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Only 30 per cent of SMEs to invest in their business in 2012

Justin Grey
30 April 2012 1 minute readShare

A survey by business financier Bibby Financial Services has found that only 30 per cent of SMEs are planning to invest in their business in the next 12 months, while 19 per cent plan to sell off assets.


A survey by business financier Bibby Financial Services has found that only 30 per cent of SMEs are planning to invest in their business in the next 12 months, while 19 per cent plan to sell off assets.

Conducted in February of this year, the Bibby Barometer Small Business Survey is a national study surveying primary decision makers in over 200 non-retail SMEs.

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Bibby’s National Head of Sales, Gary Green, said the survey results show that managing a small business is a tough balancing act.

“Our Bibby Barometer Small Business Survey showed that more than one in three SMEs would need to downsize or would become insolvent if their two largest suppliers put them on cash-on-delivery status (39 per cent) or if they had to write off a debt of five per cent of turnover (37 per cent).
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“While small businesses are experiencing difficult times, they face the need to innovate and invest to take advantage of structural changes in the economy – at a time when many large businesses, including mining companies and the banks, are making record profits.”

 

“Our recent research shows that small businesses are even more stressed than they were a year ago. SMEs are weighed down by cash flow concerns, with 27 per cent experiencing bad debts in the past 12 months.”

The Bibby survey comes hot on the heels of the Federal Government’s announcement that it is considering the recommendation that small businesses should be able to offset losses incurred in major investment spending of up to $1 million against tax they have paid in the prior two years. The recommendation was part of the recently released Business Tax Working Group final report.

Follow @mybusinessau on Twitter for breaking stories throughout the day.

 

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Only 30 per cent of SMEs to invest in their business in 2012
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Justin Grey

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