Starting the business
The desire for independence continues to be the most important reason why SME owners started their business, although this year fewer owners reported wanting a better work/life as a reason for starting their business (32% in 2011 versus 47% in 2010)
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Growing the business
Almost three-quarters (73%) of SMEs experienced some form of growth over the last two years, up from 68% in 2010. SME owners who plan their business are significantly more likely to experience revenue growth, with eight out of ten who planned their business experiencing growth over the last two years compared with six out of ten who did not plan. The largest group of SME owners reported growth in the range 1%-14%.
Impact of the Global Financial Crisis two years on
Consistent with the recovering economic conditions, in our 2011 studey SME owners recorded a marginally higher level of optimism about their company's medium-term prospects and appear to have a greater focus on growth and using external expertise to plan their future. SME owners maintained their high level of satisfaction with their decision to run their own business, which has been a featture of all out studies over the last five years.
Impact of government policies
Fewer than one in ten SME owners reported government policies impacted strongly on their businesses in the last 12 months, although over a third reported a low-to-moderate impact from the investment allowance, water policy, paid parental leave, stimulus package and Fair Work Australia policies.
Superannuation planning shortfalls
A majority of SME owners (57%) have no plans to invest a proportion of their retirement funds into superannuation after leaving the business or are undecided, although this figure declined by 9% from 2010. suggesting a marginally lower level of uncertainty associated with retirement planning compared with last year.
Under half of business owners (43%) will therefore invest some proportion of their retirement funds into superannuation after leaving the business, although this is up from 34% reported in 2010.