SMEs target on Increasing Client and Revenue Growth this 2012

A recent survey reflects that among the top priorities of small and medium business this 2012 are customer relationships and increasing business activity in the markets.

This was according to the Business Monitor Survey which was released recently by MYOB, a management service provider. And yes, the customers remain the main focus of small and medium businesses.

"Customers will understandably remain the core focus for Australian SMEs in maintaining and strengthening their business health in 2012, with our research finding more than one third of businesses are set to increase activity around attracting customers' attention and building their loyalty,” said Tim Reed, Executive Chief of MYOB.


"It makes sense for today's business owners, many of whom face increasingly financially conservative consumers, to foster a 'stickier' customer by providing more products or services to whet their appetite," he added. "For many it will be the key to their survival in a two-speed economy,” Reed continued.
It was also seen that about 24 percent of businesses are intending to enter online sales this year.
According to the survey, about a third of the more than 1000 Australian small and medium businesses include in their key strategies for this year attracting and retaining customers, as well as diversifying businesses into new areas or fields.

It is interesting to note that the Australian accounting software, cloud computing, has been seen to have played a vital role in the expansion of businesses offshore. It is said that those firms that have their own website were able to increase their revenue by six percent in the past 12 months. This is in comparison to those who did not have it or used accounting software for business.

According to Mr. Reed, "The key is getting online, being found, communicating well to your online audience and in doing so getting solid access to the digital economy.”

Almost Half of SME Businesses are Using Cloud Computing

At present, half of firms are already adapting cloud computing in their business processes after being convinced of the technology’s benefits. According to a new research by Spiceworks, a social business network company, a good 46 percent of the total 1,200 small and medium-sized businesses is already using this online accounting.

In CloudPro’s report, this figure reflects an increase from what only used to be 28 per cent who were using the Australian accounting software earlier in 2011.

"Despite market fluctuations, 2011 proved to be a great year for disruptive technologies as SMBs increasingly adopted tablet computers, cloud services and virtualisation technology," says Jay Hallberg who is the co-founder and vice-president of marketing at the research study.


This development may be attributed to the cloud’s easier IT management with the use of the internet as well as its secure off-site storage of data which are deemed necessary by business enterprises.

Setting cloud computing apart from other hosting services is the fact that data are being stored and handled independently by the service provider. This also further means that the data are kept confidential.

"Cloud computing has been on the business radar for some time and our report proves that we are at the tipping point for mass adoption among small and medium-sized businesses.” This is according to Chris Stening. Managing director of Easynet Connect.

The only concern seen by the same study is that some firms are neglecting to take steps at raising their security levels to cope with the demands of cloud computing.

It may be recalled that there was a prediction by Rob Lovell, Chief Executive at ThinkGrid, that 2010 was going to be a year for cloud computing providers to grow and reassure businesses of the technology’s safety and features.

Carbon Tax Impacts Make Accountants Worry

According to the results of a survey of accountants, the Australian small business owners’ financial performance will be negatively impacted by the introduction of a carbon tax.

Data from a survey conducted by the Institute of Public Accountants (IPA) shows that 70 percent of the respondents are worried about the financial performance of their small business clients as they believe that their small business would be negatively affected while 66 percent believe that enough consideration about how the tax will impact SMBs have been provided.

IPA chief executive, Andrew Conway, commented on the survey that IPA members were trusted advisers to the Australian small business community. Furthermore, he believed that the perceived bleak outlook for the small and medium business sector over the next 12 months is very alarming for them.

Moreover, Conway said that regardless of the Government statement, that only top polluters will be impacted with the introduction of the carbon tax, it seems that the government has not considered the interests of small businesses.

According to the IPA survey, data shows that 66 per cent of respondents believed that not enough consideration have been given to how the carbon tax would impact small business, while 67 per cent believed that insufficient information have been provided to small business over how the carbon tax might affect them.

The IPA survey comes just days after the Australian Retailers Association released its carbon tax survey. The ARA survey shows that 83 percent of retailers believe that the carbon tax will impact the consumers in a way that they will spend less while 85 percent believed that profitability will be negatively impacted.

High Public Opposition

The carbon tax issue shows a high public opposition and is growing with 60 percent of voters – up 3 percent since last month – against the tax. The figure is slightly under Americans’ disapproval of a carbon tax that was at 70 percent last year.

Likewise, Australia’s mining, energy, agriculture and food industry groups are worried about an expected increase in their expenditures.

Source: Carbon tax to hurt small business: IPA | Dynamic Business »

SME Confidence Now Back Despite Worsening Conditions

The National Australia Bank’s SME Quarterly Survey for the March Quarter has shown that the confidence of Small to Medium-sized enterprises is back after the floods that occurred last December and January.

Demand was the only constraint to SME’s that had a significant rise. Borrowing costs, staffing, global economic uncertainty, and cash flow were considered less significant constraints on long-term decision making in the March quarter.

There are signs of optimism that are seen but it is still a challenging time for SME’s. This is according to NAB Business Australia Executive General Manager, Daryl Johnson.

“During the March quarter, SME confidence levels were up from five to eight (index) points, with all SME industries returning to positive territory,” Mr. Johnson added.

He said that “this suggests they are more optimistic about future conditions and are looking forward to the post-flood recovery period. Despite this optimism, SME business conditions have remained on a gradual decline from the post-GFC peak in December 2009, pushed down again by the recent floods that are estimated to have reduced national business revenues by 5 per cent in January.”

Western Australia and Victoria recorded the highest levels of confidence for the second consecutive quarter. Confidence levels are positive across each state. However, business conditions deteriorated in all major states except for South Australia. Queensland, on the other hand, has the largest deterioration while Victoria has the strongest.

“Fifty eight per cent of SMEs report that sales and orders are a more constraining factor on output than finding suitable labour (45 per cent). Regarding profitability, 40 per cent of SMEs surveyed believe demand remains the most significant profitability constraint in the next 12 months, while availability of suitable labour (13), wage costs (11) and interest rates (8) were less significant,” Mr. Johnson said.

The survey revealed that industry-wise, the strongest was business services and finance whilst the weakest was construction and retail.

News and Image from: International Business Times »