Entrepreneurs say now is the time to open a new business

By Cara Waters
Thursday, 11 October 2012

Australian entrepreneurs are optimistic about opportunities for growth, with 74% saying they would open a new business in this country right now, according to a study released yesterday by the Entrepreneurs' Organization.


EO is a worldwide network which represents business owners and founders with a minimum of $1 million a year in turnover.


It surveyed 156 of its Australian members in its 2012 Global Entrepreneurial Business Indicator and discovered that despite negative press about the state of the Australian economy, over half had seen an increase in their revenue in the past six months and a total net profit increase of over 50%.


Looking forward, 79% believe they will see an increase in their business revenue and net profit.


The survey revealed that 51% have increased the number of full-time employees in their business in the past six months and 46% had increased their part-time contracts.


In the next six months 56% plan to increase the number of full-time employees in their business and 55% plan to increase part-time contracts.


Access to capital remains stable, according to the survey, with 87% saying their ability to raise capital had remained the same or increased.


However, the survey respondents were divided as to whether the country's economic environment will change in the coming six months, with 25% believing it will improve, 43% believing it will stay the same and 32% predicting it will deteriorate.


Naomi Simson, EO member and owner of RedBalloon, told SmartCompany the survey results reflected her outlook, as entrepreneurs are by their nature positive people who look for opportunities.


"We are sick of the negativity," she says.


EO member and founder of stationary brand Kikki K, Kristina Karlsson, says she is also optimistic about the outlook for her business.


"People say retail is tough but the toughest was when I started [post-September 11] and it has been more positive since then," she says.


"I am really optimistic about the future and I am in the process of looking to expand globally."


This story first appeared on SmartCompany.

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