Australian business leaders, along with their Asia Pacific counterparts, are continuing to face many challenges. As well as issues of cyber security and natural disasters, regional geopolitical tensions remain high on their agenda.
In fact, according to PricewaterhouseCoopers’ (PwC) fifth annual APEC CEO Survey, this is having a significant impact on business growth over the coming 12 months.
With an increased volatility in regional financial markets and more businesses facing the prospect of insolvency, just 28 per cent of leaders in the region believe their enterprises will see revenue growth. It is important to note that this is a decrease of 12 per cent over the last year and a record low since statistics were first recorded by PwC in 2012.
Chairman of PricewaterhouseCoopers International, Dennis M Nally, explained that many business leaders are working hard to achieve success in the face of troubled times.
“After a year of historically high foreign direct investment into developing Asian economies, APEC CEOs have become very sensitive to financial market signals and the likely impact on revenue growth,”
“Nonetheless, they are still expanding into new APEC locations. This gives testament to the experience they have gained in managing short-term instability and balancing this against the opportunities to generate business in the region.”
Cost pressures rising in Australia
While the latest Australian Chamber of Commerce and Industry Small Business Survey suggests that it is not all doom and gloom for the country’s small businesses, there are cost pressures that must be addressed in the near future.
According to the survey, wage pressures and non-wage labour cost remain higher than expected, forcing employers to look at changing their payment structures or face ongoing money and financial problems.
Australian Chamber CEO Kate Carnell explained that government policies must be aimed at helping small businesses avoid bankruptcy and other consequences.
“New small businesses are the biggest contributors to job creation, according to recent research from the Department of Industry, so encouraging small businesses to invest and employ is fundamental to finding jobs for the 740,000 people looking for work,” she said.
Securing progress for the new year
If your small business is facing industry or internal problems, it is important to address these before you face more severe financial implications. While the government is always working to improve business conditions, leaders must seek outside assistance in order to stay ahead of the pack. This is where Corporate Lifeline can be of assistance.
With an expert team on hand, we can ensure that your business is financially viable or guide you through the various wind up processes.