A comprehensive survey of small businesses, including many from greater Western Sydney, has found the average small business operator is worried about cash flow but is optimistic about the future of their venture.
MORE than 80 per cent of small business owners in Greater Western Sydney established their own business for reasons other than the financial benefits, according to The American Express/News Community Media Index Survey. Nearly 25 per cent of business owners surveyed nominated a better work-life-balance as their reason for going into business and said they wanted more autonomy, while 20 per cent said their decision to open a business was driven by a passion.
Despite this, most indicated that the reality of running a business meant longer work hours and fewer holidays – nearly 64 per cent had taken less than 10 days off in the past 12 months. While small business owners work hard in the pursuit of their financial goals, the survey also found that more than 55 per cent also find the time and money to support local charities.
A significant number of the small business operators surveyed also indicated some level of concern over their finances including general business costs (41 per cent); cash flow (30 per cent); sales (35 per cent) and profits and competition (25 per cent).
“The concerns many business owners have regarding finances and income will always be present in small business,” said Jason Fryer, Head of Small Business at American Express. “However, while the reality of small business means hard work, the research reveals the concerns are balanced with the sense of satisfaction that comes with being your own boss.”
The survey also found that while most small business operators in the region worry about the bottom line, they are also largely optimistic about the future. When asked about their businesses outlook over the next six to 12 months, the majority (53 per cent) predicted that profits would improve over the next year. Nearly 26 per cent thought profits would remain largely constant while only six per cent thought that profits would fall.
“Small businesses are at the heart of their local communities,” said Kylie McBride, News Community Media Sales Director. “It is great to see that business confidence is strong with 80% indicating they expect constant revenue or increasing revenue in the next 6 months.”
“Our survey shows that those operators prepared to put quality time into their business have a far greater chance of succeeding,” concluded Mr Fryer. “It is also clear that people considering business ownership must first have a good understanding of the issues and challenges they will face.”
About the Survey: The American Express / News Community Media Survey was conducted online among a national sample of 3,409 small business owners and managers and 343 located in Western Sydney. The research was conducted from Monday 27 September and was completed on Wednesday 13 October, 2010.