- SMBs see the general economy (33 per cent) and access to capital (30 per cent) as the two biggest impediments to business growth
- This time next year, 62 per cent of business owners expect to be financially better off
- 61 per cent believe that the Coalition’s policies – as opposed to the other parties – are most likely to have a positive impact on their business
A survey of the nation’s business owners by specialist business lender GetCapital has revealed SMBs believe access to capital is hindering their business growth.
74 per cent of those surveyed believed the major banks’ appetite for lending has decreased post the Royal Commission. Despite this, those surveyed expect to be financially better off in 2019.
In spite of the sentiment that funding for SMBs has all but dried up, GetCapital CEO Jamie Osborn suggests the survey responses are remarkably positive for small business.
“Access to capital for small businesses continues to be the biggest impediment to small business growth. We are hearing from customers, brokers and the market generally that Bank funding for small business continues to tighten.
“However, the bullish sentiment of business owners for the new financial year combined with almost half wanting to take advantage of the instant asset write-off scheme are very positive indicators, Osborn said.
Osborn believes the survey responses were particularly revealing ahead of the federal election and in light of the Government’s Budget initiatives targeting small business announced in April including the extension of the instant asset tax write-off.
Forty-nine per cent of respondents said they are likely or very likely to take advantage of the instant asset write-off scheme in 2019/2020, while 61 per cent believe that the Coalition’s policies – as opposed to the other parties – are most likely to have a positive impact on their business.
“The asset write-off policy combined with the reduction in tax rate, provide strong incentives for profitable, tax-paying small and medium business to invest further in their businesses”, said Osborn.
“Stimulating small business investment in this way is a very effective way of boosting employment growth, so there are likely to be positive flow-on effects to the general economy from these policies”.