Business Sector Failed to Fire in First Quarter
The Canberra Business Chamber’s latest Canberra Business Beat survey suggests that business is under more pressure than ever, with businesses reporting a tough first quarter.
“More than half of all firms failed to hit their business targets for the quarter ended 31 March, with nearly a third expecting their businesses to shrink over the next 12 months,” Greg Harford, Canberra Business Chamber Chief Executive, said today. “The biggest issue for business continues to be increasing costs, and reduced customer demand driving concerns about cashflow.
“Business is broadly split between expecting to reduce staff, increase staff and retain current staff levels over the next 12 months. Private sector businesses employ around two-thirds of all working Canberrans, but rely on income from customers to pay wages and other bills and to continue growing. Unfortunately, there is a sense that the business sector is underperforming, with 40 per cent of respondents having a negative view of business confidence at the present time. There is a significant degree of uncertainty at the present time owing to the Federal Election and global uncertainty which is not good for the local economy.
“Around half of all businesses continue to cite regulatory red tape and compliance requirements as a key issue impacting productivity. The Chamber receives regular feedback about recent changes to the Fair Work Act, and 38 per cent of respondents note note that changes have added more complexity; and 12 per cent say that they have reduced employee numbers as a result. The Chamber runs regular information sessions for members on these issues, and offers a free Workplace Relations Service for most members to help navigate the complicated legal framework.
“Whoever forms Government after the Federal Election on Saturday, Chamber members want to see more focus on small business, and steps taken to make it less complex and costly to operate and grow family owned businesses.”
See a copy of the latest Canberra Business Beat report here.
