MEDIA RELEASE: April 30 2021: The end of JobKeeper has not dampened sentiment amongst SMEs throughout Australia. Business confidence continues to grow with positive data reported across all key performance indicators including revenue, profit, employment and capital investment.
The proportion of SMEs reporting lower revenues than before the pandemic has dropped from 54% to 43% over the past month, with the average decline now 14% compared to 17% in the previous wave. Consequently, the proportion of SMEs now hiring has risen to 23%, with 42% of these filling newly created job roles.
Unfortunately, 40% of these SMEs are now finding it very difficult to fill job roles compared to 24% in March. Issues associated with wage demands, working hours and transient workers are all ticking up and will restrict growth if not addressed.
The COVID-19 SME Tracker is conducted by leading business market research firm ACA Research in partnership with TEG Insights and tracks the impact of COVID-19 across more than 400 small and medium enterprises each month.
Looking forward, SMEs expect local and global economies to continue to strengthen and therefore expectations regarding business investment are also positive. Intentions to invest have risen across all categories, but demand for small trucks, agricultural, construction and earthmoving equipment has spiked in April.
Despite strengthening business confidence satisfaction with the federal government has reached its lowest point during the pandemic. This would indicate SMEs are dissatisfied with vaccination rollout and the potential impact on the economic recovery.
SME decision makers are definitely supportive of the vaccination with 73% likely to get the jab when available and 15% claiming they will make the vaccination compulsory for employees.
ACA Research, Managing Director, James Organ said: “In summary, market conditions continue to improve despite the end of JobKeeper, with positive revenue, profit, employment and capital expenditure data supporting the recovery.
However, satisfaction with Federal Government is waning as ongoing mismanagement of the vaccination rollout threatens to impact the longer term economic recovery.”
Website: ACA Research