Small business owners’ confidence is booming in the wake of the federal election.
A new survey reveals that over half of small businesses say they are now “optimistic” compared to only 19 per cent who said they were optimistic before the May 18 result.
The Westpac study also found 31 per cent of small business owners said the Morrison Government victory would have a positive impact on their ability to innovate, grow and expand into new markets.
A stable political climate has enabled South Melbourne organic food company Whole Kids to explore new opportunities. Founder and CEO Monica Meldrum said: “It’s good to know that there is certainty in our government for the next three years so we can get on with expansion plans.”
Westpac’s general manager of small and medium-sized business banking, Ganesh Chandrasekkar, said small businesses relied on political stability to effectively run their day-to-day operations.
“The pre-election had caused small business owners to pause, concerned about the impact election policies will have,” he said.
“Our latest report has found a huge confidence growth in the sector, mainly because we now have a majority government. The sharemarket has increased and the housing market is improving.
“We’ve also seen an increase in business inquiries on equipment loans in the past few weeks, which bodes well for the small business sector.”
Online insurance firm BizCover said the election result was good for customers as well.
“The main concern was the lack of stability, clarity and continuity of policy,” said managing director Michael Gottlieb. “Now, I’m extremely hopeful we will see government providing an environment of certainty which hasn’t been the case for years.”