Report: Most businesses expect positive revenue growth

WHILE businesses are still recovering from a tough financial year to June 30, more than half expect positive revenue growth this year, a survey of Australian business growth has found.

The Servcorp Australian Business Growth Monitor found nearly four out of five businesses experienced "significant barriers to growth" in 2012-13.

It also found 42% had "difficult economic conditions" and 33% experienced a fall in consumer spending last fiscal year.

But the survey also found nearly two-thirds (60%) were expecting a better year, and a third of businesses which felt a fall in revenue in 2012-13 were expecting a turnaround this year.

Despite the gloomy outlook, Servcorp chief operating officer Marcus Moufarrige said forecasts were in line for broader optimism about the economy.

"The Reserve Bank of Australia is predicting modest growth, and that many sectors of the economy - such as consumer spending, exports and borrowing - will strengthen as we move through the next financial year," he said.

"But it's how companies will drive this growth that is critical."

The survey came after the Australian Industry Group released its top five priorities for the federal election, with industrial relations reforms number one.

AIG chief executive Innes Willox said the AIG surveyed more than 330 businesses across several sectors on their policy priorities.

He said nearly a quarter of those surveyed said industrial relations as their top priority, with manufacturers putting it on the top of their list.Top Election Priorities for Business:

  • Industrial relations reforms
  • Reducing red tape
  • Reducing company tax rates and tax reform
  • Infrastructure investment
  • Encouraging workforce skills and training

SOURCE: AIG survey, 2013.