Home » Blog » Southeast Asian SMEs more confident of economic recovery than Australian counterparts
The recent Asia – Pacific Small Business Survey 2009 surveyed small businesses in Hong Kong, Malaysia, Singapore and Australia to gauge how SMEs in the Asia-Pacific market are weathering the economic storm. The survey compared the markets on growth and employment expectations, access to finance and business management practices.
The survey results indicate that small businesses could be the key drivers of economic recovery in Asian economies but not in Australia. Hong Kong was less positive about growth expectations as compared to Singapore and Malaysia, while Australia was least positive about growth prospects and staff expansion. The survey indicates that Singaporean businesses seem to better manage their resources and hence may be better positioned to use existing resources to grow their business. The survey also reveals that the small business sectors in Hong Kong, Singapore and Malaysia received more direct government assistance as compared to Australia.
It is not surprising to see Asian SMEs more positive about economic recovery. Business owners in Asia are quick to respond to market conditions and tend to adapt more easily than Western counterparts. Not only are Asian companies adept at seeking cost-effective methods of doing business, but they also find opportunities in crisis. For instance, despite the recession, some Singapore SMEs have made forays into international markets. Additionally, government assistance in the form of loans, grants, equity financing and various tax incentives continue to support the SME sector in Singapore.
Business confidence has picked up significantly in Asia and the economic growth potential of the Southeast Asian region is promising. According to the Asian Development Outlook 2009 Update, all the Southeast Asian economies will rebound and record moderately high growth rates in 2010. Despite the economic downturn, the foreign investment drive has continued in Asia, especially in Singapore and Hong Kong and it is only expected to rise in the months to come.
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