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RAN ONE Rocket Report -
Managing Through Economic Crisis |
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PRESS RELEASE: SMES PREPARED TO TAKE RISKS TO STAY AFLOAT ACCORDING TO NEW RESEARCH |
RAN ONE commissioned research reveals insights into the effects of the credit crunch on SMEs across Australia, North America and Europe.
40 per cent of small to medium enterprises (SMEs) are prepared to take risks to save their business, and almost half are expecting to feel a negative impact due to the economic downturn, according to research released by RAN ONE, a world leader in the design and development of business solutions and training for the SME market sector.
Looking at the impact of the credit crunch on SMEs in the North Americas, Europe, and Australia, the survey commissioned by RAN ONE,which polled 700 SMEs across the three regions, 80 per cent of SMEs surveyed globally believe the credit crunch will have a significant negative impact on business, with 49 per cent of SMEs surveyed expecting profits to fall. It also unveiled that despite the uncertain economic outlook, Aussie SMEs are fairing better than their overseas counterparts.
“SME owners and managers have never faced such a period of change and uncertainty,” said Jim McKerlie, CEO of RAN ONE. “These results show SMEs are expecting to be hit hard by the credit crunch through job losses, declining profits and possible business closures and many are considering taking risks to stay alive.”
The independent research, conducted by QuestionPro, found:
- Supply chain uncertainty: 36 per cent of SMEs feel there is more uncertainty with their supply chain and concerned that this will affect business.
- Hitting sales targets: US (60 per cent) and European (58 per cent) SMEs are significantly feeling it is harder to make a sale than their Aussie counterparts (40 per cent).
- No salary increases: 51 per cent of SMEs are more likely to lower salary increases due to the credit crunch.
- Pressure on prices: Price pressure is hitting over 65 per cent of SMEs right now.
- Access to finance: SMEs in Europe are worst hit in terms of finding it harder to access finance - seventy three percent of SMEs in Europe, compared to sixty per cent in the North Americas and only 46 per cent of Australian SMEs.
- Customers will pay: Two-thirds of European and American SMEs are finding that customers are taking longer to pay, compared to 53 per cent of Aussie SMEs.
“With change, comes risk; but where there is risk there is also opportunity,” added McKerlie. “After years of economic prosperity business owners and managers are facing a different environment with the global financial meltdown and the consequent economic recession. Entrepreneurs fly in the good times but tough business management is needed to survive a recession. It is critical that SMEs take risks to see through the perfect economic storm.”
To help SMEs deal with the economic slump, RAN ONE has created the Rocket Report: Managing Through the Economic Crisis. According to the research, 50 per cent of all SMEs surveyed are prepared to take risks to keep their business running; this guidebook is intended to help them consider ways to stay alive before jumping and taking unnecessary risks.
Survey & Research Methodology
RAN ONE commissioned independent research company QuestionPro to survey SMEs across United States, Canada, Australia and Europe to explore the effect of the credit crunch on business. From October 2008 to January 2009, QuestionPro conducted a confidential online survey with 700 SME owners with up to $5M turnover. Participants were selected randomly to reflect a globally representative sample of the working SMEs.
QuestionPro.com offers market research software for the creation, distribution and analysis of electronic surveys. QuestionPro offers survey design and development capabilities possible via the Internet. The integrated analytical tools make data-collection and insight a single-stop solution. More information on QuestionPro is available via the Web at www.questionpro.com.
Read Full Press Article
'Out with the old in with the web' was released in Australia's leading financial paper The Australian Financial Review on March 23, 2009.
Download article 'Out with the old and in with the web' >>
Download Rocket Report | Managing Through Economic Crisis
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About the Author - Jim McKerlie
 Jim McKerlie is the Global Chairman of RAN ONE which is a world leader in the design and development of business solutions and training for accountants, consultants and business advisors who serve the small to medium enterprise (SME) market sector. Jim has more than twenty-five years of consulting experience working with clients around the world. His client base includes numerous major international public companies, the public sector and privately owned businesses. Jim has consulted extensively in North America, Asia Pacific, Europe and Africa. He has held positions as Managing Partner with Deloitte & Touche and with KPMG Consulting for Asia. He is a noted media commentator, author and presenter on business, economic and public policy matters.
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