SMEs feeling negative effects of economic downturn, not satisfied with Federal Government stimulus package.
Following the recent Federal Government stimulus package and growing anecdotal evidence of a worsening economy in many sectors, legal and accounting group MSI Global Alliance surveyed 690 Australian SME clients (companies with up to 200 employees). The survey took place between 17 to 24th February 2009.
The following are key results of the study:
When asked if, given the measures introduced by the Federal Government in its $42 billion stimulus package, the Rudd Government is steering the best course possible through the current economic situation, the following response was recorded:
From a SME perspective, respondents felt that the most effective way the federal and state governments could combat the economic downturn is to:
When asked to identify how their businesses had been impacted in the financial year to February 2009, respondents answered in the following ways:
However, on the positive side:
Melbourne based MSI Global Alliance spokesman Charles Hornor commented that “This survey tells us that SMEs are clearly feeling the negative impact of the global economic downturn with 66% of respondents saying they are already feeling it and a further 20% saying they expect to in due course. For more than 50% of those surveyed, revenue is down and clients are delaying expenditure while a third said they have already put some capital expenditure on hold.”
“Of course, it is important to recognise that SMEs represent the mainstay of the Australian economy and if they are feeling pain, the ripple effect into households cannot be far behind.”
“It is also interesting to note that 90% of the SMEs surveyed felt that a reduction in personal income tax rates would be more likely to stimulate consumer spending than the $950 cash payments introduced by the Federal Government.”
Aitken Partners is a member of the MSI Global Alliance.