2 June 2016
Confidence levels among Australian small businesses ended 2015 on a good note, with the proportion of businesses expecting conditions to improve in the coming months rising to 44 per cent in the December quarter, according to the Australian Chamber of Commerce and Industry (ACCI). The boost could be accompanied by greater business investment, something that SMEs will need to account for in their business insurance policies.
In one of her final media releases before departing to become Australia's first Small Business and Family Enterprise Ombudsman, ACCI CEO Kate Carnell is cautiously optimistic, but notes there is still work to be done.
"The improvements to conditions are promising, particularly for revenue and employment [but] it is crucial the government makes it easier for small businesses to prosper, including by cutting red tape, easing the tax burden and encouraging businesses to hire staff," she says.
More confidence means more investment
When confidence is increasing, industry observers expect to see a comparable boost in business investment, particularly when it comes to buying new equipment and technology. The quarterly MYOB Business Monitor found that 21 per cent of companies around the country planned to increase their spending in IT systems and processes.
Speaking to the Huffington Post, MYOB Chief Technical Officer Simon Raik-Allen noted that while Australian SMEs had been somewhat slow to take to certain new technologies, new investment was expected to help them catch up.
"Forty per cent of SMEs are doing at least some of their business in the cloud, which shows that many are still sticking with tried and true methods," he says. "Based on MYOB's own record growth in cloud customers, we can expect the shift to the cloud to continue."
Any new equipment investments can lead to impressive benefits for your company, but it's important to discuss the addition of any new assets with your insurance agent. Having an accurate amount of cover for your business property insurance can help to protect you from potential financial losses down the line.