Sleepless Nights for Aussie SMEs - UPS survey reveals SME concerns about cash and funding
Sydney, 12 July 2006 - Issues relating to cash flow and funding are keeping nearly third of Australian small business decision-makers awake at night, according to findings in the second annual UPS Asia Business Monitor (UPS ABM II).
UPS ABM II is a survey on competitive issues of more than 1,000 Small and Medium Enterprise (SME) leaders in 12 countries.
Of the 100 Australian companies surveyed, 30% said their single most worrying business issue is access to cash flow, funding or capital.
Commenting on the findings, UPS Australia Managing Director Jeff Fairbairn said SMEs with financial concerns should consider reviewing their day-to-day operating costs in areas such as package delivery. "UPS is well-positioned to help SMEs become more competitive through a wide range of supply chain initiatives from package delivery to financial solutions," Mr Fairbairn added.
UPS ABM II also found that business confidence has fallen significantly amongst Australian SMEs compared with the initial survey. In the first ABM, 82% of local SMEs predicted their prospects would improve in 2005. In the latest survey, the figure had fallen to 59% anticipating improved prospects by the end of 2006.
In other findings, Australian SMEs highlighted the lack of available qualified staff as a major business concern. Over 20% of local companies questioned raised the issue of a shortfall in the availability of qualified employees. Other worries included government policies - with 11% of SMEs concerned - and sales/turnover with a 9% figure.
The survey was carried out in Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.
Overall results from the survey showed that with intra-Asia trade flourishing and Asia's emerging markets gaining a stronger foothold in the global economy, Asia's SMEs were bullish on the region's prospects.
However, according to the findings, the region's long-term sustainability is threatened by the lack of innovation, availability of qualified staff, and access to funding and working capital.
SME leaders in most of the 12 markets believe that 'hardware' such as transportation infrastructure and IT adoption is available. However, they report that the biggest obstacles to SME competitiveness are the lack of 'software' such as qualified staff, innovation, and funding and capital.
Respondents also cited barriers in developing countries such as China, Indonesia, Thailand and the Philippines including legal framework, supply-chain efficiency, access to overseas markets, and access to market intelligence and other business information. Government support is also a concern in many markets.
UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronising the flow of goods, information and funds. Headquartered in Atlanta, USA, UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at www.ups.com.
Notes to Editors
- UPS Asia Business Monitor series provides the latest insights into the changing opinions, attitudes and habits of business leaders from the region's small and medium sized enterprises.
- UPS Asia Business Monitor II surveyed 1,203 decision makers of SMEs between November 14, 2005 and January 10, 2006. Interviews were conducted by an independent research organisation, TNS, using the respondents' native language from the TNS International Calling Centre in Hong Kong. SMEs are defined as companies with fewer than 250 employees.
- Interviews were conducted in the following 12 markets: Australia (100), China (151), Hong Kong (100), India (101), Indonesia (51), Japan (100), Korea (100), Malaysia (100), the Philippines (100), Singapore (100), Taiwan (100) and Thailand (100).
- Respondents were from a range of industries: automotive, electronics & electricals, garments & textiles, gifts & housewares, healthcare & pharmaceuticals, timepieces, jewellery & optical goods, toys & sporting goods and others.
- A majority of the SMEs interviewed had an approximate annual turnover between US$500,000 and US$10 million. The average SME has been in business for nearly 22 years.
- Graphs and charts from the UPS Asia Business Monitor II as well as interviews with third-party spokespeople are available by contacting Gerald Lim at UPS on +65 6883 7461 or geraldlim@ups.com, or Yvonne Tung at Ogilvy Public Relations Worldwide on +852 2884 8552 or yvonne.tung@ogilvy.com.
|
|
 |
UPS Pressroom |
|
|
Read press releases, announcements and other media-related information about UPS.
|
|
 |
|
View History
