Media release

Small business remains confident in the face of increased operating expenses

18 July 2010

The Small Business Development Corporation’s latest Ready Response Network opinion poll, reveals that while a large majority of small businesses (95%) are expecting operating expenses to increase over the next twelve months, more than 60 per cent are confident their businesses will continue to do well.

SBDC Acting Managing Director, Ms Jacky Finlayson, says the increasing cost of operating expenses such as rent, wages, utility charges and interest rates, has always been a key concern to small business operators.

According to the Ready Response Network poll:

• Of those who expect operating expenses to increase in the year ahead, almost 90 per cent anticipate an increase of up to 20 per cent, with a further 3 per cent expecting an increase of more than 50 per cent on current levels.

• At the same time, more than 50 per cent of all respondents are expecting their business activity to increase, and 62 per cent believe their net profit will increase or stay the same, over this period.

“It is encouraging to see that most small businesses have strategies in mind to cope with increased operating expenses,” Ms Finlayson said.

According to the poll, the three key strategies that small businesses are most likely to use to counter increased operating expenses are to:

• Increase the number of sales (32%);

• Increase the price of goods or services (27%); and/or

• Reduce operating expenses (e.g. reducing consumption or staff hours) (21%).

“However, 15% of respondents believe they have no option but to absorb the increased operatingexpenses,” Ms Finlayson said.

Small business operators looking for successful strategies to deal with increased operating expenses,can contact the SBDC or one of 25 Small Business Centres around the State on 131 BIZ (131 249).

Media contact: Di Graham on (08) 9220 0218 or 0432 750 565

More media releases from 2010 | Media Centre Home