Private Business Barometer 9Listening to Australia’s private businessesMay 2011Now featuring the Private Business Barometer Pulse
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Highlights and Trends

Private business trends


Sales and profit growth rates down


Private businesses’ average profit and sales growth rates fell to levels last seen during the global financial crisis, against a backdrop of continued economic uncertainty.







Pricing dominates


Private businesses continued to find pricing the main factor in winning new business, albeit less so than a year ago. Customer expectations and demands also rose and margin compression re-emerged as a factor, after all but disappearing in the past two PwC Private Business Barometer surveys. This may indicate businesses are vigorously discounting their products and services to secure new customers.





Setting cautious targets


Private businesses remain optimistic about medium-term sales growth targets and are taking a slightly more conservative approach to setting medium-term profit growth targets. However, businesses are setting cautious short-term targets. This is most likely due to uncertainty over domestic and international economic conditions and their impact on demand.

Geographic and product expansion complements organic growth


Private businesses plan to expand into new product and geographic markets and grow organically to meet their medium-term targets. The fact that businesses are seeking funding from banks may indicate they are already laying the groundwork to diversify into new markets.






Businesses take on more debt


Private businesses are starting to reverse the long-standing decline in their borrowings as a percentage of their assets. Owners and senior executives are becoming more likely to approach banks and other external finance providers for loans to fund expansion.

Sticking to the plan


Private businesses are reviewing their plans more frequently. The share of respondents who reviewed their business plans more than once a year increased slightly since the last survey, while the percentage of those who only dusted off their business plans every year or two continued to fall.