A growing number of SMEs are confident in the economy according to the latest Sensis Business Index (SBI) survey.
A quarter (25%) of all Australian SMEs believe the economy is growing compared to 16 per cent who say it is slowing, resulting in the best net balance score (+9) since December 2013.
It is the fourth quarter in a row where a positive net balance score has been recorded on this measure, while there was also a seven point increase in expectations of the economy in 12 months time to +16 – another four year high.
Sensis CEO John Allan said SMEs assessed prices, sales, profitability, employment and wages and saw a rise in the net balance score both for last quarter and in expectations for the quarter ahead.
“For the majority of businesses, growth is driving further employment and the employment net balance has improved to its best result in more than five years,” Allan said.
The index, which reflects the views of 1000 small and medium businesses from across Australia, also revealed the business confidence score jumped seven points to sit at the equal highest level since March 2010.
The net balance of +46 is calculated by comparing the number of confident SMBs (61%) to those who are worried (15%).
Access to finance improved, with the good news it has become easier for many SMBs to secure loans. Of the 12% of SMBs who applied for finance, more than two thirds were successful.
A number of state and territory governments are rolling out training schemes to help build skills and capabilities useful to SMEs.
