An introduction to the research
National accounting and advisory firm William Buck, in partnership with Western Sydney Business Connection, St George Bank and the University of Western Sydney will soon release the findings of recent research on Western Sydney businesses in the report “Making Western Sydney Greater”.
The report includes insights into:
- The 3 key priorities for Western Sydney business owners – and how they vary to those of the Government;
- The 6 action points that must be considered for the region’s successful growth;
- How to shape Western Sydney as Australia’s 3rd largest economic region by developing a workforce for the future;
- The support the Government can provide for businesses – and how that differs for Micro, SME and Large Businesses;
- And much more.
Amongst all the research, three key themes that emerge are employment, infrastructure and business sentiment.
Quick peek …
Business impediments and opportunities
The research found SME Businesses are positive in their employment intentions. As a group, they are expecting to increase employee numbers, in particular their full time employees and contractors. By way of contrast, large Businesses, on average, are intending to reduce their workforce.
Despite this positive outlook on employment, both SME Businesses and Large Businesses in the region cited workplace regulation and employment taxes as two of the most significant impediments to their businesses.
For SME businesses, their greatest threat comes from employment related regulation, which creates 2 of their top 3 business issues.
More than taxation, and materially more than import/export regulation and environmental laws, it is employment related regulation that is negatively impacting businesses. Changes to the current arrangements are required for SME businesses to develop to their full potential.
These same businesses see investment in their workforce as a key opportunity. Government support for training of employees was identified as a preferred way for structured support to be provided to businesses in the region.
Business sentiment
The “GWS Business Sentiment Index” was -4.9, showing a neutral to slightly negative business outlook. This is not only negative – but more negative than that of the general Australian business community.
This can be contrasted with the forecast financial performance of businesses in Western Sydney, which is positive.
On average, businesses expect to slightly exceed their revenue and profit targets and maintain capital expenditure over the coming six months. Financial performance is strongest for SME Businesses, in particular those with turnover of $2-$30m. Capex is strongest in the +$100m turnover businesses, but financial performance is weakest in this group.
The report’s research shows the material difference in economic performance between the region as a whole, the SME Businesses, and the Large Businesses.
For example, the forecast revenue results for:
What next?
Western Sydney has a once in a generation opportunity. If the benefits of major projects in the region, such as the ‘Badgerys Creek Airport’, can be harnessed to drive and grow development of SME Businesses, the benefits for Western Sydney and New South Wales, could be enormous.
With a detailed plan for Western Sydney’s development and growth, the skills and attributes of the workforce needed for its implementation can be identified. Businesses in the region should then be supported to invest in their employees and develop these skills and capabilities in a targeted way.
Local procurement combined with employee skills development, targeted at SME Businesses, will be an effective way to drive the growth and development of the Western Sydney economy.
Get involved …
The Making Western Sydney Greater report will be released in early March 2015 to all those that completed the research and to those that want to participate in the next stage of this ongoing research.
To receive a full copy, email research@williambuck.com
This research is based on the responses of over 200 business owners and senior managers from across the region.
The research is an ongoing effort. To be part of the next survey in May 2015 contact us on research@williambuck.com
William Buck, WSBC, St George and UWS are committed to making Western Sydney greater.
