1. The Voice of Australian Business 2016
Mark Chapman – CEO
The Bentleys Network

3. What is The Voice?
The Voice of Australian Business is a long term research project that follows and explores the mindset, needs, expectations and concerns of the Small to Medium (SME) business environment in Australia. The survey is conducted online with business owners, ‘C’ suite or Directors (decision makers) who are remunerated for their time. The survey has been carried out twice a year since 2014 and each survey examines key areas of SME concerns yet retains lines of questioning around business confidence, growth and technology. This is the fIfth ‘Voice’ survey and the data represents what SMEs are telling us.

4. Why does Bentleys collect this data?
There are 2,121,235 businesses in Australia
Of which 2,045,333 are SMEs
They produce over 90% of GDP
They provide approx. 69% of the workforce
Source Australian Bureau of Statistics 2015
SMEs feel that they do not have a ‘Voice’
A professional services firm needs to understands its clients concerns.
Bentleys/MBA wants to position itself as a ‘thought leader’

5. Running an SME is……..

6. The Voice Surveys The Voice 1 April 2014 The Voice 2 November
August
2015
The Voice 4
March
2016
The Voice 5
October
Business Confidence
The Dining Boom
Attitudes to Tax and GST
Challenges for SMEs
Risk Management
The budget Review 6 months on
Technology concerns
Technology – why the slow uptake?
Investment in Technology
Digital Disruption
NBN and Technology
Foreign Investment
Knowledge of Foreign Investment
Access to Funding
Cross Cultural Challenges
Domestic and International Influences
Industrial relations
The emergence of The Micro Business
Succession Planning and Superannuation
The Budget Expectations and the SME Environment
Superannuation and Retirement

7. The Voice Surveys The Voice 1 April 2014 The Voice 2 November
August
2015
The Voice 4
March
2016
The Voice 5
October
Business Confidence
The Dining Boom
Attitudes to Tax and GST
Challenges for SMEs
Risk Management
The budget Review 6 months on
Technology concerns
Technology – why the slow uptake?
Investment in Technology
Digital Disruption
NBN and Technology
Foreign Investment
Knowledge of Foreign Investment
Access to Funding
Cross Cultural Challenges
Domestic and International Influences
Industrial relations
The emergence of The Micro Business
Succession Planning and Superannuation
The Budget Expectations and the SME Environment
Superannuation and Retirement

8. Aim To give you an insight in to the main findings.
To identify trends and challenges
To brief you on the latest findings
To ask you what we should ask next!.

9. What is an SME?

10. Definitions? Metro – A capital city or its surrounding suburbs
Non-Metro – a non state or territory capital or a regional or remote area
Medium: employees
Small: 5-19 employees
Micro: 1-4 employees

11. Data Available

12. The Voice 1 – April 2014 We gained insights into:
The potential and mood of agriculture – where they are falling behind and how we can help prepare them for ‘The Dining Boom’
All important business confidence – are things finally on the up?
Wide spread misconceptions about foreign investment – how much of Australian business is actually Australian?
Fears and opportunities about technology especially The Cloud – which sectors have their head in the clouds about The Cloud
Strong feelings on industrial relations – how well are we working?

13. The Voice 1 – Ignorance or Xenophobia
The Voice 1 – Ignorance or Xenophobia?? What proportion of GDP comes from FDI?

14. Queensland key take outs
The top strategy among QLD SMEs to become more resilient is to work longer hours (33%) followed by improving productivity (30%) and diversification (26%)
A quarter of QLD SMEs are expecting a business decline - low confidence in QLD
Only 44% familiar with cloud computing are using it for a service other than

15. The Voice 2 – November 2014 Understanding Tax

16. What makes Tax hard to understand?

17. The Voice 3 – August 2015 Business Confidence Comparison of recent data

18. The Voice 3 - Evidence suggests that SMEs are finally embracing technology

19. The Voice 4 - March 2016 Risk Management and where to go for advice

20. The Voice 4 – Source of information to inform decision making

21. The Voice 5 – October 2016 What did we learn?
Larger SMEs are maintaining greater confidence than their smaller counterparts – but Small and Micro improving
Growth is the goal for the coming year for small and medium businesses
Willingness to lean on external advice and guidance greater for larger businesses
Outsourcing is occurring most commonly for accounting and IT support
SMEs will generally apply technology once they feel it is needed, rather than proactively implement
Mixed reception to the NBN
Trump, Brexit, Terrorism –not a concern, but market volatility is
Expectations on Turnbull doing right by SMEs are generally low
Awareness of proposed changes to Superannuation is low

22. Confidence is beginning to recover

23. Confidence in business prospects over the next 12 months

24. This confidence leads to… likely business action

25. This confidence leads to… an opportunity – a touch point

26. Trends over time – 12 months

27. What was wanted from the Budget?

28. What did you get from the Budget?

29. What affects Confidence?

30. Brexit, Terrorism, Refugees, the US Election and the Turnbull Government

31. Attitudes to the impact of international political and economic events

32. Not much faith in the Turnbull Government

33. Mixed views from SMEs
Expectations of the new Turnbull government’s first 100 days
Constant bickering between the parties over non-significant issues, and not much real action on anything.
Micro, other Queensland
Growth funding to support innovation and reduce crowding out the market due to higher Government spending not delivered by the market.
Medium, Melbourne
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
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, Queensland
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.
Micro, other NSW
Improved economy … more jobs
Medium, other Victoria
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
More competitive tax system and incentives to grow workforce.
Small, Adelaide
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

34. The life of an SME

35. Age of the Business

36. Describes their business as a start-up

37. Founders and Sole Founders

38. Age of Sole Founders

39. Previous involvement in other businesses

40. Previous involvement in other businesses that have failed?

41. 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, Queensland
It went bankrupt and we lost all of our money.
Medium, other NSW
Lack of customers.
Medium, Darwin
Lack of trade.
Micro, NSW
Over extended in technology.
Micro, Queensland
Poor management.
Micro, Canberra
Slow economy.
Medium, Perth
We did not anticipate market change quick enough and faced demand dropped too quickly.
Micro, NSW
We moved out of the city area and postal rates were too high.
Withdrawal of vital contracts, product not sufficiently developed.
Small, Sydney
Competition.
Small, Queensland
Director of the company taking money out of business and not replacing.
Medium, Melbourne
Disinterest of bankers.
Micro, SA
Economic downturn.
Medium, Hobart
Foreign imports.
Micro, Melbourne
Cyclone/fruit fly

42. Risk Management Do you have a formal Risk Management process?
The top business risks for SMEs

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

44. Strategies for funding retirement

45. SMSF use

47. The Voice of Gold Coast Business

48. QUESTIONS?