The document summarizes the findings of the fourth survey conducted as part of The Voice of Australian Business research project. Some key findings include: - Business confidence is beginning to weaken compared to previous surveys. Medium sized businesses are more confident about long term prospects than micro or small businesses. - When asked about the 2016-2017 budget, around 40% of SMEs believed it would not include beneficial measures for their business. Tax simplification and corporate tax cuts were most desired. - Over half of SMEs do not have a formal risk management process, with competitors and economic volatility viewed as the top business risks. - Digital disruption is seen as more of an opportunity than a threat across all

1. The Voice of Australian
Business 2016

2. The Voice of Australian
Business 2016
Mark Chapman – CEO
The Bentleys Network
ceo@bentleysnetwork.com.au

3. What is The Voice?
The Voice of Australian Business is a long term
research project that follows and explores the
mindset, needs, expectations and concerns of the
Small to Medium (SME) business environment in
Australia. The survey is conducted online with
business owners, ‘C’ suite or Directors (decision
makers) who are remunerated for their time. The
survey has been carried out twice a year since
2014 and each survey examines key areas of SME
concerns yet retains lines of questioning around
business confidence, growth and technology.
This is the fourth ‘Voice’ survey and the data
represents what SMEs are telling us.

4. Why does Bentleys collect this
data?
• There are 2,100,162
businesses in Australia
• Of which 2,045,333 are
SMEs
• They produce over 90%
of GDP
• They provide approx.
69% of the workforce
Source Australian Bureau of Statistics 2015
• SMEs feel that they do
not have a ‘Voice’
• A professional services
firm needs to
understands its clients
concerns.
• Bentleys wants to
position itself as a
‘thought leader’

5. Running an SME is……..
9%
21%
35%
31%
3%
Running an SME is…
Very hard
Somewhat hard
Neither easy nor hard
Somewhat easy
Very easy

6. The Voice Surveys
The Voice 1
April
2014
The Voice 2
November
2014
The Voice 3
August
2015
The Voice 4
March
2016
Business Confidence Business Confidence Business Confidence Business Confidence
The Dining Boom Attitudes to Tax and
GST
Challenges for SMEs Risk Management
Technology concerns Technology – why the
slow uptake?
Investment in
Technology
Digital Disruption
Foreign Investment Knowledge of Foreign
Investment
Access to Funding Cross Cultural
Challenges
Industrial relations The emergence of The
Micro Business
Succession Planning
and Superannuation
The Budget
Expectations and the
SME Environment
Selected industry
sectors
All Industry sectors All Industry sectors All Industry sectors
3280 SMEs 350 SMEs 350 SMEs 350 SMEs

7. Western Australia key take outs
Most confident state with 67% confident in business
16% say they have delayed investment to improve
business resilience, as well as diversification, working
longer hours and improving productivity
52% of SMEs are familiar with cloud computing, only 6%
of those who aren’t using the technology for something
other than email plan to adopt it in the next 12 months

8. The Voice 2 - SMEs believe that
Tax is too complicated

9. The Voice 3 - Evidence suggests that
SMEs are finally embracing
technology
14%
44%
42%
Wave 1 - Planning to invest in new technology
Yes No Unsure
28%
40%
32%
Wave 3 - Planning to invest in new technology
Yes No Unsure

10. The Voice 3 - Business
Confidence
Comparison of recent data
25%
16%
18%
34%
44%
41%
25%
24%
22%
15%
14%
16%
2%
3%
3%
Wave 3
Wave 2
Wave 1
Confidence in business prospects over next 12 months
Extremely confident Somewhat confident Neither confident nor worried Somewhat worried Extremely worried

11. The Voice 4 - What did Bentleys
ask?
• Business Confidence – to
what extent do you feel
concerned about business
prospects over the next 12
months and what will this
confidence lead to?
• The Budget 2016– what do you
want to see in the budget and do
you think the rate of GST should
be raised to 15%
• Risk Management– what are
your key business risks and do
you have a formal risk
management process?
• Do you seek external
advice– when was your
organisation banking relationship
reviewed and by whom?
• Digital Disruption – is it a
threat or opportunity and in what
areas do you think it can benefit
your business. Have you
automated any of your
processes?
• Cross Cultural Challenges –
do you operate in markets outside
Australia or New Zealand and
what are the challenges you face?
• The SME Environment – time in
business, competitors, business
intelligence and your advisors

12. Definitionsk?
micro: 1-4
employees
49%
small: 5-19
employees
26%
medium: 20-200 employees
25%
Metro – A capital city or its surrounding suburbs
Non-Metro – a non state or territory capital or a regional or remote area

13. Data Available
39%
29%
16%
10%
6%
36%
32%
15%
6%
10%
0% 10% 20% 30% 40% 50%
Improve profits
Improve cash flow
Improve business value
Improve solvency
Another area
Metro (n=189) Non-metro (n=157)
By Location
34%
36%
12%
5%
13%
44%
30%
16%
7%
3%
39%
21%
23%
14%
3%
0% 10% 20% 30% 40% 50%
Improve profits
Improve cash flow
Improve business value
Improve solvency
Another area
Micro (n=168) Small (n=91) Medium (n=87)
By Size

14. Confidence is beginning to
weaken…
14%
25%
16%
18%
40%
34%
44%
41%
25%
25%
24%
22%
18%
15%
14%
16%
3%
2%
3%
3%
Wave 4
Wave 3
Wave 2
Wave 1
Confidence in business prospects over next 12 months
Extremely confident Somewhat confident Neither confident nor worried Somewhat worried Extremely worried

15. Short and long term
confidence
14%
15%
40%
39%
25%
28%
18%
14%
3%
4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Over next 12 months
Over next 3 months
Extremely confident Somewhat confident Neither confident nor worried Somewhat worried Extremely worried

16. Medium sized business is more
confident for long term prospects…
11% 13%
21% 17%
10%
36% 36%
51%
39%
41%
28% 25%
18%
22%
28%
21%
21%
8%
20%
15%
3% 5% 2% 1% 6%
Micro Small Medium Metro Non-metro
Confidence in prospects over next 12 months
Extremely worried
Somewhat worried
Neither confident nor worried
Somewhat confident
Extremely confident

17. Plans for the next 12 months
40%
28%
27%
25%
22%
20%
17%
15%
7%
6%
6%
5%
5%
5%
2%
17%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Acquire new customers
Grow profits
Grow revenue
Introduce new products or services
Hire new staff
Invest in new technology
Invest in marketing
Invest in new plant or equipment
Introduce new initiatives to support your…
Invest in new premises
Re-finance
Acquire a new business
Exit the industry (e.g., orderly closure or sale)
Obtain/seek specialised turnaround or…
Make formal appointment over business…
None of the above

18. Changing behaviours in order to meet
business goals
20%
19%
15%
13%
9%
2%
22%
0% 10% 20% 30% 40% 50%
More focus on delivering a better customer
experience
More consistent contact with prospects and
customers
A more proactive/ innovative approach to
business development
Develop a deeper understanding of current
customers
A more proactive/ innovative approach to
product development
Another behaviour
No changes

19. The Budget

20. With the benefit of hindsight -what
was wanted from the budget?
23%
13%
22%
44%
30%
15%
38%
45%
32%
29%
35%
41%
39%
42%
46%
28%
35%
44%
Total
Micro
Small
Medium
Metro
Non-metro
Will the 2016-17 Budget include measures beneficial to business
operations?
Yes
I’m
not
sure
No

21. With the benefit of hindsight -what
was wanted from the budget?
16%
13%
8%
7%
11%
8%
7%
6%
8%
3%
20%
18%
17%
19%
13%
20%
17%
15%
9%
9%
28%
27%
33%
31%
28%
25%
29%
22%
16%
22%
21%
18%
21%
19%
20%
19%
22%
15%
16%
11%
15%
24%
22%
24%
28%
29%
26%
43%
51%
54%
Simplification of compliance and reporting process
Cut to the corporate tax rate
Extension of the immediate asset write-off
Increased incentives to innovate
Superannuation guarantee rate rise freeze
Wage subsidies for employing over 50s
Financial advice subsidy
Increased incentives for employing apprentices
Reduction in Sunday penalty rates
Scrapping negative gearing
Impact on my business would be…
Extremely beneficial Very beneficial Moderately beneficial Somewhat beneficial to my business Not at all beneficial

22. Rate of GST to be changed?
27%
25%
20%
38%
32%
21%
68%
16%
16%
17%
17%
13%
20%
57%
59%
63%
45%
55%
58%
32%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total
Micro
Small
Medium
Metro
Non-metro
Bentleys
Yes I’m not sure No

23. Risk Management

24. Do you have a formal
Risk Management process?
34%
21%
34%
56%
36%
31%
13%
11%
14%
17%
14%
12%
53%
69%
52%
26%
50%
57%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total
Micro
Small
Medium
Metro
Non-
metro
Yes I’m not sure No

25. The Top Business Risks
38%
34%
23%
21%
14%
14%
13%
13%
12%
11%
9%
8%
8%
7%
7%
6%
5%
10%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Competitors
Economic volatility
Reputation
Lack of stable, long-term contracts
Information technology reliability
Bad debt
Employee resignation
Natural disasters
Having a successor for the business
Employee injury
Premise leasing arrangements (rent)
Lack of supplier choice
Banking / financier relationship
Security of document storage
Relationships with creditors
Continuity of finance facility(ies)
Under insurance
Another risk

26. Looking closer at Bad Debts
Length of time business would survive without debtors
repaying
27%
25%
34%
23%
27%
27%
21%
16%
17%
33%
23%
19%
26%
28%
22%
26%
27%
25%
8%
8%
10%
3%
8%
7%
19%
23%
16%
15%
16%
23%
Total
Micro
Small
Medium
Metro
Non-
metro
More than six months Four to six months One to three months
Less than one month I’m not sure

27. Amount profit has to decrease for
organisation to be unable to operate
by business location
8%
11%
10%
17%
12%
12% 12%
8%
4%
5%
8%
13%
12%
14%
19%
9%
6%
5%
4%
11%
0%
5%
10%
15%
20%
25%
0-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 71-80% 81-90% 91-100%
Metro Non-metro

28. Level of business insurance for
current organisation
71%
67%
64%
63%
48%
37%
27%
26%
25%
15%
14%
17%
17%
27%
40%
43%
34%
42%
8%
14%
14%
14%
14%
15%
19%
32%
21%
7%
5%
5%
6%
11%
8%
12%
9%
11%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Public liability
Motor vehicle
Building and contents
Workers’ compensation insurance
Professional indemnity insurance
Income protection insurance
Business interruption
Goods in transit
Key person insurance
Yes No Not applicable I'm not sure

29. When was your organisation's banking
relationship reviewed by a trusted advisor?
44%
44%
44%
43%
43%
44%
17%
14%
15%
26%
18%
16%
11%
11%
14%
8%
12%
10%
11%
14%
9%
9%
10%
13%
17%
18%
18%
14%
17%
17%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total
Micro
Small
Medium
Metro
Non-metro
Within the last year One to two years ago Two to five years ago More than five years ago I’m not sure

30. Does your business use an advisor to
manage your banking relationships?
38%
33%
38%
49%
37%
40%
10%
5%
10%
17%
10%
9%
52%
62%
52%
34%
53%
51%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total
Micro
Small
Medium
Metro
Non-metro
Yes I'm not sure No

31. Use of external consultants in making
business decisions
26%
18%
29%
38%
29%
23%
8%
7%
7%
12%
8%
8%
66%
75%
64%
50%
63%
70%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total
Micro
Small
Medium
Metro
Non-metro
Yes I'm not sure No

32. Extent to which the following inform
business decision making process
7%
6%
3%
4%
2%
1%
30%
24%
15%
8%
13%
9%
10%
28%
33%
30%
27%
27%
31%
25%
17%
19%
22%
27%
19%
14%
15%
18%
18%
30%
34%
39%
46%
49%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Your business’ financial data
Accountant(s)
Market forecasts
Friends/ family
Your financer(s)
Advisor(s)
External consultants
Completely Very much Moderately Somewhat Not at all

33. Source of information to inform decision making
32%
31%
25%
22%
21%
13%
11%
8%
22%
0% 10% 20% 30% 40% 50%
Friend / family
Online media
Newspapers
Social networks (LINKEDIN)
Advisors (professional services)
SME association
‘How to’ videos
Somewhere else (i.e. networking events)
I don't look for insights to help with my business

34. THE SME Environment

35. How old is your business? by size
11%
47%
14% 13%
10%
4%
0%
52%
27%
10%
7%
2% 1%1%
74%
8%
6% 6%
2% 1% 1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less than a
year
1 to 10 years 11 to 20
years
21 to 30
years
31 to 40
years
41 to 50
years
51 to 60
years
61 to 70
years
71 to 80
years
Micro Small Medium

36. How old is your business? by location
7%
64%
15%
9%
3%
2% 1%
5%
46%
17%
13% 13%
5%
1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Less than a
year
1 to 10 years 11 to 20
years
21 to 30
years
31 to 40
years
41 to 50
years
51 to 60
years
61 to 70
years
71 to 80
years
Metro Non-metro

37. Digital Disruption

38. Digital Disruption – a threat or
opportunity?
10%
6%
18%
8%
13%
7%
15%
12%
16%
17%
13%
17%
46%
55%
43%
35%
39%
55%
18%
16%
17%
23%
21%
15%
11%
10%
6%
16%
14%
7%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total
Micro
Small
Medium
Metro
Non-metro
A significant opportunity Somewhat of an opportunity Neither threat nor opportunity
Somewhat of a threat A significant threat

39. Possible Benefits of Technology?
60%
53%
50%
50%
43%
40%
39%
35%
12%
10%
16%
15%
20%
28%
13%
17%
29%
36%
33%
35%
37%
32%
48%
48%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Cutting down time spent on admin
Assisting with marketing
Allowing remote access
Cutting admin costs
Improving cash flow with automated invoicing
Improving B2B interactions
Reducing staffing costs
Streamlining your recruitment process
Yes I'm not sure No

40. Has your business used the following?
17%
14%
12%
12%
4%
53%
10%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Automated invoicing
Automated accounting
Automated administration
Automated marketing
Automated recruitment
None of the above
I’m not sure

41. But has there been a benefit?
73%
68%
62%
77%
57%
13%
11%
10%
8%
15%
21%
28%
15%
43%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Invoicing
Accounting
Administration
Marketing
Recruitment
Yes I'm not sure No

42. Does your business operate outside
Australia or New Zealand?

43. Does your business operate outside
Australia or New Zealand?
19%
18%
10%
28%
22%
15%
32%
4%
3%
2%
8%
5%
3%
0%
77%
79%
87%
64%
73%
81%
68%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Total
Micro
Small
Medium
Metro
Non-metro
Bentleys
Yes I'm not sure No

44. What are the challenges of operating
overseas?
3%
3%
2%
2%
5%
5%
25%
13%
16%
8%
8%
11%
31%
28%
26%
41%
30%
23%
16%
28%
26%
20%
25%
28%
25%
28%
30%
30%
33%
33%
Physical distance
Challenges with technology
Cultural differences
Communication styles
Language barriers
Dealing in foreign currency
Extremely challenging Very challenging Moderately challenging Slightly challenging Not challenging at all

45. Awareness of the Trans-Pacific
Partnership (TPP)?
40%
37%
36%
49%
38%
42%
13%
12%
13%
14%
12%
13%
47%
51%
51%
37%
50%
44%
Total
Micro
Small
Medium
Metro
Non-metro
Yes I'm not sure No

46. Trans-Pacific Partnership (TPP)
Threat or Opportunity?
7%
9%
3%
7%
5%
10%
11%
12%
13%
7%
11%
11%
50%
46%
70%
40%
45%
54%
12%
11%
3%
19%
12%
11%
7%
9%
3%
7%
9%
5%
14%
14%
7%
19%
18%
10%
Total
Micro
Small
Medium
Metro
Non-metro
A significant opportunity Somewhat of an opportunity
Neither threat nor opportunity Somewhat of a threat
A significant threat I don’t know enough about it to make a judgement

47. Intention to take advantage of TPP and/or
CHAFTA
15%
14%
7%
26%
21%
10%
31%
29%
39%
26%
27%
35%
54%
57%
54%
47%
52%
55%
Total
Micro
Small
Medium
Metro
Non-metro
Yes I'm not sure No

48. Video – Trade Agreements

49. The Voice Surveys
The Voice 1
April
2014
The Voice 2
November
2014
The Voice 3
August
2015
The Voice 4
March
2016
The Voice 5
October
2016
Business
Confidence
Business
Confidence
Business
Confidence
Business
Confidence
Business
Confidence
The Dining Boom Attitudes to Tax
and GST
Challenges for
SMEs
Risk
Management
The budget
Review 6 months
on
Technology
concerns
Technology – why
the slow uptake?
Investment in
Technology
Digital Disruption NBN and
Technology
Foreign
Investment
Knowledge of
Foreign
Investment
Access to Funding Cross Cultural
Challenges
?
Industrial
relations
The emergence
of The Micro
Business
Succession
Planning and
Superannuation
The Budget
Expectations and
the SME
Environment
?
Selected industry
sectors
All Industry
sectors
All Industry
sectors
All Industry
sectors

50. Australia’s predicted growth
industries
27%
25%
11%
8%
12%
14%
24%
14%
18%
15%
15%
8%
19%
13%
17%
22%
11%
10%
30%
48%
54%
55%
63%
68%
Technology
Agriculture
Education
Construction
Finance
Mining
Major growth industries for Australia in next three years
Largest driver Second-largest driver Third-largest driver Not in top 3