Small business owners are optimistic despite tough year

Small business owners and managers are optimistic about the year ahead despite having a rough time in 2011, according to Reckon survey.

Business is looking positive for Australian retailers and after a year of more than just a few hard knocks trade is finally starting to pick up, according to a recent survey.

The 2011 Reckon Annual Australian Small Business Survey has been released in time to spread some Christmas cheer around the dinner table of the country's leading entrepreneurs.

And according to more than 1,200 small business owners and managers who all took part in the survey things are looking good.

This is especially true for employers in New South Wales and Victoria where almost half of all businesses indicated an increase in revenue in 2011 – the figure reached 66 per cent at a national level.

Reckon's Businesses Division chief executive officer Gavin Dixon welcomed the results saying that they represented a strong result for the sector. 

However, Mr Dixon was also quick to point out that unstable economic conditions were still a serious concern for many retailers. 

"2011 has been challenging for many small operators in Australia … businesses have seen an increase in costs and nearly half have faced increased competition for the services.

"Despite these challenges, as well as concerns about economic conditions and rises in living costs, it is heartening to see that businesses are feeling relatively upbeat about the year ahead with four out of five businesses expecting to increase their revenue or for it to remain stable in 2012," he said.

It was found that as many as one in three business owners listed the economy as their top concern coming into 2012.

Increases to the cost of living (21 per cent) and the introduction of the carbon pricing scheme (20 per cent) were also of concern to small businesses.

Mr Dixon said owners and managers were looking for ways to protect local operations from the types of economic issues in places like Europe and the US, as well as the uncertainty that comes with new government policies.

Yet despite these concerns 80 per cent of all businesses are predicting positive or stable revenue figures for 2012. 

With this is mind it may come as little surprise that the goals set for next year were also upbeat and increased profitability, better work-life balance and less stress sitting on top of the agenda.

In Australia, small business accounts for 30 per cent of all economic activity and is the nation's largest employer – roughly 40 per cent of them are operated by women.

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