Small and medium business confident about 2017

January 29, 2017
Craig Matthews
Managing Director at Stock Box
Small and medium business (SMB) confidence is now sitting at its highest level since March 2010, according to the latest Sensis Business Index (SBI) survey. 
The Index, which reflects the views of 1,000 small and medium businesses from across Australia, revealed that more than four times as many SMBs (61%) are now feeling confident, as those who are worried (15%).
This business confidence has been echoed in a recent Stock Box survey of more than 350 independent retailers across Petrol & Convenience, Mixed Business and Newsagents.
The survey was conducted over a four-week period in January where members were asked to indicate their business focuses for 2017. While just under a third (31%) indicated a business as usual approach, 69% of members indicated that they were looking to focus on one or more key areas of business development.
Despite the imminent arrival of Amazon in late 2017, and the continued squeeze of Coles, Woolworths, and Aldi for market dominance, perceptions amongst SMB’s of the economy are now in positive territory for both the short and long-term projections, pointing to a strong year ahead.
Retail space upgrade
In a show of confidence in relation to the future of independent retail, 28% of retail members are planning to invest in their retail space. This could be broken down into those members who were looking to upgrade fixtures and fittings (15%) and those members who were looking to renovate and extend their retail space (13%). This is probably the strongest sign out of the survey that members were confident about their future, despite the introduction of new entrants and a more aggressive retail environment.
Technology and Security
More and more independent retailers are placing increased focus on better systems and security in 2017, with 13% of members indicating further investment into POS and security systems upgrades.
Business For Sale
In what can only be described as a changing of the guard, 10% of members will put their business on the market this year as they look to exit the market completely. For most this is a function of retirement rather than business closure, making way for the next generation of new independent retailers.
More jobs
In a further show of confidence when asked about staff and employment, 9% of members indicated that they were looking to increase their staff levels. This is welcome news for the economy and local employment, as all of these businesses are part of the community fabric, and fundamental to the stability of the local economy.
Consolidation
Business expansion plans are on the agenda for 6% of members, indicating that they are in the market to increase their network size.
At the lower end of the scale only 3% of members indicated that they were either looking to re-locate their business or refinance, suggesting a level of stability in their current financial position amongst the majority of independent retail members.
For many 2016 was a year to forget with global uncertainty on the back of the US election and Brexit, however, consumer confidence is now returning and all indications are pointing to a year of continued retailer investment.
Many small business owners are optimistic about the year ahead, and research conducted by Stock Box supports this optimism.
While 2017 will be a year of uncertainty within the retail sector; SMBs are showing positive signs of growth and increased expansion, which is welcome news for local economies and the independent retail industry in general.
Craig Matthews is the founder and Managing Director of Stock Box, a product sampling service for suppliers and manufacturers looking to increase their ranging and distribution within the independent channels. We make product sampling simple!
For more information email us at info@mystockbox.com.au or go to www.mystockbox.com.au