BCCI Small Business Confidence Monitor

Transcription

1 BCCI 2016 Small Business Confidence Monitor 65 surveyed (true sample size of Broome businesses 55 or 5% of bus. population) 18 July Aug 16

2 According to 2012 report, the economy of Broome is reliant on tourism, with retail trade, transport, accommodation and food services contributing roughly 30% to GRP and employment in the area. The tourism sector is highly seasonal, which means that many businesses operate at very high levels during peak season and then business falls significantly during the low season. These fluctuations can make it difficult to provide for a sustainable economy.

3 Tourism equates to: Retail trade (6%) Transport (19%) Accom & food (4%) 29% total GRP

4 Sectors responded to the 2016 Small Business Confidence Monitor Business Sectors Real Estate & Leasing (4) Retail Trade (9) Hospitality (cafe, restaurant, catering) (2) Accommodation (4) Tourism & Leisure (3) Health & Community Services (8) Business services (consulting) (5) Transport (3) Trades & Services (13) Banking & Finance (1) Construction Manufacturing (4) ICT (1) wholesale (3) Education & Training (1) Mining (1) Hairdressing (1)

5 Question: How has your business performed over the last 12 months compared to the year before?: 59% performed same or stronger. Business performance past 12 months What are the factors for 41% who performed weaker in 2015/16? 30% 29% 41% Weaker Same Stronger

6 Question: Thinking about the growth prospects of your business for the next 12 months, would you say you are Growth prospects over the next 12 months Weak business performance (41%) = weak optimism (45%) Weak optimism deters growth and investment in business. 45% 25% 30% More optimistic Same as previous year Less optimistic Strong business performance (30% = strong optimism (30%)

7 Confidence by sector - RETAIL: Retail Retail respondents 7/12 recorded a business performance of same or better. 6/12 more optimistic about the future. 53% Weaker Same Stronger Less Same More Yes No Bus. Performance 12 months Prospects for next 12 months Increased turnover?

8 Confidence by sector - HOSPITALITY: Hospitality Only 2 hospitality respondents (cafes, restaurants, catering) Both recorded a stronger business performance, and increased turnover in the past year. 100% Weaker Same Stronger Less Same More Yes No Bus. Performance 12 months Prospects for next 12 months Increased turnover?

9 Confidence by sector REAL ESTATE: Real Estate Real estate a 50/50 split in turnover. Optimism low at same or less. 67% Weaker Same Stronger Less Same More Yes No Bus. Performance 12 months Prospects for next 12 months Increased turnover?

10 Confidence by sector HEALTH: Health Health respondents 6/9 recorded a performance of same or stronger in past 12 months However downturn in optimism with less with 7/9 same or less confident in next 12 44% Weaker Same Stronger Less Same More Yes No Unsure Bus. Performance 12 months Prospects for next 12 months Increased turnover?

11 Confidence by sector TRADES & SERVICES: Trades Trades & Services very low in 28% Weaker Same Stronger Less Same More Yes No Unsure Bus. Performance 12 months Prospects for next 12 months Increased turnover?

12 Confidence by sector CONSTRUCTION: Construction Construction very low in 8% Weaker Same Stronger Less Same More Yes No Bus. Performance 12 months Prospects for next 12 months Increased turnover?

13 Confidence by sector ACCOMMODATION : Accom Accommodation low at 13% Weaker Same Stronger Less Same More Yes No Bus. Performance 12 months Prospects for next 12 months Increased turnover?

14 Confidence by sector TOURISM: Tourism Tourism of 3 respondents in tourism 2 recorded an increased turnover in last year. 67% Weaker Same Stronger Less Same More Yes No Bus. Performance 12 months Prospects for next 12 months Increased turnover?

15 Confidence by sector CONSULTING: Consulting Business consulting and services 73% confidence Weaker Same Stronger Less Same More Yes No Bus. Performance 12 months Prospects for next 12 months Increased turnover?

16 Confidence by sector WHOLESALE: Wholesale Wholesalers 78% confident Weaker Same Stronger Less Same More Yes No Unsure Bus. Performance 12 months Prospects for next 12 months Increased turnover?

17 Confidence by sector TRANSPORT: Transport Transport 75% Weaker Same Stronger Less Same More Yes No Bus. Performance 12 months Prospects for next 12 months Increased turnover?

18 Confidence by sector TRANSPORT: Transport Transport 75% Weaker Same Stronger Less Same More Yes No Bus. Performance 12 months Prospects for next 12 months Increased turnover?

19 Construction the lowest sector at 8% confidence with hospitality ranking 100% confidence. BUSINESS CONFIDENCE BY SECTOR Business confidence by sector

20 Question: Within the past two financial years, please approximate increasing costs to conduct your business in Broome Increasing costs over past 2 years Insurance Observations: Electricity, rates, insurance and staff costs show the most concerning rise. Staff/Contractors Freight Electricity Rates Rent/Lease 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% % 1-10% 11-20% 21% more

21 Question: In your business what change do you expect to see in these areas over the next 12 months? Expectations over next 12 months Positive Changes: 1. Increase competition (40%) 2. Increase profitability (31%) 3. Increase sales (29%) Negative Changes: 1. Decrease capital investment (25%) 2. Decrease profitability (36%) 3. Decrease staffing (21%) 4. Decrease sales (29%) While staff levels are only expected to grow 13%, expenditure on wages is Competition Capital investment Profitability Staffing levels Average wages Sales 0.00% 20.00% 40.00% 60.00% 80.00% % % Decrease No Change Increase

22 Question: What are the major constraints to growth in your business or industry? Economic Downturn Downturn in construction low demand for service 13 21% Cost of doing business Living expenses; electricity; frieght, postal delays, advertising 6 10% Government Red tape, liquor licence, beurocracy 6 10% Tourism Tourism downturn too expensive shorter season 5 8% Aviation High airfares from capital cities no international flights 4 6% Competition Oversupply 4 6% Geography location access 3 5% No Big Industry James Price Point not going ahead 2 3% Negativity Attitudes Business' failure to adapt 2 3% Marketing of Broome Poor promotion of Broomeas a tourist destination 2 3% Internet speed Internet speed 1 2% Social Broome's social issues 1 2% Poor service Minimum effort requirements per service 1 2% Gov. funding Commonwealth funding 1 2% Skilled workers Tradesmen 1 2% Digital disruption Locals shopping via internet and not local 1 2% Population Size of town requirements for specialist consultants 1 2% Infrastructure Marina 1 2%

23 Question: Are you aware of the Broome Growth Plan Answer Percentage Total Response Yes 69.35% 43 No 30.65% 19 Question: Do you feel optimistic that the Growth Plan will bring opportunities to Broome businesses? Answer Percentage Total Response Yes 24.19% 15 No 16.13% 10 Not sure 59.68% 37

24 CONFIDENCE COMMENTS - POSITIVE Very confident were our business is at currently, we have made major changes to help drive more customers to our business with 70% 1 being tourist. 2 I'm always confident that business can improve if we can survive the last few years it has to! 3 I am confident in our ability to provide a platform for clients and staff in our industry. 4 Positive Outlook 5 Confident based on track record, however changing Federal Govt Policy is the direct threat to our organization 6 Fairly confident but will need to keep a tight control on costs 7 adapting to change and diversification will have to be part of our plans going forward to consolidate our future. 8 I am offering a service where people are time poor and do not like the heat so I am lucky these factors keep my business going 9 Move slowly along as economy strenghtens 10 I am confident about 4-5 years ahead - in the short term I do not see any industry really taking off to improve confidence here. 11 Very confident as promotion programs and forming 12 we have our heads down & just working hard on doing things correct 13I am confident about my business future because it does not hinge on one industry. Diversity is the key to growth. 14confidence due to community (FB noticeboard) support 15 Confident -Broome is just coming back to the average trend line. Its good despite the pain. Cheaper property and lower rents will enable a stable workforce to make Broome home. The shakeout is a good thing. 16partially confident, the need to diversify is important we can't remain a one tick pony! 17 Having just purchased Bohemia For hair, I am extremely confident of the future of this business and the future of Broome

25 CONFIDENCE COMMENTS - NEUTRAL 1 Run lean till it gets better 2 It will be the same but different 3 Hopefully things will pick up 4 with increased competition/ lower profit volumes ll 5 Unsure I feel our business community is feeling the pinch and that Broome has had many ups and downs over the years. We have a great resource in 6 tourism - just need to get those air fares down to something reasonable plus the accommodation. 7 STRONG DOMESTIC TOURISM IS A BIG PART OF OUR BUSINESS. LOW A$ SHOULD MAINTAIN THIS NEXT YEAR. 8 I think the success of Broome depends on united goals and I am not confident that the people of Broome will ever be united in their vision. 9 It all depends on the growth of Broome

26 CONFIDENCE COMMENTS - NEGATIVE Many of Broome business', including ours, rely on tourism, without this our future is bleak. If the Shire/Fisheries/CALM do not do something about crocodiles ie culling plan introduced expect to see our tourism trade drop as well which will just cripple our town. 1 Something has to be done about crocodiles showing up along our beaches. 2 I feel a lot more companies will close their doors in the not to distant future The social issues in Broome and particulary Chinatwon are crippling business's, Shire rates, electricity, water and insurance are very expensive and LandCorp has destroyed the real estate market by flooding the market and therefore destroying the value in peoples main asset, their home. The Shire are out of touch and live in a dream world where practical solutions are ignored in favor of going by the book even when flexibility is allowed within tge Local planning scheme. I'm happy to elaborate further but it is a hopeless 3 situation. 4 Location is a big issue with my business and cost to get team members to events in Perth 5 Until Broome accepts and welcomes big industry, my business confidence will remain at a cautious level. 6 Combination of lower sales, increasing costs, no growth in medium term makes us nervous about sustainability 7 Not very We are waiting on the flow on from oil, gas, and sand mining plus exploration to have a positive effect on Broome business and 8 confidence 9 Our business depends largely on tourism which has decreased in recent years. We believe that this is largely due to high airfares 10 WE NEED A SUBSTANTIL INDUSTRY TO SUSTAIN GROWTH AND CONFIDENCE.

27 WHAT NOW FROM HERE? While we re proactive on economic growth, this will involve encouraging more business in Broome. In preparation it s important for existing businesses to prepare their response to competition: 1. Understand your market and competitors 2. Find a unique selling proposition 3. Use strategies to compete Jael Napper Broome Chamber of Commerce & Industry ceo@broomechamber.com.au