Northern Territory SMBs face another tough quarter, remaining the least confident in Australia

5 February 2019: The December Quarter 2018 Sensis Business Index, released today, has revealed that small and medium businesses (SMBs) in the Northern Territory (NT) were found to be the least confident of all states and territories for the tenth quarter in succession.

The report, which measures SMB activity, expectations and confidence over a three-month period, has found that despite a 20-point lift in the confidence net balance in NT, local SMBs remain 23 points behind the nations average balance (50+) and 15 points behind the next lowest score in found in NSW (+42).

Sensis Chief Executive Officer, John Allan, said: “It’s disappointing to see the continued struggle among small and medium businesses in the Northern Territory, which began in September 2016.

“The survey revealed that SMBs in the Territory suffered a quarter of falling sales and referenced unfavourable business conditions, so it’s easy to understand why just short of half of small and medium businesses (45%) do not feel confident,” Mr Allan said.

Key performance indicators remained low, with four of six reporting negative balances – notably for sales (-7) and profitability (-14).

“When looking at expectations for the year ahead however, Territory businesses appear optimistic, with positive balances recorded in all key indicators with the exception of capital expenditure.

“We hope to see the Territory maintain this optimism as they continue through 2019,” Mr Allan added.

SMB support for the Northern Territory Government increased by seven points, however remained negative (-2).

“A trend we have witnessed nationally is SMB opinions that their state or territory government has no impact on their business, which is true of more than half of SMBs in the Northern Territory,” Mr Allan added.

Other interesting findings from the report:

· SMBs in the Northern Territory found it harder to access finance than any other state or territory, with a net balance of -39.

· Capital Expenditure throughout 2018 was found to be lowest in the NT at -16.

· A lack of work or sales was a common concern mentioned by 21% of SMBs in the NT, the highest reference across the nation.

/Public Release.