A significant number of small and medium enterprise (SME) owners are calling for tax cuts amid continued market uncertainty, according to a new study from digital credit reporting bureau CreditorWatch.
CreditorWatch surveyed over 280 SME business owners between July and August 2021 about the top three challenges they face this year.
Last year, the top three challenges were border closures and lockdowns (50%), uncertain market conditions (49%), and supply chain management (32%).
This year, the survey revealed that uncertain market conditions (58%) and border closures and lockdowns (53%) remained in the top two positions, while managing staff (32%) replaced supply chain management concerns moved into the third spot.
When asked how the government can better support businesses, 55% of the respondents said to lower company tax rates, 43% said to open the borders, and 37% said to reduce red tape.
“Business owners are finding it extremely difficult to develop and execute growth strategies when they’re confronted by so much uncertainty in their everyday operating environments,” said Patrick Coghland, chief executive officer at CreditorWatch. “Hiring, purchasing of stock and investment in technology, and other assets have all been thrown into disarray. Businesses desperately need goalposts to aim at, even if they’re 12 months away.
However, despite heightened concerns, data from the study showed that 44% of business owners “remain optimistic about the future” while only 15% perceive the current conditions negatively.
This optimism translates to 44% of business owners having plans to invest in the near-term. Broken down, 44% of them are looking to invest in staff recruitment and training, 40% in technology and 20% in increased marketing spend.
“Once Australia gets through these lockdown periods, the economic and financial bounce back will be large and swift,” said Coghland. “It’s a very challenging environment without an end game but there will be one and those businesses surviving are preparing for that ‘end day.’”
