bentleys the voice full report 19 sep2016

The Voice

Report on Bentleys’ The Voice survey – Wave 5

September 2016

PREPARED FOR:

2

BackgroundBentleys has a long history of providing accounting services to small and medium enterprises (SMEs) across Australia. As well as accounting services, Bentleys provides audit and assurance, business advisory, financial planning, taxation consulting, and corporate recovery services. Seeking to position the firm as a thought leader for the SME market, Bentleys commissioned The Voice in 2014, a long-term research project to follow and explore the mindset, needs, expectations, and concerns of its client base. Working with Empirica Research, the first wave of The Voice in early 2014 surveyed 1,510 SMEs Australia-wide, providing insight into the different perspectives of Bentleys key client industry sectors – agribusiness, health and ageing, education, and professional services. The survey covered business sentiment relating to confidence and employment, uptake of technology, and foreign investment. The second wave of The Voice, in late 2014, surveyed 328 micro, small, and medium enterprises in all industry sectors across Australia. The survey retained lines of questioning around confidence and employment, technology uptake, and foreign investment, and added an extensive section on tax, including GST. The third wave explored the taxation environment, responses to the 2015 Federal Budget, and future planning. The fourth wave covered expectations of the 2016 Federal Budget, risk management, digital disruption, and international trade.

This report covers the results of the fifth wave of The Voice, in which we look at:

• Business confidence and intentions for the coming months

• Attitudes towards and use of technology

• Interest in foreign investment

• Superannuation

2

Methodology• Online survey with 314 Australian SMEs conducted between Monday, 29

August 2016 and Monday, 12 September 2016, recruited via the LightspeedGMI’s online research panel

• Online survey with 14 Australian SMEs conducted between Monday, 29 August 2016 and Monday, 12 September 2016, recruited via direct invitation from Bentleys Australia

• To qualify, respondents had to be a decision maker in the SME

• Survey length approximately 10-12 minutes

5% (16)

1% (4)

11% (36)

26% (84)

28% (91)

25% (83)

ACT:1% (3)

3% (11)

3

The Voice – Feb-Mar 2016

• 314 businesses surveyed through a panel of businesses registered to Lightspeed GMI’s online research panel

• 14 surveys obtained through invitations to participate in the survey emailed to Bentleys clients

• Fieldwork for the survey lasted from Monday, 29 August 2016 and Monday, 12 September 2016

Number of businesses

• Employing micro, small, and medium businesses were the main focus of the survey

• Non-employing businesses (i.e., sole traders) and those employing more than 200 people were not included in the survey

Business size

micro: 1-4 employees small: 5-19 employees medium: 20-200 employees

• Businesses surveyed in all states and territories; with the majority located in New South Wales, Victoria, and Queensland

• 49% of businesses located in a capital city or surrounding suburbs (classified as ‘metropolitan’); 51% located outside of state capitals (in large cities or regional or rural areas, classified as ‘non-metropolitan’)

• Professional, scientific, and technical services (11%) and retail trade (11%) were the most highly represented industries

Business characteristics

51% 27% 23%

5% (16)

1% (4)

11% (36)

26% (84)

28% (91)

25% (83)

ACT:1% (3)

3% (11)

4

EXECUTIVESUMMARY

Executive Summary – The current SME environment

Larger SMEs are maintaining greater confidence than their smaller counterpartsMedium businesses continue to display greater levels of confidence in their short and longer term prospects than micro businesses, with small businesses demonstrating increased confidence in this wave of The Voice. Of note is that both micro and small businesses appear to have undergone a slight recovery in confidence after reaching a low point in February this year.

Growth is the goal for the coming year for small and medium businessesAs in earlier waves of The Voice, the most common goals held by surveyed businesses for the coming year were to improve profits and cash flow. Medium and small business respondents were more likely than micro to be planning for growth, indicating an expectation to hire new staff, introduce initiatives to attract new staff, and invest in new premises, equipment, and products and services. In comparison, a higher proportion of micro than small or medium businesses said that they were anticipating an exit from the industry in the next twelve months.

At present, the most common barriers that SMEs of all sizes are anticipating to their growth and success are the combination of the Australian economy, lack of consumer demand, and domestic competition, with red tape also a top three concern for small businesses.

Willingness to lean on external advice and guidance greater for larger businesses Overall, regardless of business size or location, SMEs are relying primarily on their own financial data and accountants to inform and influence their business decision making. Consistent with findings in previous waves, medium businesses are more strongly influenced by additional sources (market forecasts, external consultants, financers) than are small and micro businesses, and are more inclined to seek out external sources of insight and information to assist their business.

Outsourcing is occurring most commonly for accounting and IT supportAmong a selection of key business tasks (administration, bookkeeping, accounting, HR, marketing, accounting, and IT support), the majority of respondents indicated that these activities were taken care of in house – either by the respondent themselves (in the case of micro business respondents) or by a dedicated person or department (small and medium business respondents) – with only a small proportion of respondents reporting that the activity was outsourced. The exceptions to this pattern were accounting and IT support: accounting was reported to be outsourced by 36% of micro, 26% of small, and 21% of medium business respondents; IT support by 24% of micro, 49% of small, and 31% of medium business respondents.

5

Executive Summary – Technology

SMEs will generally apply technology once they feel it is needed, rather than proactively implement Overall, responding SMEs most commonly identified their organisations as being attentive to the existence of relevant technologies, without its implementation being a priority for its own sake – a specific need should arrive first:

• “We keep abreast of new technologies relevant to us, but it’s not a core focus of our growth” (40%)

• “We don’t take much interest in new technology and wouldn’t describe ourselves as innovative” (20%)

• “When we need a new technology solution, we will research and adopt” (17%)

• “We are very tech savvy and we proactively look for new and innovative technology to apply to our business practices” (13%)

• “We want to integrate new technologies into our business, but don’t have the resources to do so” (10%)

Mixed reception to the NBN Almost a third of surveyed SMEs reported having access to the National Broadband Network (NBN), with a higher proportion reporting access in non-metro areas. Many of those without access were not particularly worried about their lack of access – 43% said they were not at all concerned, and only 11% were very or extremely concerned. For those with access, estimations of its benefits to their business were a little lukewarm: 26% said it had been very or extremely beneficial, 45% said it was slightly or moderately beneficial, and 14% said it was too early to say. Fourteen percent claimed no benefit at all.

6

Impact of domestic events vs international Considering a range of recent and upcoming domestic and international events, it was most common for responding SMEs to claim no impact of these events on their businesses.

In the domestic arena, respondents were most hopeful for a positive impact from interest rate cuts (particularly small and medium respondents compared to micro) and the Federal Government re-prioritisation of the small business portfolio, were divided as to the positive or negative impacts of the falling Australian dollar, and were more inclined to expect negative than positive impacts as a result of the May 2016 Budget, the ‘slim majority’ election, and the threat of a downgrade to Australia’s credit rating.

There was little anticipation of positive impacts resulting from the suggested international events, but market volatility was the area of greatest concern, with 43% of respondents saying this would have a negative impact on their business. China’s slowdown and terrorist activity were also anticipated to have negative impacts on businesses.

Foreign investment continues to be of most interest to the larger, metropolitan businesses Those few responding businesses who were actively looking for foreign investment for their business were mostly interested in the US and China, with the most common goal of expanding their current business.

Expectations on Turnbull doing right by SMEs are generally low In terms of expectations of the Turnbull Federal Government acting on issues that matter for SMEs, responding SMEs were not particularly hopeful: 45% said they had low or very low expectations in this area, compared to only 16% with high or very high expectations.

The lack of expectation appears to have been driven by a range of factors, including lack of confidence for the Government to achieve action in any area due to the close election result, lack of confidence in the Government to take any action of value to the respondent at all, and perceptions of the Government being concerned only with the interests of big business (at the expense of SMEs).

SuperannuationAwareness of the detail of the proposed changes to superannuation was low – most respondents were aware that changes were being discussed, but little knowledge of the specifics.

With respect to how they felt they might be personally impacted by some of the specific changes, few anticipated any extreme impact from the increase in tax on concessional contributions for those with contributions over $250,000 (14% high or extreme impact, 56% no impact) or the $1.6 million superannuation transfer balance cap (12% high or extreme impact, 55% no impact). There was slightly greater concern about the lowering of the superannuation concessional contributions cap to $25,000 pa (16% high or extreme impact, 40% no impact), and the introduction of the $500,000 lifetime cap on non-concessional contributions (16% high or extreme impact, 47% no impact). At the time of writing, the proposal to introduce the lifetime cap has been recently scrapped.

Executive Summary – Domestic and international influences

7

8

THESTORY

Overall, more than half of SMEs are somewhat or extremely confident in their prospects over the coming 12 months; up from a dip in confidence seen six months ago. This improvement is mostly driven by the improved outlook of small businesses (micro and medium appear to be reasonably consistent).

Confidence is beginning to recover…

21%

14%

25%

16%

18%

40%

40%

34%

44%

41%

23%

25%

25%

24%

22%

13%

18%

15%

14%

16%

3%

3%

2%

3%

3%

Wave 5 (n=328)

Wave 4 (n=349)

Wave 3 (n=370)

Wave 2 (n=328)

Wave 1 (n=635)

Confidence in business prospects over next 12 months

Extremely confident Somewhat confident Neither confident nor worried Somewhat worried Extremely worried

3.47 3.453.32

3.54

4.11

3.71

3.3

3.76

4.45

3.943.79

3.68

Wave 2 Wave 3 Wave 4 Wave 5

Micro Small Medium

Extremely confident (5)

Somewhat confident (4)

Neither confident nor worried (3)

Somewhat worried (2)

Extremely worried (1)

Average confidence over next 12 months by time and business size

9

Greater expectations for larger businesses Small and medium businesses display greater confidence in their immediate and longer term prospects than micro businesses.

…but larger SMEs retain an edge on their smaller counterparts

10

19%23% 23% 22% 20%

37%

45%41%

40%41%

25%

21%23%

21%26%

17%8%

8%13%

12%

2% 3% 5% 4%2%

Micro(n=166)

Small (n=87) Medium(n=75)

Metro(n=161)

Non-metro(n=167)

Confidence in prospects over next 12 months

Extremely worried

Somewhat worried

Neither confident nor worried

Somewhat confident

Extremely confident

17%20% 19% 17% 19%

38%

46% 47%46%

38%

30%

24% 24%22%

32%

14% 6%9%

12%10%

1%5%

1% 2% 2%

Micro (n=166) Small (n=87) Medium(n=75)

Metro (n=161) Non-metro(n=167)

Confidence in prospects over October/November 2016

Extremely worried

Somewhat worried

Neither confident nor worried

Somewhat confident

Extremely confident

11

Start-ups, founders, and failures

Business history

The average age of all responding businesses was around 20 years, and was inclined to be greater for larger sized businesses.

A quarter of all businesses were happy to describe themselves as a ‘start-up’, with the tendency to do so greatest among young businesses. Interestingly, 13% of businesses more than 10 years old still considered themselves ‘start-ups’.

It was more likely for the survey respondent to be the sole or joint founder of the business if the organisation in question was a micro business – for small businesses it was less common, and for medium businesses only a small fraction of surveys were answered by a business founder. The average age of founding the business was 38 years.

Over half of respondents reported having been involved in another business in a owner/managerial capacity in the past – of these, only 16% indicated that a previous venture had ‘failed’. These respondents gave a variety of reasons for the failure of their previous enterprises (see below).

25%

63%

25%

13%

75%

37%

75%

87%

Total (n=328)

0-4 year old business (n=57)


11+ year old business (n=172)

Would you describe your business as a ‘start-up’?

Yes No

19%

27%

16%

4%

28%

37%

22%

13%

54%

36%

62%

83%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Are you the founder of your business?

Sole founder Joint founder Neither

11

Over extended in technology. Micro, other Queensland

Not financially viable. Medium, Brisbane

We moved out of the city area and postal rates were too high. Micro, other Queensland

We did not anticipate market change quick enough and demand dropped too quickly. Micro, other NSW

Economic downturn. Medium, Hobart

Government contracts that were tendered for not being renewed. Medium, Sydney

Lack of clients. Micro, other NSW

Lack of trade. Micro, other NSW

Lack of customers. Medium, Darwin

Competition. Small, other Queensland

Slow economy. Medium, Perth

Poor management. Micro, Canberra

Change in market prices and currencies. Micro, other Queensland

Foreign imports. Micro, Melbourne

Fruit fly. Small, other NSW

Withdrawal of vital contracts, product not sufficiently developed. Small, Sydney

12

Plans and barriers for the next 12 months

Acquiring new customers was the most commonly held intention for the next 12 months overall (49% of all businesses surveyed), followed by growing revenue (34%) and growing profits (32%). Overall, the main goals for businesses for the next 12 months (and consistent with the previous wave of research) were to improve profits (41%), and to improve cash flow (23%).

Larger SMEs planning for growth

• 57% of medium businesses and 39% of small businesses indicated that hiring new staff was something they anticipate doing in the next 12 months (compared to 10% of micro businesses)

• 11% of small and medium businesses (compared to 3% of micro businesses) expect to introduce new initiatives to attract staff

• 13% of medium businesses are planning to invest in new premises; 31% to invest in new products or services; 25% in new plant or equipment

• 17% of medium businesses and 10% of small businesses nominated upskilling existing staff as being the main focus for their business in 2017/18

But some micro SMEs are anticipating an exit

• 13% of micro businesses said that exiting the industry was something they thought their business would do over the next 12 months

Barriers to growth

The Australian economy is the most commonly perceived barrier to growth and success among SMEs, followed by domestic competition and low consumer demand. For medium and small businesses, staffing issues are also a concern – recruitment, retention, and skills shortages.

48%

28%

30%

10%

20%

16%

14%

10%

13%

3%

3%

3%

4%

1%

2%

17%

52%

39%

32%

39%

21%

24%

14%

16%

2%

11%

5%

3%

3%

5%

3%

9%

48%

39%

37%

57%

31%

28%

25%

15%

3%

11%

13%

8%

5%

4%

0%

8%

Acquire new customers

Grow revenue

Grow profits

Hire new staff

Introduce new products or services

Invest in new technology

Invest in new plant or equipment

Invest in marketing/advertising

Exit the industry (e.g., orderly closure or sale)

Introduce new initiatives to support youremployee value proposition (e.g., flexible

working; staff bonus scheme)

Invest in new premises

Obtain/seek specialised turnaround orrestructuring advice

Re-finance

Acquire a new business

Make formal appointment over business (e.g.,Administrator/ Liquidator)

None of the above

Micro (n=166) Small (n=87) Medium (n=75)

Micro

1. The Australian economy (34%)

2. Lack of consumer demand (22%)

3. Domestic competition (19%)

Top 3 barriers to growth and success by business size

Small


2. Red tape & Domestic competition (both 20%)

Medium


2. Domestic competition (20%)

3. Lack of consumer demand (19%)

13

Among our survey respondents, it was most likely that those from micro businesses were responsible for undertaking a range of business activities compared to small and medium enterprises, where it was more likely that there was a person or department in the organisation dedicated to admin, bookkeeping and accounting, HR, marketing/PR, or IT support. Medium businesses in particular were most likely to have dedicated personnel for key business tasks.

Over all sizes of business, outsourcing was most common for accounting and IT support.

Respondents most commonly nominated daily business management as the most challenging and most time consuming aspect for which they were responsible. There was generally a close correspondence between the proportion of respondents nominating an activity as the most challenging and those nominating it as the most time consuming. The exception to this was for accounting and marketing, which were called the most challenging activity by a higher proportion of respondents than for whom it was their most time consuming activity.

Day to day demands on SMEs

72%

71%

55%

49%

50%

41%

42%

54%

44%

31%

41%

34%

26%

21%

27%

35%

19%

19%

20%

16%

13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

The active daily management of the business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Do it myself


72%

71%

55%

49%

50%

41%

42%

54%

44%

31%

41%

34%

26%

21%

27%

35%

19%

19%

20%

16%

13%

0% 20% 40% 60% 80% 100%

The active dailymanagement of the

business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Do it myself

28%

28%

33%

27%

32%

26%

25%

55%

62%

57%

52%

45%

53%

28%

69%

63%

65%

68%

65%

65%

60%

0% 20% 40% 60% 80% 100%


business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Someone else in the organisation is responsible

2%

2%

13%

3%

3%

36%

24%

6%

3%

16%

7%

11%

26%

49%

5%

7%

13%

11%

8%

21%

31%

0% 20% 40% 60% 80% 100%


business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Outsourced

14

Impacts of domestic and international events

3%

3%

2%

2%

2%

2%

2%

2%

1%

1%

1%

1%

27%

22%

16%

10%

9%

5%

5%

7%

4%

7%

5%

6%

56%

61%

54%

62%

62%

70%

49%

64%

73%

77%

82%

81%

9%

10%

21%

22%

19%

18%

38%

25%

17%

13%

10%

9%

4%

4%

8%

4%

9%

6%

5%

3%

6%

2%

2%

2%

Recent interest rate cuts

The re-prioritisation of the small business portfolio by the Federal Government

The falling Australian dollar

The Federal Budget announced in May this year

The election of the ‘slim majority’ Turnbull Government

The threat of Australia’s AAA credit rating being downgraded

General market volatility

The slowdown of China’s economy

Terrorist activity

The upcoming US elections

Humanitarian issues (e.g., refugee crisis in Europe)

Brexit (UK exit from the European Union)

Impacts of domestic events on business

A significant positive impact A positive impact No impact A negative impact A significant negative impact

Impacts of international events on business

Interest rate cuts were the domestic events most commonly viewed by SMEs as likely to positively impact their businesses, followed by the re-prioritisation of the small business portfolio by the Federal Government. Small and medium businesses were more enthused than micro businesses about the interest rate cuts. Negative impacts were more commonly expected than positive from the outcome of the July election, and the downgrade threat to Australia’s AAA rating.

SMEs tended to be more blasé when it came to the anticipated impacts of international events. They held strong views on the impacts of general market volatility (44% believing it would have a negative impact on their business), China’s economic slowdown (28% negative impact), and terrorist activity (23% negative impact) –but more than three-quarters indicated anticipating no impact at all of the upcoming US election, Brexit, or humanitarian and refugee issues, on their business.

15

The Turnbull Government 2.0

2%

1%

1%

3%

1%

2%

15%

14%

17%

15%

12%

17%

38%

37%

39%

40%

43%

33%

27%

26%

28%

27%

27%

26%

19%

22%

15%

16%

16%

22%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Expectations of the Turnbull government to address issues affecting SMEs

Very high High Neither high nor low Low Very low

The balance of expectations of the recently elected Turnbull Government are weighted towards the low end when it comes to addressing the issues that affect SMEs – 45% of SMEs have low or very low expectations, compared to only 16% who have high or very high expectations (and 38% who are withholding judgment).

I have confidence in our Prime Minister - looking at continued investment innovation, FTA’s with our high growth neighbours and support for small business owners via tax offsets and incentives.Small, other Queensland

I'm expecting Malcolm Turnbull to have made some decisions on reducing the national debt while making sure we don't lose our AXA credit rating.Medium, other NSW

Not sure, but Turnbull is a business man with an optimistic outlook, so whatever ensues will be for the better good of all Australians.Medium, other Queensland

Would like to see stable government with positive ideas to help the economy and without dramas that cause the general public to feel unsure of the economy and tighten their spending. We always see a downturn in trade leading up to an election due to the public feeling uncertain and unwilling to commit to spending. Micro, other NSW

I expect him to stick to his promises of what he made to the Small Business Community. They keep Australia going and they are doing it tough right now.Small, Brisbane

Not a great deal with a minority government this will be the excuse for any positive actions not followed through, I have no faith in the government any more AT ALL.Micro, other SA

Nothing much as he has not got any majority in the senate and has his hands tied by some members of his own party.Small, Sydney

I wish him all the best for his success because of the non-supportive government. We are having hard times because of what we are in - with high government deficit, high spending with low revenue. We have to tighten our belts. Australians do not believe that we have to face the reality. We have had no hard times before and we are facing one now. We just do not know when. And that is the sure fact.Micro, Brisbane

I'm afraid not much. The lack of a Senate majority is going to be a significant issue in terms of moving forwards.Medium, other Victoria

Little - no decisions made as majority is too slim.Small, Brisbane

ABSOLUTELY NOTHING... Malcolm Turnbull is no more interested in helping small business than he is in taxing the largest non tax paying companies in Australia. Micro, other Queensland

As usual small business will be ignored and big business will get all the tax breaks.Micro, other SA

I don't think I will see anything from this. I'm no big business or executive.Micro, Brisbane

I am expecting to see very little. Budget cuts dominating everything, government not able to take a stand, no courage to address important issues, SME business actions will be too less too late.Micro, other NSW

I have little faith in the Turnbull government supporting small businesses.Medium, Brisbane

Nothing, there is never any interest in small business, only think about big companies in finance and tech. Nothing new for us.Micro, Melbourne

What are you expecting to see in the first 100 days of the Turnbull Government with respect to actions impacting the SME business community?

16

Use of and attitudes towards technology

We are very tech savvy and we

proactively look for new and innovative technology to apply

to our business practices

13%

We keep abreast of new technologies

relevant to us, but it’s not a core focus of

our growth40%

We want to integrate new technologies

into our business, but don’t have the

resources to do so10%

When we need a new technology solution, we will research and

adopt17%

We don’t take much interest in new technology and

wouldn’t describe ourselves as innovative

20%

How would you describe your organisation’s attitude towards technology? National Broadband Network (NBN)

Thirty-two percent of SMEs responding to the survey reported having access to the NBN. Among those without NBN access, 26% anticipated gaining access within the next year, while 31% thought that it would be more than a year (38% had no idea). Overall, however, there appeared to be little concern about the lack of access – 43% indicated they were not at all concerned, and only 11% were very or extremely concerned by their lack of access.

Interestingly, the proportion of SMEs reporting access to the NBN was lower in metro than non-metro areas (24% vs. 40%). Those without access in metro areas were more commonly uncertain as to when they would get access compared to those in non-metro areas (45% vs. 30%).

The most common way for SMEs to describe themselves when it comes to technology is that ‘We keep abreast of new technologies relevant to us, but it’s not a core focus of our growth’. Only 13% describe themselves as being proactive in looking for new ways to apply technology innovations to their business, and 20% don’t take much interest.

Around a third of SMEs (32%) report currently using cloud services in their business. Of these, around a quarter (26%) are planning to introduce more cloud services in the coming 12 months – 41% are not. Those intending to introduce new services in the next year most commonly anticipate the cost to be 3-5% of the business’ revenue.

http://www.nbnco.com.au/learn-about-the-nbn/rollout-map.html

NBN Network rollout map

The NBN network has had a negative effect on our business. The internet connection is slow, our EFTPOS had to be changed to a mobile service in order to work and when we have a blackout we lose our phones. On the old copper

network our phones worked whenever there was a blackout and the phone rental was less than what we have to pay now on the NBN. It is a big step backwards as

far as we are concerned and we are hearing the same story from other local businesses. – Micro, other NSW

17

Decisions, decisions

6%

4%

3%

3%

2%

2%

2%

25%

18%

14%

11%

12%

9%

8%

27%

34%

23%

22%

25%

21%

20%

24%

25%

19%

25%

26%

21%

21%

18%

19%

41%

39%

35%

47%

49%

The business’ financial data

Accountant(s)

Their financer(s)

Advisor(s)

Market forecasts

External consultants

Friends/ family

Influences on the business decision making process (n=328)

Completely Very much Moderately Somewhat Not at all

Overall, regardless of business size or location, the business’ own financial data and accountants had the strongest influence on business decision making.

Consistent with previous waves of The Voice, medium businesses were influenced to a greater extent than small or micro businesses by financial data, market forecasts, external consultants, and financers.

Medium businesses are also more inclined than smaller businesses to actively look for business insights – 77% do so in some way compared to only 61% of micro businesses. As businesses grow larger, reliance on friends and family declines and more formal sources of advice become more common.

39%

36%

23%

Micro (n=166)

Small (n=87)

Medium (n=75)

I don’t look for insights to help with my business

18

Foreign investment

There was little interest in foreign investment among surveyed businesses – what interest there was came from larger, metropolitan businesses.

Among those looking for foreign investment in their business, their interest was characterised by the following:

• Most commonly interested in the USA or Asia

• Most commonly looking for an investment amount in the vicinity of $1-$10 million

• Equally likely to be interested in a complete acquisition or merger

• The main goal generally to expand the current business

• If seeking advice, from an external consultant or financial advisor

• Have already taken steps to prepare the business

6%

4%

3%

15%

8%

4%

5%

3%

11%

4%

8%

3%

88%

93%

85%

81%

84%

93%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Currently seeking foreign investment

Yes I'm not sure No

Specific countries where investment is being sought:

60%

30%

25%

25%

10%

5%

Expand the existing business

Invest in technology

Pay off debt

Invest in upskilling staff

Something else

I’m not sure

Plans for for utilising foreign investment (n=20)

19

Superannuation and retirement

Most surveyed respondents were aware in a general sense that changes to superannuation were being discussed, but few considered themselves well informed about the detail of the proposed changes. Asked to consider the impacts of some of the specific changes, few anticipated any extreme impact.

5%

3%

5%

3%

11%

13%

9%

9%

15%

13%

10%

13%

11%

19%

9%

10%

47%

40%

56%

55%

11%

12%

10%

10%

Introducing a $500,000 lifetime cap for non-concessional contributions

Lowering the superannuation concessional contributions cap to $25,000 per annum

Requiring those with combined incomes and superannuation contributions greater than $250,000 to pay 30 per centtax on their concessional contributions, up from 15 per cent

Introducing a $1.6 million superannuation transfer balance cap on the total amount of superannuation that anindividual can transfer into retirement phase accounts

Personal impact of proposed changes to superannuation

Extreme impact on me High impact on me Moderate impact on me Some impact on me No impact on me I'm not sure

Surviving retirement

Fifty-seven percent of respondents reported having a ‘strategy’ for their retirement – most commonly involving reliance on savings (38% of those with a plan), income from rent or other investments (35%), and their age pension (28%).

Almost a quarter (24%) had a self-managed superannuation fund. Of these, 34% involve a financial advisor in running it, with 67% taking some involvement themselves (with our without the financial advisor).

20

Superannuation – in the news last week (15th September 2016)

http://www.theage.com.au/federal-politics/the-pulse-live/politics-live-as-samesex-marriage-and-super-haunt-malcolm-turnbull-20160914-grgmbm.html?sortOrder=LATEST&p=2

21

Superannuation – in the news last week (15th September 2016)

https://www.theguardian.com/australia-news/live/2016/sep/15/pauline-hansons-speech-draws-cross-party-criticism-politics-live?page=with:block-57d9f07de4b067ad30087d32#liveblog-navigation

22

General population SMEsOverall, awareness of Bentleys among surveyed SMEs in this wave of The Voice is in the second tier of accounting firms, sitting with Moore Stephens, and HLB Mann Judd.

Awareness of Bentleys in the financial services marketplace

16%

16%

17%

14%

15%

13%

10%

44%

19%

18%

16%

13%

11%

10%

10%

53%

13%

13%

12%

13%

9%

8%

5%

64%

RSM Bird Cameron

Grant Thornton

Pitcher Partners

PKF

Bentleys Australia

Moore Stephens

HLB Mann Judd

None of these

Which of the following accounting firms have you heard of?

Wave 3 (n=302) Wave 4 (n=302) Wave 5 (n=314)

22

23

APPENDIXFULL SURVEY

RESULTS

24

49%

20%

31%

A capital city or itssurrounding suburbs

A large city but not a stateor territory capital

A regional or remote area

Location

49%

20%

31%

A capital city or itssurrounding suburbs

A large city but not a stateor territory capital

A regional or remote area

Location

328 Australian SMEs

micro: 1-4 employees

51%

small: 5-19 employees27%

medium: 20-200 employees

23%

24

11%

11%

7%

6%

6%

6%

5%

5%

5%

5%

5%

5%

4%

3%

2%

2%

2%

1%

1%

1%

1%

8%

Professional, scientific, and technical services

Retail trade

Construction

Agriculture, forestry, and fishing

Wholesale trade

Education and training

Other services

Administrative and support services

Health care and social assistance (but not…

Manufacturing

Accommodation and food services

Transport, postal and warehousing

Financial and insurance services

Rental, hiring and real estate services

Arts and recreation services

Information media and telecommunications

Mining

Personal services

Public administration and safety

Electricity, gas, water and waste services

Aged care

Other industries

Industry5% (16)

1% (4)

11% (36)

26% (84)

28% (91)

25% (83)

ACT:1% (3)

3% (11)

State

25

Demographics

Sep 2016 Feb 2016 Jul 2015 Nov 2014

STATE N % N % N % N %

NSW 91 28% 111 32% 122 33% 119 36%

VIC 83 25% 91 26% 94 25% 88 27%

QLD 84 26% 76 22% 81 22% 69 21%

SA 36 11% 39 11% 29 8% 20 6%

WA 16 5% 14 4% 24 6% 18 5%

TAS 11 3% 7 2% 6 2% 11 3%

ACT 3 1% 11 3% 11 3% 2 1%

NT 4 1% 1 <1% 6 2% 1 0%

Total 328 100% 350 100% 373 100% 328 100%

Sep 2016 Feb 2016 Jul 2015 Nov 2014

INDUSTRY N % N % N % N %

Professional, scientific, and technical services 37 11% 42 12% 43 12% 48 15%

Retail trade 36 11% 32 9% 35 9% 41 13%

Education and training 19 6% 25 7% 25 7% 13 4%

Agriculture, forestry, and fishing 21 6% 23 7% 31 8% 17 5%

Construction 24 7% 20 6% 25 7% 16 5%

Administrative and support services 17 5% 20 6% 13 3% 9 3%

Rental, hiring and real estate services 9 3% 19 5% 14 4% 14 4%

Health care and social assistance (not aged care) 16 5% 17 5% 17 5% 12 4%

Accommodation and food services 15 5% 16 5% 16 4% 13 4%

Arts and recreation services 8 2% 15 4% 13 3% 12 4%

Financial and insurance services 13 4% 14 4% 18 5% 14 4%

Personal services 4 1% 14 4% 17 5% 12 4%

Manufacturing 16 5% 13 4% 24 6% 25 8%

Wholesale trade 20 6% 9 3% 21 6% 9 3%

Information media and telecommunications 5 2% 9 3% 10 3% 14 4%

Transport, postal and warehousing 15 5% 8 2% 12 3% 7 2%

Mining 5 2% 6 2% 3 1% 5 2%

Public administration and safety 2 1% 4 1% 3 1% 6 2%

Electricity, gas, water and waste services 2 1% 4 1% 1 0% 2 1%

Aged care 1 0% 1 0% 4 1% 3 1%

Other services 18 5% 14 4% 19 5% 19 6%

Another industry 25 8% 25 7% 9 2% 17 5%

Total 328 100% 350 100% 373 100% 328 100%

Sep 2016 Feb 2016 Jul 2015 Nov 2014

EMPLOYEES N % N % N % N %

1-4 166 51% 171 49% 167 45% 151 46%

5-19 87 27% 92 26% 109 29% 97 30%

20-49 39 12% 38 11% 41 11% 24 7%

50-99 22 7% 32 9% 35 9% 31 9%

100-200 14 4% 17 5% 21 6% 25 8%

Total 328 100% 350 100% 373 100% 328 100%

Sep 2016 Feb 2016 Jul 2015 Nov 2014

REGION N % N % N % N %

A capital city or surrounding suburbs 161 49% 192 55% 199 53% 188 57%

A large city but not a state capital 65 20% 65 19% 76 20% 66 20%

A regional or rural area 102 31% 93 27% 98 26% 74 23%

Total 328 100% 350 100% 373 100% 328 100%

Sep 2016 Feb 2016 Jul 2015 Nov 2014

POSITION N % N % N % N %

Owner 86 26% 160 46% 165 44% 149 45%

Partner 57 17% 69 20% 71 19% 68 21%

Director, and also shareholder 19 6% 32 9% 28 8% 27 8%

Director, but not shareholder 7 2% 12 3% 10 3% 3 1%

HR Director/ HR Manager 5 2% 6 2% 5 1% 7 2%

Senior Position (e.g., Management/ Executive role) 63 19% 50 14% 68 18% 57 17%

Other - management 42 13% 11 3% 14 4% 14 4%

Other – non-management (with at least some influence on day-to-day business decisions)

49 15% 10 3% 12 3% 3 1%

Total 328 100% 350 100% 373 100% 328 100%

26

Business operates outside of Australia

Q1.6. Does your organisation operate outside of Australia?

12%

12%

10%

15%

18%

7%

88%

88%

90%

85%

82%

93%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Yes No

27

Age of business

Q1.7. How old is your business?

17%

23%

13%

11%

14%

21%

30%

27%

37%

31%

35%

26%

52%

51%

51%

59%

52%

53%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

0-4 years 5-10 years 11+ years

28

Describes their business as a start-up

25%

27%

26%

21%

30%

20%

63%

25%

13%

75%

73%

74%

79%

70%

80%

37%

75%

87%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)



11+ year old business (n=172)

Yes No

Q1.8 Would you describe your business as a start-up?

29

38

41

33

30

38

38

Total (n=150)

Micro (n=106)

Small (n=32)

Medium (n=12)

Metro (n=71)

Non-metro (n=79)

Business founders

19%

27%

16%

4%

21%

16%

28%

37%

22%

13%

24%

31%

54%

36%

62%

83%

55%

53%

0% 20% 40% 60% 80% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Is the founder of their business

Sole founder Joint founder Neither

Q1.8. Are you the founder of this organisation?Q1.9. How old were you when you started your business? (free response)

Average age at which they founded their business (sole founders only)

30

Previous involvement in other businesses

2%2%

11%

43%42%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

10 or more6-94-52-31 only

The number of businesses previously involved in on a senior/decision-making level

(all respondents, n=328)

Q1.10. How many businesses have you been involved in over your lifetime in a senior/ decision-making capacity?Q1.11. [If Q1.11=Yes] Have any of these other businesses failed?

84%

5%

8%

2%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

No

Yes, after less than 1 year

Yes, after 1-5 years

Yes, after 5-10 years

Yes, after more than 10 years

If that business failed(previously involved in more than one business, n=191)

31

Factors influencing failure of previous business

Q1.12. What were the main reasons behind the failure of your other business? (involved in failed businesses)

Business industry is down so can't continue with a loss.Small, Brisbane

Change.Micro, other Queensland

Change in market prices and currencies.Micro, other Queensland

Competition.Small, other Queensland

Director of the company taking money out of business and not replacing.Medium, Melbourne

Disinterest of bankers.Micro, other SA

Economic downturn.Medium, Hobart

Economy.Medium, other WA

Foreign imports.Micro, Melbourne

Fruit fly.Small, other NSW

Government contracts that were tendered for not being renewed.Medium, Sydney

GOVERNMENT tariff changes.Micro, Brisbane

Increased government charges and taxes.Micro, Melbourne

Inflation.Micro, other Queensland

It went bankrupt and we lost all of our money.Medium, other NSW

Lack of clients.Micro, other NSW

Lack of customers.Medium, Darwin

Lack of trade.Micro, other NSW

Moved to another city.Medium, other Victoria

No money.Micro, Melbourne

Not financially viable.Medium, Brisbane

Over extended in technology.Micro, other Queensland

Poor management.Micro, Canberra

Resource limitation.Micro, Brisbane

Slow economy.Medium, Perth

Underfunded.Micro, Sydney

We did not anticipate market change quick enough and faced demand dropped too quickly.Micro, other NSW

We moved out of the city area and postal rates were too high.Micro, other Queensland

Withdrawal of vital contracts, product not sufficiently developed.Small, Sydney

Wrong place wrong time.Micro, other NSW

32

Business confidence in the short-term

18%

17%

20%

19%

17%

19%

42%

38%

46%

47%

46%

38%

27%

30%

24%

24%

22%

32%

11%

14%

6%

9%

12%

10%

2%

1%

5%

1%

2%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Confidence in immediate business prospects (October and November 2016)


Q2.0. To what extent do you feel confident or worried about your immediate business prospects (October and November 2016)?

33

Business confidence in the long-term

21%

19%

23%

23%

22%

20%

40%

37%

45%

41%

40%

41%

23%

25%

21%

23%

21%

26%

13%

17%

8%

8%

13%

12%

3%

2%

3%

5%

4%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Confidence in business prospects over next 12 months


Q2.2. To what extent do you feel confident or worried about your business prospects over the next twelve months?

34

Confidence in business prospects in the next 12 months – over time

Q2.1 To what extent do you feel confident or worried about your business prospects over the next twelve months? (All respondents)

21%14%

25%

16%18%

40%

40%

34%

44%41%

23%

25%

25%24%22%

13%18%

15%14%16%

3%3%2%3%3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Wave 5 (n=328)Wave 4 (n=349)Wave 3 (n=370)Wave 2 (n=328)Wave 1 (n=635)


35

Average confidence in business prospects in the next 12 months – over time


3.63

3.43

3.653.543.55

1

2

3

4

5

Wave 5 (n=328)Wave 4 (n=349)Wave 3 (n=370)Wave 2 (n=328)Wave 1 (n=635)

Average level of confidence






36

Average confidence in business prospects in the next 12 months – over time


3.47 3.45 3.323.54

4.11

3.71

3.3

3.76

4.45

3.943.79

3.68

1

2

3

4

5


Micro

Small

Medium






4.13

3.763.51 3.61

3.59 3.533.34

3.65

1

2

3

4

5


Metro

Non-metro






37

Likely business actions over the next 12 months

49%

34%

32%

28%

23%

21%

16%

13%

8%

7%

6%

4%

4%

2%

2%

13%

0% 10% 20% 30% 40% 50% 60% 70%


Grow revenue

Grow profits

Hire new staff






Introduce new initiatives to support your employee value proposition (e.g., flexibleworking; staff bonus scheme)


Obtain/seek specialised turnaround or restructuring advice

Re-finance


Make formal appointment over business (e.g., Administrator/ Liquidator)

None of the above

Q2.2. Do you think your business will do any of the following over the next twelve months? (multiple responses permitted; all respondents, n=328)

38

Likely business actions over the next 12 months – by size

48%

28%

30%

10%

20%

16%

14%

10%

13%

3%

3%

3%

4%

1%

2%

17%

52%

39%

32%

39%

21%

24%

14%

16%

2%

11%

5%

3%

3%

5%

3%

9%

48%

39%

37%

57%

31%

28%

25%

15%

3%

11%

13%

8%

5%

4%

0%

8%

0% 10% 20% 30% 40% 50% 60% 70%


Grow revenue

Grow profits

Hire new staff






Introduce new initiatives to support your employee value proposition (e.g.,flexible working; staff bonus scheme)



Re-finance



None of the above

Micro (n=166)

Small (n=87)

Medium (n=75)

Q2.2. Do you think your business will do any of the following over the next twelve months? (multiple responses permitted)

39

Likely business actions over the next 12 months – by location

48%

36%

34%

25%

25%

23%

11%

16%

7%

7%

7%

6%

4%

5%

2%

14%

50%

31%

31%

32%

21%

19%

22%

10%

9%

7%

5%

3%

4%

0%

1%

11%

0% 10% 20% 30% 40% 50% 60% 70%


Grow revenue

Grow profits

Hire new staff






Introduce new initiatives to support your employee value proposition(e.g., flexible working; staff bonus scheme)



Re-finance



None of the above

Metro (n=161)

Non-metro (n=167)

Q2.2. Do you think your business will do any of the following over the next twelve months? (multiple responses permitted)

40

Main business focus in 2017/2018

41%

23%

13%

8%

6%

2%

7%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Improve profits

Improve cash flow

Improve business value

Upskilling employees

Improve technology/ IT infrastructure

Improve solvency

Another area

Q2.3. What is the main focus for your business in 2017/2018? (single response; all respondents, n=328)

41

Main business focus in 2017/2018

46%

19%

14%

6%

8%

2%

5%

36%

28%

11%

10%

5%

1%

9%

0% 10% 20% 30% 40% 50%

Improve profits

Improve cash flow




Improve solvency

Another area

Main business focus in 2017/2018 – by location

Metro (n=161) Non-metro (n=167)

41%

24%

14%

2%

5%

2%

11%

43%

29%

9%

10%

7%

0%

2%

39%

16%

13%

17%

9%

3%

3%

0% 10% 20% 30% 40% 50%

Improve profits

Improve cash flow




Improve solvency

Another area

Main business focus in 2017/2018 – by size


Q2.3. What is the main focus for your business in 2017/2018? (single response)

42

Biggest concerns around business prospects over the next 12 months

23%

17%

16%

16%

8%

7%

5%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Cash flow

Growing revenue

Government regulations and compliance

Competition

Finding staff

Retaining staff

Something else

Nothing

Q2.5. In the context of your business’ prospects over the next twelve months, which of the following keep you up at night (i.e., your biggest worries)? (multiple responses permitted)

43

Biggest concerns around business prospects over the next 12 months

29%

23%

15%

17%

11%

6%

6%

25%

18%

11%

17%

15%

6%

9%

5%

35%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Cash flow

Growing revenue

Government regulations andcompliance

Competition

Finding staff

Retaining staff

Something else

Nothing

Biggest concerns around business prospects over the next 12 months – by location


23%

14%

14%

15%

4%

2%

8%

36%

21%

20%

16%

21%

11%

13%

2%

23%

27%

20%

20%

13%

13%

12%

3%

27%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Cash flow

Growing revenue

Government regulations andcompliance

Competition

Finding staff

Retaining staff

Something else

Nothing

Biggest concerns around business prospects over the next 12 months – by size


Q2.5. In the context of your business’ prospects over the next twelve months, which of the following keep you up at night (i.e., your biggest worries)? (multiple responses permitted)

44

Attitudes to the impact of Australian political and economic events on business - overall

3%

3%

2%

2%

2%

2%

27%

22%

16%

10%

9%

5%

56%

61%

54%

62%

62%

70%

9%

10%

21%

22%

19%

18%

4%

4%

8%

4%

9%

6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%







Attitudes to the impact of Australian political and economic events on business - overall


Q3.1a. How much of an impact do you think each of the following Australian political or economic events is going to have on your business (operations or confidence) in the near future?

45

Attitudes to the impact of Australian political and economic events on business –recent interest rate cuts

3%

4%

1%

5%

3%

4%

27%

19%

38%

35%

31%

24%

56%

61%

52%

52%

58%

55%

9%

11%

8%

5%

6%

12%

4%

6%

1%

3%

2%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




46

Attitudes to the impact of Australian political and economic events on business –the re-prioritisation of the small business portfolio by the Federal Government

3%

2%

2%

5%

3%

2%

22%

21%

26%

19%

22%

22%

61%

61%

60%

64%

60%

62%

10%

11%

10%

7%

12%

8%

4%

5%

1%

5%

2%

6%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




47

Attitudes to the impact of Australian political and economic events on business –the falling Australian dollar

2%

2%

0%

3%

1%

2%

16%

13%

22%

13%

13%

18%

54%

55%

56%

48%

58%

50%

21%

19%

17%

29%

21%

21%

8%

10%

5%

7%

7%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




48

Attitudes to the impact of Australian political and economic events on business –the Federal Budget announced in May this year

2%

2%

0%

3%

2%

2%

10%

6%

15%

15%

12%

8%

62%

64%

61%

57%

63%

60%

22%

23%

22%

20%

20%

24%

4%

5%

2%

5%

3%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




49

Attitudes to the impact of Australian political and economic events on business –the election of the ‘slim majority’ Turnbull Government

2%

0%

2%

4%

1%

2%

9%

7%

10%

13%

9%

10%

62%

63%

61%

59%

63%

60%

19%

16%

25%

17%

21%

17%

9%

13%

1%

7%

6%

11%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




50

Attitudes to the impact of Australian political and economic events on business –the threat of Australia’s AAA credit rating being downgraded

2%

0%

2%

4%

1%

2%

5%

4%

6%

7%

7%

3%

70%

73%

71%

61%

70%

71%

18%

14%

18%

24%

18%

17%

6%

8%

2%

4%

5%

7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




51

Attitudes to the impact of international political and economic events on business - overall

2%

2%

1%

1%

1%

1%

5%

7%

4%

7%

5%

6%

49%

64%

73%

77%

82%

81%

38%

25%

17%

13%

10%

9%

5%

3%

6%

2%

2%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



Terrorist activity




Attitudes to the impact of international political and economic events on business - overall


Q3.1b. How much of an impact do you think each of the following international political or economic events is going to have on your business (operations or confidence) in the near future?

52

Attitudes to the impact of international political and economic events on business –general market volatility

2%

2%

0%

4%

3%

1%

5%

3%

6%

11%

3%

8%

49%

52%

48%

44%

46%

52%

38%

40%

39%

35%

43%

34%

5%

4%

7%

7%

5%

5%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




53

Attitudes to the impact of international political and economic events on business –the slowdown of China’s economy

2%

1%

1%

3%

2%

1%

7%

6%

8%

8%

9%

5%

64%

66%

59%

65%

63%

65%

25%

23%

31%

23%

25%

25%

3%

4%

1%

1%

1%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




54

Attitudes to the impact of international political and economic events on business –terrorist activity

1%

1%

0%

3%

1%

1%

4%

3%

3%

5%

4%

4%

73%

73%

74%

69%

74%

71%

17%

17%

17%

16%

16%

17%

6%

5%

6%

7%

5%

7%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Terrorist activity



55

Attitudes to the impact of international political and economic events on business –the upcoming US elections

1%

1%

0%

3%

1%

1%

7%

7%

5%

9%

9%

5%

77%

77%

78%

75%

77%

77%

13%

13%

15%

12%

12%

14%

2%

2%

2%

1%

1%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




56

Attitudes to the impact of international political and economic events on business –humanitarian issues (e.g., refugee crisis in Europe)

1%

0%

0%

3%

1%

1%

5%

4%

5%

8%

6%

4%

82%

87%

85%

69%

82%

83%

10%

7%

8%

17%

10%

10%

2%

2%

2%

3%

1%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




57

Attitudes to the impact of international political and economic events on business –Brexit (UK exit from the European Union)

1%

2%

0%

1%

2%

1%

6%

4%

5%

12%

6%

7%

81%

85%

80%

73%

81%

81%

9%

7%

13%

11%

11%

7%

2%

2%

2%

3%

1%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




58


2%

1%

1%

3%

1%

2%

15%

14%

17%

15%

12%

17%

38%

37%

39%

40%

43%

33%

27%

26%

28%

27%

27%

26%

19%

22%

15%

16%

16%

22%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)


Very high expectations High expectations Neither high nor low expectations Low expectations Very low expectations

Q3.2. What are your expectations of the Turnbull Government in terms of successfully addressing the issues and concerns affecting the SME business community?

59

Expectations of the new Turnbull government’s first 100 days – some ideas

Q3.3 Prime Minister Malcolm Turnbull was sworn in for his second term on the 19th of July this year. The 100th day of this term will fall on the 26th of October. What are you expecting to see in the first 100 days of the Turnbull Government with respect to actions impacting the SME business community?

A easier business process and lower tax.Micro, other NSW

A growth and confidence in the market. Micro, other NSW

A positive swing in favour of the SME with more aid being given to the small businesses.Medium, Melbourne

A ruling on penalty rates. Very few budget measures passed.Medium, Hobart

Better interest rates.Micro, other Victoria

Better investment into smaller businesses, incentives for staff hiring.Small, Melbourne

Business & job growth.Micro, Sydney

Continued assistance for small business and encouragement of the business sector.Medium, other Tasmania

Cut tax rates.Micro, other NSW

Decrease interest rates for small to medium sized businesses.Micro, other Victoria

Engineering good ideas to help business thrive.Small, Brisbane

Growth funding to support innovation and reduce crowding out the market due to higher government spending not delivered by the market.Medium, Melbourne

Growth stimulus.Micro, other Tasmania

I have confidence in our Prime Minister - looking at continued investment innovation, FTA’s with our high growth neighboursand support for small business owners via tax offsets and incentives.Small, other Queensland

I'm expecting Malcolm Turnbull to have made some decisions on reducing the national debt while making sure we don't lose our AXA credit rating.Medium, other NSW

Improve business environment and national security.Micro, Brisbane

Improved economy... more jobs.Medium, other Victoria

Improved tax position for small business.Micro, other NSW

Improvement in the economy.Micro, other SA

Improvement in the whole of the country.Small, Adelaide

Increased Consumer confidence. Recession proof economy.Small, Adelaide

It is alright and will grow in employees.Medium, other NSW

Job growth.Medium, Adelaide

Less red tape for small businesses, more tax breaks.Micro, other Queensland

Less red tape to enable SME's to get on with the job! Too many regulations and tax compliances. A falling-out between the treasurer and the prime minister for sure. The removal of Barnaby Joyce - the worst senator ever with uncaring policies and blind eyes to the dreadful practices in live trade exports.Small, Hobart

Make big business pay outstanding tax debts to repair our economy. This would allow him to give small business a break.Micro, other NSW

More competitive tax system and incentives to grow workforce.Small, Adelaide

More help I hope.Micro, other NSW

More job opportunities, good money market value.Medium, other WA

More opportunity for business to grow.Small, Adelaide

Not sure, but Turnbull is a business man with an optimistic outlook, so whatever ensues will be for the better good of all Australians.Medium, other Queensland

60

Expectations of the new Turnbull government’s first 100 days – some ideas


Oh that's my birthday lol! I expect to see more tax relief for small businesses.Medium, Melbourne

Reduce company taxes.Small, Melbourne

Reduced corporate tax.Medium, other SA

Reduced government costs, closer to balanced budget.Micro, Brisbane

Some improvement in developing strategies for cutting down on welfare payments.Micro, other Queensland

Some innovative ideas & decisions.Small, other NSW

Start to work for the better Australian economy and stop mucking around pull your party into line and get on with the job.Micro, other NT

Tax concessions.Medium, other Queensland

Tax cut legislated.Medium, Adelaide

Tax cuts.Micro, other Queensland

Tax cuts!Micro, Melbourne

The economy improving, unemployment falling as more jobs are created. Small, Melbourne

To give everybody confidence to spend their cash.Small, other Queensland

To keep the promises he made.Micro, Brisbane

To support links between businesses and researchers to increase productivity and develop new products.Micro, Canberra

Would like to see stable government with positive ideas to help the economy and without dramas that cause the general public to feel unsure of the economy and tighten their spending. We always see a downturn in trade leading up to an election due to the public feeling uncertain and unwilling to commit to spending. Micro, other NSW

61

Expectations of the new Turnbull government’s first 100 days – not a lot


A lot of talk little action.Micro, other Queensland

Absolutely nothing of value. Government policy has been delegated to children with no practical business experience whose only focus is on securing a place in federal parliament. There is no capacity to think beyond the present and no capacity to consider the likely second and third order effects of policy decisions. this government and the one preceding it (and for that matter the current opposition) are totally without a coherent and inclusive vision for the future of Australia. PATHETIC.Micro, Melbourne

Absolutely nothing. He has failed to implement anything of significance to date. Micro, Melbourne

ABSOLUTELY NOTHING... Malcolm Turnbull is no more interested in helping small business than he is in taxing the largest non tax paying companies in Australia. Malcolm Turnball could be in office for 10000 days and he'd still do NOTHING for those that most need assistance.Micro, other Queensland

All talk no action and increasing red tape and taxes, costs.Small, other Queensland

As usual small business will be ignored and big business will get all the tax breaks.Micro, other SA

Continuing lack of policy and lack of leadership.Micro, other SA

Dodging of issues. Bluster.... Mostly inaction. Micro, other SA

Expecting nothing except broken promises and a harder time for the average Australian.Micro, Melbourne

Focus on the tax levels. Seems to also be focussing milk prices which seems a negative thing to do.Micro, Melbourne

I am expecting to see very little. Budget cuts dominating everything, government not able to take a stand, no courage to address important issues, SME business actions will be too less too late.Micro, other NSW

I do not expect change or improvement.Micro, Adelaide

I don't expect anything.Micro, other NSW

I don't know and not expecting anything. However, SME is the backbone for the Australian economy, the government should encourage the SME to sustain in the trade during the economic downturn by giving some tax cut or relevant incentives.Micro, Melbourne

I don't think i will see anything from this. I'm no big business or executive.Micro, Brisbane

I expect him to stick to his promises of what he made to the Small Business Community. They keep Australia going and they are doing it tough right now.Small, Brisbane

I expect to see absolutely no action on anything except same sex marriage.Micro, other Queensland

I expect very little as the Turnbull government is completely out of touch with very small businesses like mine. It is also completely out of touch from the real health industry, but supports the illness industry (big pharma, etc.).Micro, other Victoria

I have little faith in the Turnbull government supporting small businesses.Medium, Brisbane

Little or no assistance just extra heartache that the politicians will place upon us.Small, other SA

Lower business incentives with no growth in the local sector compounded by higher unemployment and general uncertainty regarding spending.Medium, Adelaide

Mainly negative impact and very little focus on SME business needs.Micro, other NSW

Mostly excuses.Micro, other NSW

None, really. It will be business as usual.Micro, other NSW

Not a great deal - will be lots of problems with such slim majority.Medium, other Tasmania

Not a great deal frankly.Micro, other Queensland

Not a great deal to short a timeframe.Micro, Melbourne

62

Expectations of the new Turnbull government’s first 100 days – not a lot


Not a great deal with a minority government this will be the excuse for any positive actions not followed through, I have no faith in the government any more AT ALL.Micro, other SA

Not a lot to be honest. he is probably just going to go along slowly and not make any rash decisions just yet.Small, Melbourne

Not much, his focus is generally on big business i.e. where he can line his own pockets with money.Micro, Melbourne

Not one thing - as usual the government do nothing but line their own pockets and absolutely nothing else!!!!Medium, Adelaide

Not very much as his venture so far seem to be old budget ides that have not worked before !Micro, Melbourne

Nothing - I had very high expectations for him as PM when he was elected but he has just been screwing everything up since he's been in and is looking worse and worse.Small, other SA

Nothing as he is a talker but nothing gets done.Medium, Adelaide

Nothing but whinging and bitching.Small, Brisbane

Nothing much as he has not got any majority in the senate and has his hands tied by some members of his own party.Small, Sydney

Nothing much. Holding the status quo and really looking at the states and the negative impact they are having on the party, e.g. NSW Greyhound industry and the impact on many SMEs.Micro, Sydney

Nothing substantial, expecting another 3 years of the same rubbish as the last 6 years.Medium, Adelaide

Nothing, there is never any interest in small business, only think about big companies in finance and tech. Nothing new for us.Micro, Melbourne

Total confusion, [they live in a different world, and have no idea about living a business life, except about making money and unfortunately not for Australia.]Micro, Perth

Unfortunately not much, we are the forgotten industry.Micro, other NSW

Very little as he is a very indecisive and untrustworthy person. He only thinks about the big end of town.Micro, other Queensland

Very little as nothing happened in the last 100 days.Micro, Brisbane

Very little change.Medium, Melbourne

Very little. It will take more time than 100 days to impact on the SME business community.Micro, other Queensland

63

Expectations of the new Turnbull government’s first 100 days – Other comments


Chaos.Micro, Brisbane

Confusion.Small, other WA

Constant bickering between the parties over non-significant issues, and not much real action on anything.Micro, other Queensland

Ditching the obsession with same sex marriage and getting on with reducing burdens on small business.Small, other Queensland

I expect the Coalition to get on with the job, and hope the ALP will grow up and respond to the party who has the guts to bring about a return to our financial prosperity.Small, other NSW

I wish him all the best for his success because of the non-supportive government. We are having hard times because of what we are in - with high government deficit, high spending with low revenue. We have to tighten our belts. Australians do not believe tat we have to face the reality. We have had no hard times before and we are facing one now. We just do not know when. And that is the sure fact.Micro, Brisbane

I'm afraid not much. The lack of a Senate majority is going to be a significant issue in terms of moving forwards.Medium, other Victoria

Little - no decisions made as majority is too slim.Small, Brisbane

Our biggest concern is uber and the impact of rideshare on the taxi industry. We can't believe that a company such as uber, who are outlawed in many countries, can come into Australia, not pay taxes, not comply with Australian laws then have the audacity to continue on with their operations to the detriment of the taxi industry. The taxi industry are paying their fair share but uber aren't. They are forcing the state and federal governments to lower the standards of the taxi industry so the rideshare industry can get a foot in the door. It is the taxi industry that has serviced the Australian communities for over 100 years and this interloper called uber are now reaping the rewards that quite rightly belong to the taxi industry.Micro, other Queensland

The leader of the country needs to have courage and to have some people not like them for the good governing of this country... turning over leaders and not letting them complete term is a great distraction for polls and ratings only… these people need to be in term for the whole 9 yards to make any small improvement to this country. BTW it is in such disarray it need stability which we have not had the past ten (10) years and I feel we are a laughing stock and not taken seriously on the world stage.Micro, Melbourne

The senate not being an obstruction to the government in getting the budget under control. The Senate to do its job with the Australian economy and what is good for Australia as its focus and get rid of stupid political self interest. Back the Government and scrutinise based on the good for Australia and stop putting stupid arguments up in lieu of smart scrutiny. The government to do what they said that they would do during the election campaign.Micro, other NSW

They move very little really, every change costs us more for services and goods, then there is more rules and changes to try to keep up with.Micro, other NSW

To follow through with the promises. he needs to go back to the parties conservation roots this will encourage small business. Try and get the company tax cuts through the senate and to push the building regulation policy through.Small, other Queensland

64

Describing technology use in the organisation

13%

40%

10%

17%

20%

0% 10% 20% 30% 40% 50%

We are very tech savvy and we proactively look for new and innovative technology toapply to our business practices

We keep abreast of new technologies relevant to us, but it’s not a core focus of our growth

We want to integrate new techonologies into our business, but don’t have the resources to do so

When we need a new technology solution, we will research and adopt

We don’t take much intereset in new technology and wouldn’t describe ourselves as innovative

Q4.1 Which of the following do you think best describes your organisation?

65

Describing technology use in the organisation

11%

36%

10%

20%

23%

10%

46%

9%

16%

18%

19%

43%

11%

13%

15%

0% 10% 20% 30% 40% 50%

We are very tech savvy and weproactively look for new and

innovative technology to apply to ourbusiness practices

We keep abreast of new technologies relevant to us, but it’s not a core focus

of our growth

We want to integrate new techonologies into our business, but

don’t have the resources to do so

When we need a new technologysolution, we will research and adopt

We don’t take much intereset in new technology and wouldn’t describe

ourselves as innovative

Describing technology use - by size


Q4.1 Which of the following do you think best describes your organisation?

16%

45%

9%

12%

18%

10%

35%

10%

22%

22%

0% 10% 20% 30% 40% 50%

We are very tech savvy and weproactively look for new and

innovative technology to apply to ourbusiness practices

We keep abreast of new technologies relevant to us, but it’s not a core focus

of our growth

We want to integrate new techonologies into our business, but

don’t have the resources to do so

When we need a new technologysolution, we will research and adopt

We don’t take much intereset in new technology and wouldn’t describe

ourselves as innovative

Describing technology use - by location


66

Has introduced cloud services over the last 12 months

21%

17%

17%

33%

22%

20%

8%

4%

8%

16%

8%

7%

72%

80%

75%

51%

70%

73%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Has introduced cloud services over the last 12 months

Yes I'm not sure No

Q4.2c. Did you organisation introduce any cloud services over the last 12 months?

67

Currently utilises cloud services

32%

29%

32%

39%

37%

27%

94%

15%

9%

4%

8%

21%

7%

11%

4%

59%

67%

60%

40%

55%

62%

6%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Introduced new services in last 12 months (n=68)

Did not introduce services in last 12 months (n=235)

Currently utilises cloud services

Yes I'm not sure No

Q4.2a. Does your organisation currently utilise any cloud services?

68

Has plans to introduce new cloud services in the next 12 months

13%

13%

10%

17%

18%

8%

34%

8%

26%

7%

27%

17%

34%

40%

24%

31%

34%

20%

33%

16%

60%

70%

55%

43%

58%

61%

32%

72%

41%

77%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Introduced new services in last 12 months (n=68)

Did not introduce services in last 12 months (n=235)

Currently use cloud services (n=105)

Do not currently use cloud services (n=193)

Has plans to introduce new cloud services in the next 12 months

Yes I'm not sure No

Q4.2b. Does your organisation have any plans to introduce any new cloud services to the business in the next twelve months?

69

Planned proportion of revenue to be invested in new cloud services in next 12 months

7%

47%

21%

7%

2%

16%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

1-2% 3-5% 6-10% 11-25% 26% or more I'm not sure

Planned proportion of revenue to be invested in new cloud service in next 12 months

Q4.3a. What proportion of your revenue is your organisation planning on investing in the introduction of these new cloud services in the next 12 months? (has plans to introduce new cloud services to the business in the next 12 months, n=43)

70

Able to access the National Broadband Network (NBN)

32%

28%

30%

43%

24%

40%

7%

5%

7%

12%

11%

4%

61%

66%

63%

45%

65%

56%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Able to access the National Broadband Network (NBN)

Yes I'm not sure No

Q4.4. Is your organisation able to access the National Broadband Network (NBN)?

71

Expecting to be able to access the NBN

6%

6%

5%

6%

3%

10%

9%

9%

5%

12%

7%

11%

12%

11%

15%

9%

13%

10%

31%

28%

29%

41%

26%

36%

6%

8%

4%

0%

7%

4%

38%

37%

42%

32%

45%

30%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=199)

Micro (n=110)

Small (n=55)

Medium (n=34)

Metro (n=105)

Non-metro (n=94)

Expecting to be able to access the NBN(respondents currently unable to access the NBN)

Within the next three months Within the next three to six months Within the next six months to a year More than a year away Never I'm not sure

Q4.5. When do expect that you will be able to access the NBN?

72

Impact of NBN on organisation

10%

13%

4%

13%

11%

10%

16%

11%

19%

22%

18%

15%

21%

11%

31%

28%

24%

19%

24%

28%

15%

25%

26%

22%

14%

21%

15%

3%

11%

16%

14%

17%

15%

9%

11%

16%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=105)

Micro (n=47)

Small (n=26)

Medium (n=32)

Metro (n=38)

Non-metro (n=94)

Impact of NBN on organisation(respondents currently accessing the NBN)

Extremely beneficial Very beneficial Moderately beneficial Slightly beneficial Not at all beneficial Too early to say

Q4.6. Thinking about your organisation’s access to the NBN, has its impact on your organisation been…?

73

Extent of concern about not being able to access the NBN

4%

5%

0%

6%

6%

1%

8%

8%

9%

3%

7%

9%

19%

17%

16%

29%

21%

17%

28%

26%

31%

29%

28%

29%

42%

44%

44%

32%

39%

45%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=199)

Micro (n=110)

Small (n=55)

Medium (n=34)

Metro (n=105)

Non-metro (n=94)

Extent of concern about not being able to access the NBN(respondents currently unable to access the NBN)

Extremely concerned Very concerned Moderately concerned Slightly concerned Not at all concerned

Q4.6. To what extent are you concerned about your organisation not being able to access the NBN?

74

Barriers to growth and success

30%

19%

19%

17%

16%

15%

15%

13%

12%

10%

8%

8%

7%

7%

6%

6%

6%

5%

5%

5%

4%

2%

3%

10%

0% 5% 10% 15% 20% 25% 30% 35%

The Australian economy

Domestic competition

Lack of consumer demand

Cash flow

Red tape

Taxes

Government policy

Cost of equipment/ tools/ machinery (including computers)

Staff wages

Cost of physical premises (e.g., rent)

The global economy

Lack of stable, long

Interest rates

Skills shortages

Access to funding

Retention of staff

Recruitment of staff

Exchange rates

Overseas competition

Keeping up with changing technology

Lack of succession planning

Lack of advice/ guidance

Another factor (please tell us what)

No barriers

Barriers to growth and success (percentages reflect an item selected in top 3 barriers)

Q6.1. Below is a list of a range of factors that might be barriers to an SME’s growth and success. Please select the three barriers that have the most significant impact on your organisation’s ability to succeed and/or grow.

75

Areas of responsibility - overall

57%

55%

41%

40%

39%

31%

30%

45%

45%

47%

43%

43%

42%

34%

4%

4%

14%

6%

6%

30%

32%

4%

2%

4%

16%

16%

3%

10%

0% 10% 20% 30% 40% 50% 60%


Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Areas of responsibility - overall

I do it myself A person or department within the organisation looks after it This is outsourced to someone outside of the organisation Not applicable

Q6.2. Who looks after the following areas for your organisation? (multiple responses permitted for each area of the organisation; all respondents, n=328)

76

Areas of responsibility – by size


72%

71%

55%

49%

50%

41%

42%

54%

44%

31%

41%

34%

26%

21%

27%

35%

19%

19%

20%

16%

13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Do it myself


72%

71%

55%

49%

50%

41%

42%

54%

44%

31%

41%

34%

26%

21%

27%

35%

19%

19%

20%

16%

13%

0% 20% 40% 60% 80% 100%


business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Do it myself

28%

28%

33%

27%

32%

26%

25%

55%

62%

57%

52%

45%

53%

28%

69%

63%

65%

68%

65%

65%

60%

0% 20% 40% 60% 80% 100%


business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support


2%

2%

13%

3%

3%

36%

24%

6%

3%

16%

7%

11%

26%

49%

5%

7%

13%

11%

8%

21%

31%

0% 20% 40% 60% 80% 100%


business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Outsourced

77

Areas of responsibility – by location


0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1


Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Do it myself


58%

58%

39%

39%

40%

32%

30%

56%

53%

42%

42%

38%

31%

29%

0% 20% 40% 60% 80% 100%


business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Do it myself

40%

42%

46%

39%

39%

41%

34%

49%

48%

48%

46%

47%

43%

33%

0% 20% 40% 60% 80% 100%


business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support


5%

4%

14%

8%

9%

31%

37%

2%

3%

13%

4%

4%

29%

28%

0% 20% 40% 60% 80% 100%


business

Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Outsourced

78

Extent to which each area of the organisation is challenging and time consuming

Q6.3. You said that you are directly involved in looking after these areas for your organisation. Please rank them in order from most to least challenging (1 is the most challenging area).Q6.4. You said that you are directly involved in looking after these areas for your organisation. Please rank them in order from most to least time consuming (1 is the most time consuming area).

48%

35%

23%

21%

18%

17%

16%

51%

22%

14%

26%

21%

19%

8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

The active daily management of the business (n=187)

Accounting (n=103)

Marketing/PR (n=128)

Bookkeeping (n=133)

Administration (n=182)

IT support (n=98)

Human resources (n=132)

Most challenging and time consuming areas

79

Most challenging and time consuming areas for those who handle directly – by size

Q6.3. You said that you are directly involved in looking after these areas for your organisation. Please rank them in order from most to least challenging (1 is the most challenging area).Q6.4. You said that you are directly involved in looking after these areas for your organisation. Please rank them in order from most to least time consuming (1 is the most time consuming area).

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1


Administration

Bookkeeping

Human resources

Marketing/PR

Accounting

IT support

Do it myself

Most challenging Most time consuming

43%

38%

29%

17%

14%

14%

7%

48%

22%

16%

26%

14%

14%

4%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

The active daily management of the business(n=120)

Accounting (n=68)

Marketing/PR (n=83)

Bookkeeping (n=92)


IT support (n=70)


Micro

60%

26%

7%

33%

21%

17%

25%

57%

17%

7%

30%

32%

17%

14%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%100%

The active daily management of the business(n=47)

Accounting (n=23)

Marketing/PR (n=30)

Bookkeeping (n=27)


IT support (n=18)


Small

80

Extent to which external sources inform business decision making processes - overall

6%

4%

3%

3%

2%

2%

2%

25%

18%

14%

11%

12%

9%

8%

27%

34%

23%

22%

25%

21%

20%

24%

25%

19%

25%

26%

21%

21%

18%

19%

41%

39%

35%

47%

49%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

The business’ financial data

Accountant(s)

Their financer(s)

Advisor(s)

Market forecasts

External consultants

Friends/ family

Extent to which external sources inform business decision making processes - overall


Q6.5. To what extent do each of the following inform your business decision making process? (all respondents, n=328)

81

Extent to which external sources inform business decision making processes –the business’ financial data

Q6.5. To what extent do each of the following inform your business decision making process?

6%

4%

5%

11%

4%

7%

25%

23%

25%

28%

26%

24%

27%

23%

24%

39%

30%

24%

24%

28%

28%

12%

20%

28%

18%

20%

18%

11%

19%

17%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Extent to which external sources inform business decision making processes


82

Extent to which external sources inform business decision making processes –accountants


4%

3%

3%

5%

2%

5%

18%

13%

24%

23%

19%

18%

34%

31%

31%

44%

40%

29%

25%

28%

23%

19%

22%

28%

19%

24%

18%

9%

17%

21%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)



83

Extent to which external sources inform business decision making processes –financer


3%

3%

1%

5%

2%

4%

14%

12%

11%

21%

14%

14%

23%

16%

29%

33%

24%

22%

19%

22%

20%

13%

20%

19%

41%

48%

39%

27%

40%

41%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)



84

Extent to which external sources inform business decision making processes –advisors


3%

3%

5%

2%

4%

11%

7%

15%

16%

10%

13%

22%

13%

29%

33%

25%

19%

25%

25%

25%

25%

27%

23%

39%

52%

31%

20%

36%

42%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)



85

Extent to which external sources inform business decision making processes –market forecasts


2%

2%

1%

4%

2%

2%

12%

7%

10%

24%

10%

14%

25%

22%

26%

31%

34%

17%

26%

30%

25%

19%

20%

31%

35%

39%

37%

23%

34%

35%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)



86

Extent to which external sources inform business decision making processes –external consultants


2%

1%

1%

3%

3%

9%

6%

7%

16%

7%

10%

21%

12%

30%

32%

27%

16%

21%

20%

20%

25%

22%

20%

47%

60%

43%

24%

43%

51%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)



87

Extent to which external sources inform business decision making processes –friends/family


2%

2%

1%

4%

2%

2%

8%

7%

6%

13%

5%

11%

20%

16%

24%

21%

24%

15%

21%

23%

23%

16%

20%

22%

49%

52%

46%

45%

48%

50%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)



88

Sources of insight to help with their business

27%

20%

19%

19%

13%

9%

6%

8%

34%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Advisors

Friend / family

Online media

Social networks

Newspapers

SME association

‘How to’ videos

Somewhere else

I don’t look for insights to help with my business

Sources of insight to help with their business

Q6.6. Where do you find insights to help with your business? (multiple responses permitted, all respondents, n=328)

89

Interest in attracting foreign investment

2%

2%

1%

1%

3%

5%

2%

3%

11%

6%

3%

9%

5%

11%

16%

13%

6%

13%

10%

16%

13%

14%

11%

72%

80%

68%

59%

63%

80%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Interest in attracting foreign investment

Extremely interested Very interested Moderately interested Somewhat interested Not at all interested

Q7.1. To what extent would you be interested in attracting foreign investment to your business?

90


6%

4%

3%

15%

8%

4%

5%

3%

11%

4%

8%

3%

88%

93%

85%

81%

84%

93%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)


Yes I'm not sure No

Q7.2. Is your organisation currently seeking foreign investment for your business?

91

Targeted markets

50%

15%

45%

10%

15%

10%

30%

45%

5%

10%

0% 10% 20% 30% 40% 50% 60%

USA

Europe

Asia

Middle East

I’m not sure

Interest in foreign markets(respondents currently seeking foreign investment, n=20)

Market currently seeking investment in Market seen as having the most opportunity for foreign investment

Q7.3a. Which market or markets are you seeking investment from? Q7.3a. And in which market do you see the most opportunity for foreign investment?

Specific countries where investment is being sought:

92

Interested value of investment

10%

45%

30%

5% 5%

0%

5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Less than $1 million $1 million to less than 10million

$10 million to less than $20million

$20 million to less than $50million

$50 million to less than$100 million

$100 million or more I'm not sure

Interested value of investment

Q7.4. Approximately what value of investment is your organisation looking for? (respondents currently seeking foreign investment, n=20)

93

External sources of advice for foreign investment

50%

40%

20%

5%

5%

5%

5%

5%

0% 10% 20% 30% 40% 50% 60%

Financial advisor

External consultant

Friends or family

Other businesses

SME networks

Other

I’m not sure

Have not sought advice

External sources of advice for foreign investment

Q7.6. Where have you sought advice from in relation to your organisation’s search for foreign investment? (multiple responses permitted; respondents currently seeking foreign investment, n=20)

94

Utilising funds from foreign investment

60%

30%

25%

25%

10%

5%

0% 10% 20% 30% 40% 50% 60% 70%

Expand the existing business

Invest in technology

Pay off debt

Invest in upskilling staff

Something else

I’m not sure

Utilising funds from foreign investment

Q7.7 If your organisation is successful in securing foreign investment, how do you plan to utilise the funds? (respondents currently seeking foreign investment, n=20)

95

Has taken steps to prepare for foreign investment

Q7.8. Has your organisation taken any steps to prepare the business for foreign investment? (respondents currently seeking foreign investment, n=20)Q7.9. What steps have been taken? (has taken steps to prepare for foreign investment, n=20)

75%

15%

10%

Taken steps to prepare for foreign investment(all respondents pursuing foreign investment, n=20)

Yes No I'm not sure

Additional classes and activities.Medium, Sydney

Contacted businesses.Medium, other NSW

Contacting investors.Micro, other Queensland

Find out migration rules.Medium, other WA

Package up relevant part of business.Small, Darwin

Promoting the business, marketing.Small, Melbourne

Talking.Medium, Melbourne

To improve the profits.Medium, other WA

Visits to China, Vietnam, Bangkok, and Israel.Micro, Melbourne

96

Opinion of the extent of support for Australian SMEs by Australia’s current foreign investment policy

3%

3%

2%

4%

3%

3%

16%

14%

7%

28%

16%

16%

36%

33%

43%

35%

37%

35%

13%

14%

16%

8%

14%

13%

7%

10%

3%

3%

7%

7%

25%

25%

29%

23%

24%

27%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=795)

Metro (n=161)

Non-metro (n=140)

Opinion of the extent of support for Australian SMEs by Australia’s current foreign investment policy

Very supportive Supportive Neither supportive or unsupportive Unsupportive Very unsupportive I'm not sure

Q7.10. In your opinion, is Australia’s current foreign investment policy supportive or unsupportive of Australian SMEs? (all respondents)

97

Level of awareness of the proposed changes to Australia’s superannuation system in the 2016-17 Federal Budget

9%

8%

8%

11%

12%

6%

41%

38%

41%

45%

42%

39%

33%

39%

30%

25%

30%

37%

17%

15%

21%

19%

16%

19%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Level of awareness of the proposed changes to Australia’s superannuation system in the 2016-17 Federal Budget

I have been following this issue closely and know a lot about the proposed changes

I am aware that changes are being discussed, and have a rough idea of what they are

I have heard that changes are being discussed, but I don’t know much about what they are

I didn’t know that there were any proposed changes

Q9.1. In the 2016-17 Federal Budget, the Government proposed a number of changes to Australia’s superannuation system. Which of the following best describes your level of awareness and knowledge of the proposed changes?

98

Opinion of the proposed superannuation changes - overall

5%

3%

5%

3%

11%

13%

9%

9%

15%

13%

10%

13%

11%

19%

9%

10%

47%

40%

56%

55%

11%

12%

10%

10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%



Requiring those with combined incomes and superannuation contributions greaterthan $250,000 to pay 30 per cent tax on their concessional contributions, up from 15

per cent

Introducing a $1.6 million superannuation transfer balance cap on the total amount ofsuperannuation that an individual can transfer into retirement phase accounts

Opinions on proposed changes to superannuation system - overall


Q9.2. Below is a list of some of the proposed changes to superannuation laws. How much of an impact do you expect each of these changes to have on you personally? (all respondents, n=328)

99

Opinion of the proposed superannuation changes –Introducing a $500,000 lifetime cap for non-concessional contributions

5%

5%

6%

4%

6%

4%

11%

11%

5%

20%

15%

8%

15%

8%

20%

24%

17%

13%

11%

10%

14%

11%

12%

10%

47%

57%

40%

32%

35%

58%

11%

9%

16%

9%

14%

8%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)



Q9.2. Below is a list of some of the proposed changes to superannuation laws. How much of an impact do you expect each of these changes to have on you personally?

100

Opinion of the proposed superannuation changes –lowering the superannuation concessional contributions cap to $25,000 per annum

3%

4%

5%

0%

6%

1%

13%

7%

17%

20%

14%

11%

13%

9%

14%

21%

16%

11%

19%

20%

17%

16%

19%

18%

40%

48%

31%

33%

32%

49%

12%

11%

16%

9%

14%

10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)




101

Opinion of the proposed superannuation changes - requiring those with combined incomes and superannuation contributions greater than $250,000 to pay 30 per cent tax on their concessional contributions, up from 15 per cent

5%

4%

3%

9%

7%

3%

9%

7%

10%

13%

9%

10%

10%

5%

14%

17%

13%

8%

9%

11%

6%

9%

10%

8%

56%

67%

51%

39%

50%

62%

10%

5%

16%

12%

11%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Requiring those with combined incomes and superannuation contributions greater than $250,000 to pay 30 per cent tax on their concessional contributions, up from 15 per cent



102

Opinion of the proposed superannuation changes - Introducing a $1.6 million superannuation transfer balance cap on the total amount of superannuation that an individual can transfer into retirement phase accounts

3%

4%

1%

5%

4%

2%

9%

4%

11%

16%

11%

7%

13%

10%

13%

21%

16%

10%

10%

9%

9%

13%

13%

7%

55%

67%

48%

35%

45%

64%

10%

7%

17%

9%

11%

9%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Introducing a $1.6 million superannuation transfer balance cap on the total amount of superannuation that an individual can transfer into retirement phase accounts



103

Has implemented The Australian Tax Office’s SuperStream system

32%

31%

36%

29%

34%

30%

26%

17%

29%

43%

23%

29%

42%

52%

36%

28%

43%

41%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total (n=328)

Micro (n=166)

Small (n=87)

Medium (n=75)

Metro (n=161)

Non-metro (n=167)

Has implemented The Australian Tax Office’s SuperStream system

Yes I'm not sure No

Q9.4. The Australian Tax Office’s SuperStream system was introduced in 2015. It is the system through which businesses must pay their employee superannuation guarantee contributions to superannuation funds. The deadline for small businesses to implement SuperStream is the 28th of October, 2016. Has your organisation implemented SuperStream yet?

104

The impact of implementing SuperStream on business - overall

26%

10%

2%

38%

25%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Savings in time spent on superannuation

Savings in resources allocated to administering superannuation

Other impacts

No impacts

Too soon to tell

The impact of implementing SuperStream on business

Q9.5. Since implementing SuperStream, what has been the impact on your business? (respondents who have implemented SuperStream in their organisation, n=104)

105

The impact of implementing SuperStream on business – by size and location

27%

4%

0%

43%

25%

16%

16%

0%

32%

35%

36%

14%

9%

32%

9%

0% 20% 40% 60% 80% 100%

Savings in time spent onsuperannuation

Savings in resources allocated toadministering superannuation

Other impacts

No impacts

Too soon to tell

The impact of implementing SuperStream on business -by size


Q9.5. Since implementing SuperStream, what has been the impact on your business?

26%

11%

0%

43%

20%

26%

8%

4%

32%

30%

0% 20% 40% 60% 80% 100%

Savings in time spent onsuperannuation

Savings in resources allocated toadministering superannuation

Other impacts

No impacts

Too soon to tell

The impact of implementing SuperStream on business -by location


106

Strategies for funding retirement

57% 43%

Has a strategy in place to fund retirement(all respondents, n=328)

Yes No

38%

35%

28%

25%

21%

19%

13%

11%

10%

3%

9%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Rely on my savings

Use income from rent or otherinvestment dividends

Use my age pension

Sell my current house and move into asmaller one (i.e., downsize)

Sell my business

Sell my investments

Buy annuities (lifetime or fixed

Partially sell my business (e.g. find anequity partner)

Use an inheritance

Sell my house and rent instead

Other

Type of strategy for funding retirement(has a strategy in place, n=186)

Q9.6a. Do you have a strategy in place to fund your retirement?Q9.6b. [If Q9.6a = Yes] What is your strategy?Q9.7. Are you confident that you will be able to afford the lifestyle you want in retirement?

48%52%

Confident in ability to afford their desired lifestyle after retirement

(all respondents, n=328)

Yes No

107

SMSF use

25%

75%

Has an SMSF(all respondents, n=328)

Yes No

67%

34%

7%

1%

2%

0% 10% 20% 30% 40% 50% 60% 70% 80%

I manage it myself

Financial adviser

Family member

Friend

Someone else

The person who manages their SMSF(has an SMSF, n=83)

Q9.8a. Do you have an SMSF? Q9.7. [If Q9.8a = Yes] Who manages your SMSF? (Multiple response permitted)

108

Awareness of accounting firms

13%

13%

13%

12%

9%

8%

5%

64%

0% 10% 20% 30% 40% 50% 60% 70%

RMS Bird Cameron

Grant Thornton

PKF

Pitcher Partners

Bentleys Australia

Moore Stephens

HLB Mann Judd

None of the above

Awareness of accounting firms

Q10.1. Which of the following accounting firms have you heard of? (Multiple responses permitted; all respondents not invited by Bentleys, n=314)

109

Final comments

If owners ran there small & medium businesses like politicians are running this country, adding so much more debt owners wouldn't be looking to support their own retirement as politicians are telling us. Politicians certainly don't do as they say, they just rip more retirement benefits from taxes paid. Micro, other NSW

Increasing GST would severely affect my business because of the prices I could charge and cash flow. Micro, Melbourne

It is the small and medium businesses in Australia that is keeping Australia going but we seem to be the "invisibles" who are consulted as a matter of course but put on the back burner when anything is needed to be done. We are expected to take care of ourselves and struggle but when governments, both state and federal, want to trot out a section of business that is to be lauded or pointed at it is the small business owners who are illuminated either in a positive or negative light. The $20,000 immediate write off of plant wasn't worth the paper it was written on because many small businesses don't buy plant or machinery every day worth $20,000 and they probably wouldn't be able to afford it anyway.Micro, other Queensland

Overseas investment is BAD for Australia and not needed.Micro, other NSW

Small business desperately needs help in this country.Micro, other Queensland

Small business is the heart of Australia,Micro, Melbourne

Small businesses need more attention and time out into them , then the big businesses.Medium, other Queensland

SME businesses would be much supported by tax exemptions for investments, superannuation donations.Micro, other NSW

The NBN network has had a negative effect on our business. The internet connection is slow, our EFTPOS had to be changed to a mobile service in order to work and when we have a blackout we loose our phones. On the old copper network our phones worked whenever there was a blackout and the phone rental was less than what we have to pay now on the NBN. It is a big step backwards as far as we are concerned and we are hearing the same story from other local businesses.Micro, other NSW

There was a lot of questions about employee wages, recruitment etc. but nothing about Industrial Relations Policies which are the biggest hindrance to most service based industries.Micro, Brisbane

Unless and until we get a government with a vision and a commitment to pursue that vision rather than respond willy nilly to the loudest wingers we are stuffed. infrastructure investment is urgently required to make our cities work. Interest rates must rise if we are to avoid deflation but a rise in interest rates will be positive boon to the economy not the downer that is implied by government policy. You only need to look at Japan to see what slavishly following a decreasing interest rate policy does o a country.Micro, Melbourne

Wages and taxation are the killers.Micro, other NSW

Way too many rules and regulations !!!! We just want to get on with running a small business.Micro, other Queensland