UNDER EMBARGO: FOR RELEASE TO PUBLIC ON THURSDAY 3 DECEMBER 2009
Victorian business to lead nation
Victorian small businesses are expecting the nation’s most favourable conditions over the
next 12 months, according to the Sensis® Business Index released today.
The quarterly survey began in 1993 and provides the latest snapshot of small and medium
enterprise (up to 199 employees) business activity in Australia. It is based on a sample size
of 1,800 from metropolitan and regional areas, interviewed between
30 October and 20
November 2009.
Report author Ms Christena Singh said sales and profitability rose in Victoria during the
quarter, and both are expected to improve further over the next 12 months.
“With three consecutive quarters of improvement in sales and profits, Victorian small
businesses are recovering strongly from the economic downturn.
“The upcoming Christmas quarter is not anticipated to be as good. However, the next 12
months are expected to bring buoyant conditions for Victorian small businesses.”
Business confidence in Victoria rose again during the quarter to be the strongest level since
May 2007.
Victoria’s building and construction and communication, property and business services
sectors are particularly bullish about their business prospects over the next 12 months.
However, confidence remains very low in the manufacturing sector.
“In line with improving conditions in Victoria, we have seen employment by small businesses
grow strongly during the quarter to far outstrip the national average.
“This is significant step, as it is the first positive employment reading in Victoria since May
2008.”
After achieving a strong result last quarter, capital expenditure was the only performance
indicator to fall.
Despite the positive outlook, small business’ rating of the Victorian Government fell
substantially. It is the nation’s fourth most supported state or territory government.
The main reasons businesses do not support the government are perceptions it does not
offer incentives to small business; a view that there is too much bureaucracy; and payroll
tax.
Being supportive of small business; encouraging training of apprentices; and putting money
into capital development are the key reasons businesses gave for supporting the Victorian
Government.
December 2009 Sensis® Business Index Victorian Key Indicators:
The business confidence indicator rose three percentage points to 55 per cent
Over the quarter, eight per cent of businesses decreased their workforce size, while
14 per cent increased staff numbers, with the remainder making no changes
The profitability indicator improved from two to three per cent
Support for the Victorian Government’s policies fell strongly, with the indicator down
from negative two per cent to negative 11 per cent
Demand for goods and services grew, with the sales indicator improving from
positive five to positive seven per cent
Capital expenditure fell, with the indicator down from positive 10 per cent to negative
10 per cent.
-ENDS-
For interviews with the report author or for further information contact:
De-Arne Carr on 03 9397 5677 or 0419 585 711
For further commentary from report author Christena Singh, visit
Sensis® Business Index is available now by contacting the above or can be downloaded
NEWS 
