Entrepreneurship spotlight: SMEs seek to expand

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New research from MYOB has revealed a healthy preference among Australian SMEs for owning multiple businesses.

The company’s latest monthly SME Snapshot, which surveys a section of its 1.2 million customers, found 25% are operating more than one active business, with the average being 2.5 businesses.

And the entrepreneurial spirit seems alive and well among SME operators with 16% of respondents indicating they want to start a new business or another new business.

The top two reasons for starting additional businesses include the creation of new revenue streams (66%) and the offer of greater financial security (57%).

MYOB CEO, Tim Reed, says the results indicate that the current business climate is a positive one.

“Our small and medium business owners are telling us that growth isn’t something to be scared of,” Reed says.

“It’s clear that business growth equates to a stronger financial standing in the mind of most SMEs, something that is outweighing the perceived risk factor in starting a new business.”

And with Christmas fast approaching, the survey also highlights 26% of SMEs will either only be taking the public holidays off over Christmas, or no time off at all.

“The Christmas period is a busy one for business owners, particularly in the retail and hospitality sectors,” Reed notes. “Outside this, the New Year also means evaluating processes and cash-flow, and planning for the year ahead, so for many owners the busiest part of the year is waiting for them in the next few weeks.”

As for the business outlook for the year ahead, it’s predominantly a positive one for the nation’s SME sector – 64% of respondents feel optimistic about their business’ success in 2017, with just 10% feeling pessimistic.

“As the year draws to a close, it’s great to know that business owners are not only positive about next year, but also thinking about business expansion into the new year,” Reed concludes.


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