‘78PC EXPECT TO GROW IN 2024’
Survey indicates more small businesses are bullish on growth prospects
AN annual survey by Certified Practising Accountant (CPA) Australia found that 78 per cent of small businesses in Malaysia expect to grow this year, the best result it has seen in 12 years.
Its annual Asia-Pacific Small Business survey results show that more small businesses are bullish on their growth prospects this year.
Last year, 66 per cent of small businesses surveyed saw growth.
The upbeat sentiment by nearly three quarters of respondents, above the survey average of 65 per cent, is pegged to the confidence in the economy.
The online survey of 308 respondents was conducted among a random sample of small business owners/senior managers from organisations with fewer than 20 employees between November and December.
“Forty-nine per cent sought external funding for business growth last year, reflecting a shift from business survival in 2022,” it said.
The report said increasing cost of doing business remained a key concern with materials, utility costs, staff costs and rent being the costs that impacted businesses the most last year.
Close to 50 per cent said increasing cost negatively impacted their business.
“Young entrepreneurs are driving the momentum on innovation and technology uptake. The survey results have shown over many years that small business with younger entrepreneurs are more likely to be growing, innovating, using emerging technologies and exporting,” said CPA Australia president (Malaysia Division) Surin Segar.
Strong returns from online sales through a wider choice of new digital and payment technologies and greater social media presence are driving technology spending.
Mobile applications remained the most popular technology for small businesses to invest in last year, with almost 50 per cent reporting their technology investment improved profitability.
Thirty-two per cent said they would introduce a new product, process or service this year.
Surin said since many small
businesses were risk averse, it was crucial for policymakers to support young and inexperienced entrepreneurs or those in key positions, to seek business advice.
Meanwhile, 52 per cent of small businesses owners reviewed their cybersecurity strategy in the last six months compared with 48 per cent in 2022.
Surin said it was encouraging to see the increase in cyberrisk awareness, as the government continues to strengthen regulatory
frameworks with the new Cyber Security Bill.
According to Surin, small businesses tended to centre their environmental, social and governance (ESG) focus on staff health and safety, supply chain sustainability, diversity and inclusion policies.
“We hope to see increased investment in advanced ESG practices, such as renewable energy and the adoption of green and sustainable finance opportunities.”