The latest Business Confidence survey from Roy Morgan Research shows sentiment among business owners in January 2014 was the strongest it’s been since January 2011.
Business confidence increased across all business sizes to reach 131.5 in the Roy Morgan index last month, up from 125.2 in December and 112.5 in January 2013.
Roy Morgan Research attributes this growth in confidence to increased positive feelings about the future of the economy over the coming 12 months and next five years.
The survey also found respondents are feeling their businesses are currently more financially secure compared with the same time last year.
“The improvement in business confidence was expected to some extent, based on the fact that historically it normally shows some improvement in January. However, it was probably boosted by the lack of bad economic stories in January compared to what occurred in November and December,” Roy Morgan Research Industry Communications Director Norman Morris said in a February 10 media release.
Roy Morgan Research surveyed more than 1,500 businesses of all shapes and sizes across Australia as part of this index. The collected data shows confidence increases were shared among most industries, states and territories and business types.
However, small and micro companies experienced the greatest growth in positive sentiment. Micro businesses climbed by 6.8 points to reach 130.1, while small business confidence rose to 140, an increase of 2.7 points.
This growing confidence could encourage many of these small businesses to consider hiring new staff or expand their organisation through other means.
Before taking this step, company owners are reminded to review their business insurance policy to ensure no gaps in cover cause financial loss in the future.
If you are considering expanding your Western Australian business, contact Bruce Insurance today. We are a specialist business insurance broker that offers tailored insurance products to suit most organisations.