NEW RESEARCH: Small Businesses are Bringing Economic Stress Home

Despite increased hours and rising anxiety levels, many small businesses say they are holding up well

SYDNEY, Australia - 16 April, 2009 – More than a third (38 percent) of Australian small business (SMB) owners and managers report their business is currently struggling or worse, when compared to this time last year. Of those, nine in 10 say the health of their business is having a negative impact on their personal lives, according to a small business ‘stress survey’ commissioned by Microsoft Australia.

However, despite this, the survey revealed that nearly 60 percent of small businesses described themselves as healthy, with one in five expecting to continue investing in their people and replacing staff as necessary and only 6% are considering laying off employees.

“It appears that many small businesses have clearly been hit by the reality of the global economic downturn as many of Australia’s small businesses are feeling the pinch and experiencing increased stress in this climate of uncertainty,” said Inese Kingsmill, director of small and mid-market business, Microsoft Australia.

“However, the survey also found that a larger percentage of businesses are still healthy, which points to the resilience of the sector. While it’s challenging to look beyond the current economic circumstances, small businesses have an opportunity to look through the uncertainty and start preparing their businesses for the when the economy turns upwards.”

The March 2009 survey, conducted by Galaxy Research, interviewed owners and managers of SMBs throughout Australia and measured their level of stress relative to the challenges they are facing in today’s business environment. The research has painted a clear picture of what Australian small businesses are prioritising in today’s economic climate.

“Microsoft is constantly talking to our small business customers and what we’ve learned from our study supports what we’ve been hearing. The three key themes that are coming through loud and clear for managing through the uncertainty are: managing cash flow; reducing costs, and maintaining customers,” said Ms Kingsmill.

The survey also found that more than half (56 percent) of Australian SMBs say that business pressures are more stressful this year than last year, with more than a third (35 percent) reporting that they are working longer hours now when compared to the time they put in prior to the global economic downturn. For almost half, (42 percent), the primary focus at the moment is simply retaining and growing their customer base.