It has been tough for many companies as 51 per cent reported they have not had any revenue increase during FY13, according to Servcorp’s Australian Business Growth Monitor.
Servcorp surveyed 441 executive managers and business owners of Australian companies. Forty-two per cent said difficult economic conditions was a main barrier to achieving revenue growth, followed by a reduction in consumer spending (33 per cent) and increased local market competition (26 per cent).
“Challenging economic conditions are nothing new; businesses have been grappling with the global financial downturn for a while now,” Marcus Moufarrige, Servcorp’s chief operating officer, said in a statement.
“What’s more concerning is the lack of support from the current government and the nervousness of Australian business owners to take steps to drive growth, despite the tough climate.”
Sixty-two per cent said they are not happy with the level of support they receive from the current Federal Government. Forty-five per cent believe their businesses would be better off under a Coalition government, with 37 per cent saying it wouldn’t make any difference and 18 per saying it would make things worse.
The survey also found nearly half of companies missed out on a major deal in the past year. Twenty-three per cent said they were outdone by competitors when it came to price for their products and services. Being seen as “too small” was also a disadvantage when it came to closing deals for 13 per cent of companies, with 11 per cent saying their small sized companies were not seen to be able to scale up operations fast enough.
However, 60 per cent of companies are optimistic that they will be able to make some revenue growth in the next 12 months, partly by using technology to increase productivity and enhance products and services.
The survey found 37 per cent will upgrade their website, 33 per cent will develop a social media strategy, 20 per cent will invest in cloud services and 19 per cent will invest in mobile devices.
“Greater efficiency comes down to finding smarter ways to run your business, not just reducing overheads and cutting costs. Technology plays a critical role in increasing productivity, and real growth will come from taking advantage of that technology to service larger export markets, such as those in Asia,” said Moufarrige.
“To grow you can’t afford to stand still – companies willing to be more aggressive with their expansion plans and invest are most likely to emerge as winners in the growth stakes.”
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