Business confidence has taken a beating in Western Australia, with many small businesses concerned that people are not spending.

One third of WA small businesses are worried about their prospects for the next 12 months, according to the Sensis Business Index released today.

Report author, Ms Christena Singh, said business confidence amongst Western Australian small businesses deteriorated during the quarter. However, Western Australian business confidence remains slightly above the national average.

“Trading conditions have been weak for Western Australian small businesses during the quarter, with sales substantially down, profitability stagnant, but prices rising,” she explained.

Western Australian small businesses are also expecting another quarter of weak conditions.
The report indicates 16 per cent of Western Australian small businesses are looking to close or sell their business (lower than national average of 17 per cent).

“However, Western Australian small businesses are resilient and very nimble, with many taking proactive measures to counteract the changing conditions,” said Ms Singh.

According to the report, 41 per cent of Western Australian small businesses are planning to introduce new products and services during this financial year, while 38 per cent expect to develop a business plan, 37 per cent to increase their digital presence, 30 per cent to increase advertising activities and 24 per cent to increase social media activities.