With many Australian’s relying on wage growth to fund housing expenses growing at an even faster pace, the future is not looking rosy for many businesses.
The Australian Corporate Health Index today shows more than 70 per cent of 200 listed companies outside of the financial services sector went backwards this year and 32 per cent was classified as unhealthy.
This follows a report two weeks ago about small businesses with a insider to the ATO saying small business debt levels are now “horrendous”. “We’re talking companies that can’t meet their liabilities,” he said. “A lot [of them] are trading which are technically insolvent.”
The report says Small Business makes up 40 per cent of private industry economic output and employs in excess of 5 million people.
Dun & Bradstreet’s CEO, Christine Christian said “‘The SME sector is unfortunately experiencing far more financial and credit stress than its big business counterparts, who are very much enjoying the benefits of the Government’s stimulus package”
» A third of companies unhealthy – The ABC, 14th December 2009
» Small business, big trouble – The Sydney Morning Herald, 5th December 2009.