Exporters see bluer skies for 2018

AUSTRALIAN exporters are starting the year with high hopes.

Australian Small Business and Family Enterprise Ombudsman Kate Carnell predicted yesterday that 2018 would be a year of strong growth for small businesses sending their goods overseas.

Ms Carnell said the latest International Business Survey showed growing confidence among businesses that were already exporting.

In agriculture and wholesaling, two thirds of businesses believed the outlook was better than in the previous two years.

Key target markets for strong revenue growth include China, the US and the UK.

The survey, commissioned by the Export Council of Australia, reflected the opinions of 941 firms from 19 sectors undertaking international activities in more than 90 overseas markets.

They were among about 20,000 small businesses engaged in exporting, accounting for 44 per cent of all exporters, many of which were helped by free trade deals.

“Australia is seeing increased growth in exports, and small businesses are leading the way,” Ms Carnell said.

“Nearly 88 per cent of Australian exporters are small-medium enterprises.

“An increasing number of firms are ‘born global’, which means they’re exporting at the very beginning.”

Ms Carnell said the findings matched Australia’s export credit agency’s results from an August survey, which found two thirds of respondents expected sales revenue to increase.

“Potential exporters need to know there is support available from Austrade and Efic (the government’s export credit agency) to research their markets, make connections and obtain finance,” she said.

“Over the past three years, Efic has worked with more than 262 small businesses and provided more than $350 million in financial support.

“Efic is the Australian Government’s export credit agency – it operates on a commercial basis and partners with banks.

“It’s a model I believe should also be looked at for small business finance more broadly.”

The latest International Business Survey showed just over one third of respondents had applied for finance and nearly 40 per cent of them were unsuccessful.

Ms Carnell said this illustrated the challenge for small businesses in obtaining capital from traditional banks, which required property as security.

“It’s great that more entrepreneurs are getting started with exports, but rapidly growing small businesses need sources of finance that don’t require putting the family home on the line,” she said.

Australia is seeing increased growth in exports, and small businesses are leading the way

— Kate Carnell