BUSINESS OWNERS: TAKE RISKS AND HAVE A GO

Written on the 30 July 2015

BUSINESS OWNERS: TAKE RISKS AND HAVE A GO

AUSTRALIA needs to get off its hands and start taking risks again in order to reinvigorate the nation's stagnant economy, according to accounting and advisory firm William Buck.

Corporate advisory director Robin Judd says Australian CEOs need to rediscover their entrepreneurial spirit and begin making things happen rather than sitting back and waiting for them to change.

"Despite interest rates at record lows, generous Budget tax deduction stimulus packages and a government exhorting businesses to have a go, corporate Australia continues to sit on its hands," Judd says.

"Instead of entrepreneurial new business projects, many Australian investors continue to look at safer investment options such as property and arm's length share market investment.

"They're taking the view that the current slowdown will continue for the foreseeable future so are taking a conservative approach. The big problem with this attitude is it manifests into that exact scenario and does nothing to break the cycle."

Judd says finance was no longer a barrier, but cashed-up companies were choosing to take a more conservative path despite this shift.

"Access to finance isn't the problem, it is the willingness to move away from the mindset they've become tied to since the GFC," he says.

"Finance is certainly available. Banks have to keep lending to be competitive and while there is not as much goodwill or cash flow lending, there's been a definite shift back to lending from the banks."

Judd says unlike in the past where Australian companies would drill money back into the growth of their manufacturing or retail enterprises, many were now choosing to invest in conservative asset portfolios rather than diversify.

"Companies are concerned about the potential for disruption of their traditional business sectors, but rather than diversifying their own business, they are choosing to invest safely to manage the risk," he says.

"Despite the conservatism we see a real appetite for non-mining investment. In particular, attention is being given to sectors of the future, such as digital communication, renewable energy, health and aged care.

"We are also seeing more social investment in medical technology and products designed for an ageing or disabled population.

"The problem with this approach is it doesn't create direct employment or growth of their own business and in many cases, the economic benefits of these investments are realised offshore."

 


Latest News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

VITA GROUP SHARES SURGE UPON RESULTS

VITA Group (ASX: VTG), the Brisbane telco retailer tied up with Telstra (ASX: TLS), saw its share price surge 12 p...

SONAND TURNS THE TIDE AT SURFSTITCH

SURFSTITCH (ASX:SRF) has reduced its losses in the first half of FY17 as new CEO Mike Sonand executed his turnaround ...

EUREKA IMPROVES WHILE MANAGEMENT REMAINS UNIMPRESSED

EUREKA Group has collected the gains on its 'buy and build' strategy to achieve a net profit of $6.29 mill...

Related News

KOPLOVITZ GIVES SPRINGBOARD TO AGILE ENTREPRENEURS

FOR Kay Koplovitz, the key to being a successful entrepreneur is an agile mind - one that is always learning and q...

FASHION RETAILER'S TAKEOVER IN DOUBT AS PROFIT CLIMBS

IN the thick of takeover talks, Specialty Fashion Group (ASX: SFH) worked hard to cut costs and see its bottom lin...

HOW TO TAKE CONTROL OF YOUR CAREER THROUGH TRAINING

GIG economy, remote working, and freelance Friday are more than just buzz terms; our workforce is changing, and so...

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter