september 2013 myob business monitor · september 2013 report september 2013. myob business monitor...

MYOB BUSINESS MONITOR:

THE VOICE OF AUSTRALIAN BUSINESS OWNERS & MANAGERS

September 2013 report

September 2013

MYOB Business Monitor September 2013

ECONOMIC PERFORMANCE

Business conditions steady

In the August 2013 Business Monitor survey, on which this report is based,

Australian small and medium business owners and managers (herein

known as ‘operators’ or ‘SMEs’) reported similar levels of annual revenue

performance as they did in the previous four surveys. These surveys, of

more than 1,000 SMEs each time, are conducted twice a year.

39% reported a decrease in revenue in the 12 months to August 2013, and

18% reported an increase. A further 40% said revenue had been steady and

3% were unsure.

By industry, the only significant difference was that more than half the

manufacturing and wholesale businesses and agribusinesses (54% and

53% respectively) reported an annual revenue fall.

Delving deeper into the data, there were no marked differences in annual revenue performance by geographical location or other business categories in this wave.

Throughout this report, where there are no marked differences those business categories will not be mentioned.

Economic and business sentiment slips

After an improvement in operators’ expectations of economic

improvement last wave, this survey showed a similar

proportion (23%, compared to 25% six months ago) expecting

the Australian economy to improve within 12 months.

However, there was a significant drop in the proportion of

operators expecting their revenue to increase in the next 12

months (down from 30% in the last wave to 25% this survey).

29% 29% 26% 30% 29% 31%26%

20% 21% 26%31%

24%14% 16% 16% 17%

45%

58% 54%47%

35%

21% 19% 19%25% 23%

Ma

r 0

4

Jul

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04

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7

Jul

07

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Ma

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Jul

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Jul

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No

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9

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Oct

10

Ma

r 1

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Fe

b 1

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Ma

y 1

2

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g 1

3

% expecting economic improvement within 12 months

19%22% 22%

26% 26%

19% 20% 18% 18% 18%

39% 39%36% 34% 34%

38% 38%41% 39% 39%

Jul 09 Nov 09 Mar 10 Oct 10 Mar 11 Sept 11 Feb 12 May 12 Feb 13 Aug 13

Changes in revenue - previous 12 months

Revenue up Revenue down


The proportion expecting a decline in revenue in the next 12

months was up slightly to 22% (from 19%), while 44%

expected steady revenue and the remainder were unsure.

In terms of sales/work in the pipeline for the August to

October 2013 quarter, this remained steady with the previous

four surveys. 28% of business operators said they had more

sales/work in the pipeline in this three-month period than

they usually did (compared to between 29% - 31% in the

previous four surveys).

Gen Y operators were the most optimistic age group about

the domestic economy, with 34% expecting it to improve

within 12 months (compared to 19% of Traditionalists and

20% of Baby Boomers, the two least optimistic age groups).

The most optimistic sector was business, professional and

property services at 30%.

Gen Y operators were also more likely to state they had more

sales/work in their three-month pipeline (46% compared to

24% of Baby Boomers and 26% of Traditionalists).

Rural business operators appeared to be the most pessimistic,

with only 19% reporting more in their pipeline in the next

three months compared to 32% of their regional

counterparts.

37%

46% 48%43% 41%

32% 30% 29% 30%25%

15% 12% 12% 14% 14%20%

24% 22% 19% 22%


Expected changes in revenue - next 12 months

Revenue up Revenue down

37% 37%

28%33%

29% 31% 29% 30% 28%

29%

21%26% 24%

30% 28% 27% 28% 27%

Nov 09 Mar 10 Oct 10 Mar 11 Sept 11 Feb 12 May 12 Feb 13 Aug 13

Sales/work in the pipeline - next 3 months

Total more Total less


Expectations by location

% expecting economic improvement

within 12 months

% expecting increase in revenue in next

12 months

% reporting more in pipeline for next

3 months

Total AU 23% 25% 28%

New South Wales 24% 25% 31%

Victoria 23% 24% 30%

Queensland 23% 27% 25%

South Australia 16% 21% 29%

Western Australia 22% 25% 26%

Metro 25% 25% 29%

Regional/Suburban 22% 27% 32%

Rural 18% 19% 19%

Green = Significantly higher than total Red = Significantly lower than total

Expectations by industry type

Agribusiness

Business, prof. &

property services

Construction

& trades

Finance &

insurance

Manufacturing &

wholesale

Retail & hospitality

Transport, postal &

warehousing

% expecting

economic

improvement within

12 months

13% 30% 21% 24% 22% 20% 21%

% expecting increase

in revenue in next 12

months

19% 29% 17% 36% 17% 33% 9%

% reporting more in

pipeline for next 3

months

15% 30% 23% 40% 33% 30% 23%



Investment intentions show emphasis on customer base

In this wave, the area of business in which operators were most likely to increase their

focus/investment in the next 12 months was customer retention, at 35%. Customer

acquisition strategies were also high on the agenda, ranking second at 30%. In third place

was plans to increase the number or variety of products/services sold (24%).

Compared to the previous survey, fewer operators intended to increase investment overall.

The areas most likely to note a reduced emphasis in investment were:

• Customer acquisition strategies (down from 35% to 30%)

• Sale of products and services online (down from 22% to 17%)

• $ value of online marketing and advertising (down from 21% to 17%)

• Working with business advisors to enhance the business (down from 18% to 14%)

• $ value of offline marketing/advertising (down from 17% to 13%)

• Customer retention strategies (down from 38% to 35%)

• Number of full time employees (down from 10% to 7%)

Key differences

Key differences were noted across a number of categories, including by age and size of the

business. As seen in the table overleaf, start ups and small businesses were more likely to

increase focus/investment in the next 12 months across a number of areas compared to

established businesses and, to a lesser extent, sole operators.

Industry sector differences also showed. Retail & hospitality and finance & insurance

businesses appeared to take a more expansionary approach. There were no significant

differences by age group.

16%

19%

18%

21%

19%

21%

24%

23%

24%

29%

34%

39%

15%

16%

19%

19%

20%

18%

22%

22%

23%

23%

27%

29%

37%

16%

17%

15%

19%

16%

21%

21%

22%

26%

27%

27%

35%

37%

10%

17%

18%

17%

15%

21%

22%

17%

21%

23%

26%

35%

38%

7%

13%

14%

15%

16%

17%

17%

18%

20%

23%

24%

30%

35%

Number of full time employees

The $ value of offline marketing

and advertising

Working with business advisers to

enhance your business

Number of part time or casual

employees

Investment in IT

systems&processes

The $ value of online marketing

and advertising

The sale of products/services

online

Sales of products/services offline

Amount you pay the employees

Your prices and margins on

product/services sold

Number or variety of products or

services offered

Focus on customer acquisition

strategies

Focus on customer retention

strategies

Where businesses plan to increase investment

Aug 13 Feb 13 May 12 Feb 12 Sept 11


Planned increase in focus/investment by age of business and size of business

Total Start ups Establishing Maturing Established Sole

operators

Micro Small Medium

Customer retention strategies 35% 42% 37% 39% 26% 34% 30% 48% 43%

Customer acquisition strategies 30% 39% 34% 36% 23% 30% 29% 35% 36%

No. or variety of products offered 24% 40% 27% 24% 15% 23% 23% 31% 25%

Prices/margin on products/services 23% 29% 23% 23% 19% 21% 25% 27% 31%

Amount employees are paid 20% 18% 23% 19% 14% 12% 24% 43% 39%

Sale of products/services offline 18% 23% 20% 14% 13% 15% 20% 28% 27%

Sale of products/services online 17% 32% 17% 16% 11% 17% 17% 18% 28%

Value of online marketing 17% 30% 20% 15% 10% 15% 15% 27% 18%

Investment in IT systems/processes 16% 25% 21% 13% 9% 15% 13% 25% 20%

No. of part time/casual staff 15% 22% 21% 12% 9% 13% 16% 18% 30%

Working with business advisors 14% 30% 16% 13% 8% 14% 11% 17% 12%

Value of offline marketing 13% 23% 16% 11% 10% 13% 11% 19% 11%

No. of full time employees 7% 11% 10% 5% 3% 4% 7% 21% 19%



Planned increase in focus/investment by industry type

Agribusiness

Business, prof. &

property services

Construction &

trades

Finance &

insurance

Manufacturing &

wholesale

Retail &

hospitality

Transport, postal

& warehousing

Customer retention

strategies

11% 41% 27% 51% 42% 47% 26%

Customer acquisition

strategies

9% 33% 30% 43% 30% 41% 19%

No. or variety of

products offered

13% 24% 23% 17% 29% 39% 9%

Prices/margin on

products/services

23% 21% 24% 17% 12% 27% 23%

Sale of products/services

online

5% 19% 12% 23% 22% 28% 11%

Amount employees are

paid

25% 20% 14% 31% 17% 23% 16%

Sale of products/services

offline

17% 19% 11% 25% 16% 25% 20%

Value of online

marketing

5% 19% 13% 31% 11% 24% 9%

Investment in IT systems

& processes

9% 20% 11% 37% 8% 13% 15%

No. of part time/casual

staff

10% 16% 9% 17% 17% 18% 13%

Working with business

advisors

13% 18% 10% 28% 6% 18% 4%

Value of offline

marketing

6% 14% 12% 24% 7% 19% 5%

No. of full time

employees

7% 8% 5% 17% 6% 9% 1%



Full time employment intentions drop

Of planned increases in focus/investment across different areas, that for full

time employees in particular has continued to decline over the last two waves

(from 16% in May 2012 to 7% this wave). The reasons for this were explored in

this latest survey.

Operators not intending to take on full time employees over the next 12

months were asked why. The main reasons were:

• They were happy with the number of team members

• They didn’t have enough funds to employ any more people

• Cash flow was unstable

The table opposite details the results.

Rural businesses were more likely to nominate not having enough money in

the business to put on new staff (54%) and to nominate cash flow (35%), while

established businesses and the business, professional & property service sector were more likely to say they did not wish to grow the business (19% each).

Why businesses have not invested in full-time staff (n=702)

Happy with the current number of staff in the business 38%

Not enough money in the business to put on staff 35%

Cash flow is too uncertain/insufficient to put on more staff 26%

Not seeing any growth in customer demand for my products/

services

21%

Lack of confidence in current business/sales being maintained 17%

I/my employees are not working at full capacity now 13%

Don't want to grow the business 13%

Not sure how to make the decision to put on new staff 2%

Other (please specify) 11%

Don't know 1%


Fuel prices top business pressure

When operators were asked what elements of the business environment they

expected to cause an extreme amount or quite a lot of pressure on their business in

the next 12 months, fuel prices came out on top at 46%, as it has been since March

2011. This was a significant rise over 38% in the previous survey.

The pressure of fuel prices was even higher amongst some segments, particularly:

• Agribusiness (76%), construction & trades (64%), and transport, postal &

warehousing (60%) businesses

• Rural businesses (61%)

• Queensland businesses (54%)

The pressure of fuel prices was followed by four pressures of relatively equal

importance:

• Profitability and price margins (32%)

• Cash flow (32%)

• Attraction of new customers (29%), and

• Competitive activity (28%)

Other than fuel prices, business pressures remained relatively unchanged since the

previous survey, although the pressure of interest rates has continued to decline

(down to 22% from a high of 34% in September 2011).

22%

19%

17%

23%

24%

34%

27%

25%

31%

31%

33%

37%

40%

19%

17%

17%

21%

22%

32%

27%

24%

27%

29%

33%

32%

40%

17%

16%

14%

21%

19%

28%

22%

23%

26%

28%

30%

29%

40%

16%

16%

15%

20%

21%

24%

23%

22%

29%

32%

29%

30%

38%

16%

16%

18%

18%

22%

22%

23%

24%

28%

29%

32%

32%

46%

Managing bad debt

Marketing/customer relationships

Exchange rates

Business finance/funding/overdraft

Retain existing customers

Interest rates

Meet tax obligations

Customer payment timing

Competitive activity

Attract new customers

Cashflow

Profitability & price margins

Fuel prices

Pressure points (% extreme/ quite a lot)

Aug 13 Feb 13 May 12 Feb 12 Sep 11


Fuel prices

Fuel prices was a greater pressure for:

• Agribusiness (76%), construction & trades (64%) and transport,

postal & warehousing (60%) businesses


• Businesses who reported a revenue fall in the previous 12 months

(57%)

Price margins and/or profitability

Price margins and/or profitability was a greater pressure for:

• Agribusiness (50%) and manufacturing & wholesale (49%) businesses


(46%)

• Queensland businesses (39%)


Cash flow

Cash flow was a greater pressure for:

• Businesses who plan to borrow money (47%)


(44%)

Attracting new customers

Attracting new customers was a greater pressure for:

• Manufacturing & wholesale businesses (54%)


(43%)

Competitive activity

Competitive activity was a greater pressure for:


(37%)

• Businesses with a website and social media site (37%)


Pressure points by industry

Agribusiness

Business, prof. &

property services

Construction &

trades

Finance &

insurance

Manufacturing

& wholesale

Retail &

hospitality

Transport, postal &

warehousing

Fuel prices 76% 30% 64% 31% 49% 41% 60%

Price margins &

profitability

50% 20% 33% 24% 49% 32% 32%

Cash flow 43% 24% 38% 32% 36% 32% 28%

Attracting new

customers

21% 25% 32% 28% 54% 32% 22%

Competitive activity 34% 26% 29% 33% 35% 24% 23%

Timing of customer

payments

25% 21% 34% 13% 38% 17% 18%

Meeting your tax

obligations

22% 20% 29% 18% 39% 23% 25%

Interest rates 37% 13% 27% 22% 27% 21% 26%

Retaining existing

customers

20% 20% 18% 33% 37% 16% 18%

Business finance/

funding/overdraft

25% 18% 17% 18% 27% 19% 19%

Exchange rates 30% 12% 13% 23% 38% 23% 17%

Marketing & customer

relationships

13% 13% 13% 18% 26% 21% 15%

Managing bad debt 18% 15% 19% 9% 25% 18% 18%



CLOUD COMPUTING & DIGITAL ECONOMY

Cloud computing take-up still low

The proportion of businesses stating they use cloud computing has remained constant

since the previous survey at 16%.

There were some significant differences within business categories, such as:

• Franchisors (46%) and franchisees (30%)

• Exporters (40%) and importers (31%)

• Finance & insurance businesses (36%), compared to 4% of agribusinesses

• Gen Y (34%) and Gen X (21%) operators compared to 7% of Baby Boomers

• Businesses with a website, social media site and both (25% on average), compared

to only 10% of businesses without a website

• Businesses working partly from home and partly from business premises (25%),

compared to 10% of those only working from the business premises

• Businesses whose revenue was up in the last 12 months (24%)

• Metropolitan based businesses (22%), compared to 6% of rural businesses

There were a number of benefits to cloud computing according to businesses using this

technology. The most frequently nominated was reduced IT costs, access to more

technology and a greater ability to work remotely (each mentioned by 25%).

How cloud technology has benefitted the business (n=167)

Reduced IT costs 25%

Allowed access to more technology 25%

Greater ability to embrace working remotely/at a location

other than the business premises 25%

Increased productivity 23%

Allowed us to stay up to date with software & technology 23%

Ability to collaborate in the cloud with clients/suppliers 20%

Increased security of business 19%

Increased the business' product/service information 19%

Reduced time spent on IT issues 19%

Improved customer service 18%

Reduced travel costs 17%

Ability to collaborate in the cloud with my business adviser 11%

No benefit obtained 12%


Half of Australian businesses have no online presence

This wave, operators were asked about their online presence in terms of

having their own business website and their own business-focused social

media site. As can be seen in the chart opposite, half of Australian SMEs do not

have an online presence.

In previous waves, operators were only asked whether they had a website.

The chart opposite (bottom) shows that the proportion of businesses with a

website has remained statistically constant since March 2011.

Gen X and Y operators were much more likely to have their own online

presence (56% and 53% respectively). Gen Ys operators were more likely to

only have a social media site (16%), while Baby Boomers (57%) and

Traditionalists (62%) much more likely to have no online presence at all.

Businesses larger than micro, ie. small and medium businesses, were more

likely to have their own online presence (65% and 78% respectively), as were

importers (69%) and exporters (66%), franchisees (74%) and franchisors (64%)

and businesses using cloud computing (73%).

Key industry differences with business website ownership are shown in the

table on the following page. Operators in retail and hospitality (67%) and

manufacturing & wholesale businesses (60%) were much more likely to have

their own online presence, particularly compared to construction & trades

(29%) and agribusinesses (20%).

Please note: the question about having a social media site was only introduced in August 13

39%47%

39% 38% 36% 38% 38% 38%

20%

Mar 10 Oct 10 Mar 11 Sept 11 Feb 12 May 12 Feb 13 Aug 13

% of businesses with a website/social media site

Website Social media site

50%

26%

8%12%

4%

Do not have an

online presence

Only have a

business

website

Only have a

social media site

for business

Have both a

business

website and a

social media site

for business

Don't know

% of businesses with an online presence


Agribusiness

Business, prof. &

property services

Construction

& trades

Finance &

insurance

Manufacturing

& wholesale

Retail &

hospitality

Transport, postal &

warehousing

Do not have an online

presence

76% 50% 66% 34% 34% 31% 54%

Only have a business

website

15% 24% 21% 31% 40% 33% 26%

Only have a social media

site for business

4% 9% 6% 8% 7% 13% 7%

Have both a business

website & a social media

site for business

2% 13% 3% 22% 14% 21% 5%

Don’t know 4% 3% 5% 4% 6% 2% 8%

Total Gen Y Gen X Baby

Boomers

Traditionalists Sole

operators

Micro Small Medium

Do not have an online presence 50% 34% 43% 57% 62% 55% 51% 32% 13%

Only have a business website 26% 28% 28% 23% 28% 20% 29% 41% 52%

Only have a social media site for

business

8% 16% 9% 6% 5% 9% 5% 12% 2%

Have both a business website & a social

media site for business

12% 13% 16% 10% 5% 11% 14% 12% 23%

Don’t know 4% 10% 4% 4% 0% 5% 2% 3% 9%



Businesses with an online presence were asked which of a number of business

changes had occurred as a result.

As can be seen in the table opposite, the most commonly stated benefit of

having a business website was more customer leads and enquiries (53%

nominated this benefit). The most commonly stated benefit of having a social

media site was more interactions with customers (58% nominated this benefit).

Between one in five and one in six operators stated that there had been no

benefit from their online presence.

Retail and hospitality businesses (41%) and importers (40%) were more likely to

nominate increased revenue or income from having a business website, while

importers were more likely to nominate being able to compete better with

having a social media site (37%).

Operators without a website were asked to nominate the main reason

why they did not have one. The main reason nominated, by over one

third, was they did not see any value in having a website.

This response was even more likely to be nominated by micro (48%)

and established (50%) businesses.

Impact of online presence Result of having a

business website

(n=391)

Result of having a

social media site

(n=210)

More customer enquiries or leads 53% 43%

More interaction with customers 37% 58%

Better customer lead conversions to

sales 32% 24%

Increased revenue or income 29% 19%

The ability to compete better with

competitors 29% 21%

The opportunity to enter new

business locations 24% 20%

Other (Please specify) 1% 1%

None of the above 16% 19%

Reasons for not having a business website (n=589)

We don't see any value in having a business website 36%

It's not a priority right now, we have all the work we can handle 21%

We prefer to advertise & market our business using other methods 19%

Our business presently can't afford to establish & run a business website 18%

We just haven't got around to it yet 13%

We wouldn't know where to start in setting up a business website 7%

We have several other business priorities or projects to undertake first 5%

We prefer to use social media tools instead (eg Facebook, Twitter, Google +) 5%

Other (Please specify) 10%

None of the above 8%


Online technologies popular

Operators were also asked about the online business tools they use. Under

half (46%) were using smartphones, while almost one quarter (24%) used

tablets. Accepting online payments (39%) was also popular, as was buying

products online (31%).

LinkedIn (17%) and Facebook (15%) were still well ahead of other social media

sites in popularity, compared to 6% each for Google+ and Twitter and 4% for

YouTube.

Online marketing tools were also popular, with just over one in five operators

stating they used internet search engines (22%) and email marketing (21%) for

their business.

The table on the following page shows the online tools used by industry type.

Retail and hospitality business operators were much more likely to be using

these tools, particularly compared to construction and trades businesses and

agribusinesses.

Other segments more likely to be using online tools included:

• Small businesses (5 – 19 employees)

• Businesses with a website and/or social media site

• Importers and exporters

• Businesses using cloud computing

Key differences are shown in the table overleaf.

Online tools being used by businesses (n = 1,022)

TECHNOLOGY

Use one or more smartphones 46%

Use one or more tablets (eg. iPad) 24%

INTERNET/EMAIL MARKETING

Use internet search engines to promote business 22%

Conduct email marketing to customers 21%

BUYING/SELLING ONLINE

Accept online payment from customers via internet banking, a

shopping cart or mobile app

39%

Buy products/services online 31%

Sell products/services online directly to customers using your

own website

15%

Sell products /services online (eg eBay, Trading Post, Trade Me) 11%

SOCIAL MEDIA (net) 33%

Network with business colleagues &/or clients on LinkedIn 17%

Connect with customers & fans via a business page on Facebook 15%

Share news & updates via a company blog 8%

Connect with customers & fans via a business page on Google 6%

Communicate via micro-blogging sites such as Twitter 6%

Connect with customers & fans via a business page on YouTube 4%

OTHER

Use Skype or VOIP to make free business phone calls 16%

Have internet access but do not do any / not interested in any of

above activities

19%


Tools by business type

Agribusiness

Business, prof. &

property services

Constructio

n & trades

Finance &

insurance

Manufacturing

& wholesale

Retail &

hospitality

Transport, postal &

warehousing

Use one or more smartphones 31% 45% 52% 52% 48% 40% 45%

Use one or more tablets (eg. iPad) 16% 27% 21% 34% 22% 22% 24%

Buy products/services online 39% 31% 32% 17% 25% 40% 22%

Use internet search engines to promote bus. 11% 22% 20% 21% 30% 31% 19%

Conduct email marketing to potential/

existing customers 7% 22% 16% 27% 29% 33% 13%

Network with business colleagues &/or

clients on LinkedIn 3% 21% 10% 39% 15% 15% 11%

Connect with customers & fans via a business

page on Facebook 7% 14% 7% 20% 18% 25% 9%

Communicate via micro-blogging sites such as

Twitter 2% 7% 3% 9% 7% 7% 4%

Share news & updates via a company blog 8% 8% 5% 13% 7% 10% 8%

Use Skype or VOIP to make free business

phone calls over the internet 5% 25% 8% 25% 18% 13% 13%

Accept online payment via internet banking, a

shopping cart or mobile app 46% 35% 48% 27% 36% 42% 39%

Sell products/services online directly to

customers using your own website 7% 12% 6% 15% 28% 25% 16%

Sell products /services online (eg e-Bay) 9% 9% 10% 13% 11% 26% 2%

Have internet access but do not do any / not

interested in any of above activities 31% 20% 18% 11% 17% 14% 20%


page on YouTube 0% 3% 4% 8% 7% 7% 6%


page on Google+ 2% 4% 6% 12% 11% 9% 3%



Tools by online presence, cloud computing Has a

website

Does not

have a

website

Has a social

media site

Does not

have a social

media site

Has both a

website &

social media

site

Use cloud

computing

Do not use

cloud

computing

Use one or more smartphones 52% 42% 53% 44% 56% 51% 45%

Use one or more tablets (eg. iPad) 27% 22% 30% 22% 26% 41% 21%

Buy products/services online 36% 29% 39% 29% 45% 35% 31%

Use internet search engines to promote bus. 36% 13% 39% 17% 46% 32% 20%

Conduct email marketing to customers 34% 12% 37% 17% 43% 26% 20%

Network with business colleagues &/or clients

on LinkedIn 27% 11% 37% 12% 45% 30% 14%

Communicate via micro-blogging sites eg Twitter 25% 9% 53% 5% 58% 22% 14%

Share news & updates via a company blog 9% 3% 18% 3% 21% 10% 4%

Use Skype or VOIP to make free business phone

calls over the internet 16% 3% 22% 5% 31% 9% 8%

Accept online payment via internet banking, a

shopping cart or mobile app 21% 13% 25% 14% 24% 28% 14%


page on Facebook 41% 38% 37% 40% 43% 31% 41%


page on YouTube 33% 3% 30% 11% 44% 22% 13%


page on Google+ 17% 8% 24% 8% 23% 17% 11%

Sell products/services online directly to

customers using your own website 8% 26% 3% 23% 3% 3% 21%

Sell products /services online (eg e-Bay) 9% 1% 11% 3% 14% 9% 4%

Have internet access but do not do any / not

interested in any of above activities 12% 3% 13% 4% 15% 16% 4%



While it could be expected that Traditionalists were less likely to be using the majority of online tools than their Gen X and Gen Y counterparts, they were in fact

more likely to accept payments online (46% nominated this option). Gen Y operators were more likely to use a variety of social media tools, although use of

Twitter and company blogs amongst this generation was not significantly different from their older counterparts.

Online payment & social media usage

by generation

Gen Y

(18 – 29 years)

Gen X

(30 – 49 years)

Baby Boomers

(50 – 64 years)

Traditionalists

(65+ years)

Accepting payments via internet

banking, a shopping cart or mobile app

39% 31% 33% 46%

Connect with customers & fans via a

business page on Facebook

27% 17% 13% 6%


business page on YouTube

14% 6% 2% 1%


business page on Google

13% 7% 5% 2%

Communicate via micro-blogging sites

such as Twitter

11% 7% 4% 4%

Share news & updates via a company

blog (either via your own website or

Wordpress/Blogger)

12% 8% 9% 4%


TELEWORKING

Almost two thirds of the operators surveyed utilised some form of

teleworking within their business (64%, up from 57% six months

ago). 38% had employees working only from their business premises

(down from 43%).

Teleworking was more likely to be used by:

• Construction & trades (86%), transport, postal & warehousing

(79%) and business, professional & property services (69%)

• Businesses using cloud computing (76%)

• Gen Y-run businesses (74%)

• Metropolitan based businesses (69%)

• Sole operators (67%)


Agribusiness

Business, prof. &

property services

Construction

& trades

Finance &

insurance

Manufacturing

& wholesale

Retail &

hospitality

Transport, postal

& warehousing

Work mainly from another

location 19% 35% 67% 25% 22% 24% 49%

Work partly from home/ partly

from another location 7% 36% 22% 46% 25% 19% 29%

Only work from business

premises 74% 31% 14% 37% 54% 57% 21%

37%

27%

38%

Incidence of teleworking

Work mainly from a location

other than business premises

Work partly from home and

partly from the business

premises

Only work from the business

premises


Operators who indicated their employees worked remotely were asked about the

locations from which these workers operated. Half of the operators (50%) had

workers mainly on the road, while 39% had workers operating mainly from home.

Premises other than home (eg. co-working centre/ library/digital work hub) were

more likely to be utilised as an alternate location by Gen Y operators, exporters and

importers, while small businesses were more likely to utilise the business as the main

location.

In terms of industry, the teleworkers within business, professional & property

services businesses were more likely to use home as their main location, while

construction & trades sector teleworkers were more likely to work on the road.

The main barriers identified by operators currently not employing any form of

teleworking was they could not utilise this approach within their business, rather

than needing additional support in terms of technology or process.

They stated that their business was not suited to teleworking because staff needed

to be on the premises at all times (41%). This was particularly the case amongst small

and medium sized businesses - 60% of operators of non-teleworking businesses

nominated this as their main reason for not considering teleworking.

Other reasons nominated included:

• I think it would be too disruptive to my business (8%)

• I haven't assessed and managed the risks (8%)

• I don't know whether my employee/s would be working to their usual

standard if they worked remotely (6%)

• I'm not sure whether it will cost me money rather than save me money (6%)

• Would need to spend time changing processes or creating new ones (4%)

• I think it could work but I don't have the technology in place (4%)

16%

13%

10%

15%

13%

8%

20%

18%

12%

Work mainly from home & partly

on the road

Work mainly from home & partly

from business premises

Work mainly from home partly

using mobile devices from other

than home

Work mainly from the business

premises & partly from home

Work mainly from business

premises & partly on the road

Work mainly from the business

premises partly using mobile

devices from other than home

Work mainly on the road & partly

from home

Work mainly on the road & partly

from business premises

Work mainly on the road partly

using mobile devices from other

than their home

Where telework happens


WORK-LIFE BALANCE

Half the operators surveyed were satisfied with their work-life balance

(38% quite satisfied; 12% very satisfied). As shown in the chart

opposite, under a quarter of operators (23%) were currently

dissatisfied with their work-life balance.

Those segments least satisfied with their work life balance included:

• Gen Y operators (38%), compared to 58% of Traditionalists

• Males (47%), compared to 54% of females

• Small business (43%), compared to 57% of micro businesses

• Businesses whose revenue was down in the last 12 months

(45%)

• Businesses planning to borrow money in the next 12 months

(40%)

5%

18%

26%38%

12%

2%

Work-Life Balance

Very dissatisfied

Quite dissatisfied

Neither

Quite satisfied

Very satisfied

Don't know


BORROWING AND EXIT PLANS

Over one in 10 operators (11%) stated they planned to borrow money for their

business over the following 12 months, and while 13% were unsure whether they

would, the majority (76%) stated they did not plan to. Those most likely to be

considering borrowing included:

• Franchisors (48%)

• Exporters (30%) and importers (24%)

• Cloud computing users (28%)

• Gen Y (21%) and Gen X (15%) operators

• Businesses whose revenue had increased in the previous 12 months (17%)

• Businesses with a website (15%)

As can be seen from the table, over half these operators planned to use an

institutional lender (52%) with a further 23% planned to draw on their savings.

Over one in three business owners have an exit plan in place or have valued their business

Over one in three business owners (35%) said they had an exit plan in place for their business. Traditionalists were much more likely to have an exit plan (57%

compared to 25% of Gen X and Gen Y business owners). Businesses with revenue under the GST threshold (27%) and start up businesses (21%) were also less likely

to have an exit plan.

A similar proportion of business owners (32%) had established a value for their business. Traditionalists were again more likely to have done this (50% compared

to 26% of Gen X business owners), as were rural businesses (42%), businesses with a website (39%), businesses with a revenue of $1 – 5 million (48%), retail &

hospitality businesses (43%), agribusinesses (48%), importers (50%), exporters (48%) and businesses that plan to borrow money (58%).

Of those who had established a value of their business, valuations were more likely to have been based on average turnover (43%), comparative market value

(38%) or an independent valuation from an accountant or specialist (32%).

From where borrowers plan to borrow (n=113)

Institutional lender (e.g. bank or other lending institution) 52%

Own savings & investments 23%

Credit card 18%

Redraw on mortgage/home equity line of credit 16%

Life partner (e.g. husband, wife, de facto, partner, boyfriend,

girlfriend) 12%

Other family member/s 11%

Parent/s 7%

Angel investor 4%

Staff 4%

Friend/s 3%


39%

31%

38%

48%

56%52%

57%54%

49%

21%

29%

21%

14% 14%11%

17%14% 16%

Jul 09 Nov 09 Mar 10 Oct 10 Sept 11 Feb 12 May 12 Feb 13 Aug 13

Perceptions of Federal Government support

Total dissatisfied Total satisfied

GOVERNMENT

Federal Government dissatisfaction trending down

Dissatisfaction with the Federal Government remained high, but

has declined from the high in May 2012. Just under half (49%)

expressed dissatisfaction with the level of support from

Government for businesses such as theirs, a decrease on 54% six

months previous. This has not yet translated into higher levels of

satisfaction however.

Higher dissatisfaction was noted among various categories:

• Traditionalists (60%) and Baby Boomers (56%), compared

to 30% of Gen X operators

• Queensland operators (59%), compared to 43% of New

South Wales operators

• Businesses that reported a revenue fall in the prior 12 months (62%), compared to 41% whose revenue rose

• Rural businesses (62%) and agribusinesses (69%)

• Established businesses (58%), compared to 38% of start up businesses

Because operators were surveyed so close to the Federal Election and the change of government, they were asked whether they thought a Liberal Government

would do a better or worse job than Labor in supporting businesses like theirs. 50% of operators thought Liberal would do a better job and only 18% thought it

would do a worse job (the remainder said they felt both would perform the same – 18%, or were undecided – 3%).

In terms of the most appropriate management of the economy, 44% of operators trusted Liberal the most, compared to only 18% nominating Labor. Significantly,

over a quarter (26%) did not trust any of the political parties over another in terms of management of the economy.

Operators were also asked about policies or initiatives that might influence their vote for or against the party promoting them. As seen in the table overleaf, the

most popular initiatives were ‘significantly simplifying the GST/BAS reporting process’ (67%), ‘the abolition of the Federal Carbon Tax’ (62%) and ‘increased Federal


Government investment in transport infrastructure in our major states and cities’ (61%). These high-ranking issues remained consistent with the previous wave. At

the other end of the scale, ‘the introduction of a paid parental leave levy for all businesses’ was more likely to cause operators to vote against the party proposing

it (39%).

Policies or initiatives that business operators would vote for/against For Against

Policies that significantly simplify the GST/BAS reporting process 67% 5%

The abolition of the Federal Carbon Tax 62% 14%

More Federal Government investment in transport infrastructure in our major states & cities 61% 7%

Increased Federal Government funding for skills, training & apprenticeship programs 58% 6%

A proportion of Government procurement contracts being assigned to small businesses 55% 6%

Increased Government funding for innovation, research & development by Australian businesses 54% 7%

Government backed loans to small business start ups 52% 11%

The creation of a single flat tax for personal tax & company tax 51% 18%

Providing free Government-funded training to all small businesses on how to use the Internet to enhance & grow

their business

48% 10%

Continuation of the tax loss carry back scheme 45% 8%

The abolition of the mining tax 41% 23%

The abolition of the GST 38% 30%

Remove the $1000 threshold at which GST is collected on goods purchased from abroad 34% 21%

The abolition of the rise of the Superannuation Guarantee Levy from 9% to 12% by July 2019 33% 26%

Making the ATO responsible for the distribution of staff superannuation & maternity leave payments 31% 16%

Introduction of a paid parental leave levy for all businesses 19% 39%

Baby Boomers (67%) and Traditionalists (75%) were much more likely than Gen Y operators (43%) to vote for increased government investment in transport

infrastructure. On the other hand Gen Y operators were more likely to vote for the introduction of a paid parental leave levy on all businesses and making the ATO

responsible for the distribution of staff superannuation and maternity leave payments (48% each). Small businesses were most likely to vote for increased Federal

Government funding for skills, training and apprenticeship programs (68%) and also more likely than other businesses to vote for making the ATO responsible for

the distribution of staff superannuation and maternity leave payments (44%).


State Government satisfaction increases

Operators were asked about their satisfaction with the level of support from

their State Government. As seen in the chart opposite, satisfaction has

increased quite significantly since the last survey from 17% to 25%, and is now

at the highest levels since this question was introduced in July 2009.

The highest levels of dissatisfaction were from South Australian operators

(62%), and the biggest change was noted amongst Victorian operators whose

dissatisfaction dropped from a high of 55% in May 2012 to 31% in August 2013.

Dealing with government

Operators were asked what issues were important when dealing with

government. Dealing with knowledgeable people, simplicity and first time

resolution were the key issues identified, as shown in the table opposite.

While the magnitude of the importance changed amongst the various segments,

the importance of these three issues was consistent across the board.

Important aspects of dealing with government (n=1022)

Knowledgeable - The information I get is accurate, reliable & easy

to understand 42%

Simplicity - It is easy to understand what to do 35%

First time resolution - If I have a problem, it is resolved without

passing me on to another area 32%

Availability - I can get support at a time that is convenient to me 25%

Courtesy -The people I deal with treat me professionally & with

courtesy 25%

Personal - I can talk to the same person each time, on multiple

occasions, regardless of what I am trying to do 21%

Channel - I can deal with government in the way that suits me best

(e.g. online, mail, on the phone, mobile) 19%

14%19% 17%

12%18%

14% 15% 16% 17%

25%

46%43%

46%

53%

46%50% 51% 49%

43%40%


Perceptions of State Government support for SMEs

TOTAL SATISFIED TOTAL DISSATISFIED


About the study

The MYOB Business Monitor researches business performance and attitudes regarding areas such as profitability, cash flow, pipeline work, technology usage and

the government. This report presents the summary findings for key indicators from the MYOB Business Monitor comprising a national sample of 1,022 business

owners, managers and directors (operators), conducted from August 1 – 20, 2013. The businesses participating in the online survey were both non-employing and

employing businesses. All data has been weighted by industry type, location and number of employees, which are in line with the Australian Bureau of Statistics

(ABS - Counts of Australian businesses, including entries & exits, June 2007 - June 2009 - 8165.0).

This research report was prepared by Gundabluey Research and fieldwork was completed by Colmar Brunton (a Millward Brown Company) for Kristy Sheppard,

Public Relations & Corporate Affairs Manager – Australia, MYOB Australia Limited [email protected] | http://myob.com.au

Industry Weighting No.

Agribusiness 10% 60

Construction & trades 17% 174

Finance & insurance*1

7% 48

Manufacturing & wholesale 8% 73

Professional & business services 26% 275

Retail & hospitality 11% 144

Transport & warehousing*1 7% 55

Other industries**2 (incl. in total results) 15% 193

TOTAL 100% 1022

Location Weighting No.

New South Wales 33% 336

Victoria 25% 261

Queensland 20% 223

South Australia 7% 86

Western Australia 10% 87

Other 5% 29

TOTAL 100% 1022

1 Caveat: There is high margin of error of +/-15% @ 20% on these small bases

2 Other Industries, which have been combined to minimise their margin of error,

include these sectors: Communication Services; Cultural & Recreational Services;

Education; Electricity, Gas & Water Supply Services; Health & Community Services;

Mining; and Personal & Other Services

The generations were categorised as follows:

• Generation Y: 18 – 29 years of age

• Generation X: 30 – 49 years of age

• Baby boomers: 50 – 64 years of age

• Traditionalists: 65+ years of age

Length of time in business was categorised as per the following:

• Start up: in business fewer than 2 years

• Establishing: 2 to 5 years

• Maturing: 5 to 10 years

• Established: 10+ years

Number of employees/business type Weighting No.

0 employees/sole traders 60% 623

1-4 employees/micro business 24% 236

5-19 employees/small business 11% 125

20-199 employees/medium business 4% 38

TOTAL 100% 1022

september 2013 myob business monitor · september 2013 report september 2013. myob business monitor...

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