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Small and medium businesses start 2024 with ‘solid sense of optimism’

February 17, 2024
in Business
Small and medium businesses start 2024 with ‘solid sense of optimism’
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A MYOB survey shows small and medium sized businesses have gone into 2024 with “a solid sense of optimism”.
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Small and medium sized businesses (SMEs) have gone into the new year with a positive view of economic improvement and hopes of increased sales and revenue in 2024.

A survey of more than 500 firms by accounting software firm MYOB showed 44 percent expecting better economic growth this year compared to 33 percent expecting a decline.

MYOB general manager – SME Emma Fawcett said the optimism has been driven by a stronger end to last year, with two-fifths of those surveyed having better than expected performance, and a third saying revenues were higher.

“With revenue for many SMEs up on this time last year and with even more – 40 percent – expecting to see an increase over the next 12 months, SMEs are heading into 2024 with a solid sense of optimism.”

Fawcett said businesses still recognised the challenges ahead with inflation, business profitability and cashflow, and interest rates cited as the top concerns for the first half of the year.

The survey identified budget setting and cost control as the top priorities for action, followed by chasing new business opportunities and negotiating with suppliers, while business owners were spending the equivalent of a couple of days a week on administration.

Fawcett said owners were increasingly turning to digital tools including artificial intelligence to do an increasing number of jobs such as processing invoices, tracking expenses, and financial forecasting.

However, businesses were also being hampered by late payers, with the average time for payment sitting at just over 26 days.

“While digital solutions offering capability like eInvoicing and online invoice payments can make an enormous difference to payment times and as a result, that all-important cashflow, no SME should have to wait 20 days to be paid for their goods or services,” Fawcett said.

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Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/business/509312/small-and-medium-businesses-start-2024-with-solid-sense-of-optimism-survey

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