Australian business growth stalling

More than half (56%) of Australian businesses experienced no revenue growth over the last 12 months.

So say the results of a biannual survey from serviced office supplier Servcorp.

The survey of 464 business owners and executive managers also shows that businesses are hesitant to hire new staff under these conditions. Two-thirds of Australian companies have only maintained their headcount over the past year.

Enterprises are struggling under difficult economic and market conditions, as well as a reduction in consumer spending and customer budgets.

“While talk of tough economic conditions is nothing new, this report is a harsh reality check for all Australian businesses,” Servcorp COO Marcus Moufarrige said. “As companies fight harder to win clients with smaller budgets, Australian businesses are essentially becoming stagnant even as they are trying to grow.”

Respondents feel the federal government must do its part to improve conditions for Australian business, with more than half (52%) believing the government could make the biggest impact by reducing taxes.

Companies are turning to technology to stimulate growth, with 64% planning IT investments over the next 12 months. Planned projects include website upgrades (33%), as well as investments in social media (26%) and in cloud services (22%).

“It’s a great sign that companies recognise the benefits of technology and are making this investment. In tough times, technology has a vital role to play not only in increasing efficiency but also innovation,” Moufarrige said.

Image courtesy of grace_kat under CC