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SMEs optimistic despite tougher borrowing environment
A pre-Budget Client Pulse Check conducted by KPMG Enterprise in March 2019 confirms what many small businesses have feared: since the Royal Commission, close to one third have found it more difficult to obtain a loan, with 14 per cent saying it’s been “a lot more difficult” and 17 per cent “somewhat more difficult”.
close to one third have found it more difficult to obtain a loan, with 14 per cent saying it’s been “a lot more difficult” and 17 per cent “somewhat more difficult”.
KPMG Enterprise, which advises mid market organisations, undertakes a Pulse Check annually before the Federal Budget. This year 133 CEOs, CFOs and Company Directors completed the survey. Just over half of respondents (52 per cent) were optimistic about their business’ future in the next 5 years, but 48 per cent were either pessimistic or neutral. Businesses situated in NSW (66 per cent) and Victoria (49 per cent) appeared the most positive.
Respondents were especially concerned about their personal finances, with over one third (63 per cent) pessimistic or neutral. The downturn in the housing market has affected almost half (46 per cent) with 11 per cent saying they have been ‘greatly affected’. This is also applicable to business outlook – those who were greatly or somewhat affected by the downturn in housing were also more likely to be pessimistic about the future of their business, relative to those with an optimistic outlook (61 per cent versus 35 per cent).
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ABF BULLETIN - VOL 4 ISSUE 7