Region’s business confidence low

THE results are in for the 2020 Ballarat Business Confidence Survey and they are challenging.

Although last year’s survey reported strong confidence in the future with expectations to improve profits, sales and investment returns, 2020 proved to be a challenge for much of the region’s businesses.

The survey had 96 respondents and encompassed 18 businesses from a variety of industries including hospitality, tourism, financial services, and health.

Using software to analyse the collected qualitative data, Federation Business School lecturer Dr Moulik Zaveri said the findings show that business confidence is significantly lower in 2020 compared to 2019 mostly due to COVID.

“There was decreased spending, fear of losing jobs, not knowing where the next meal is coming for some and this was all expected given the times but sometimes it’s just good to just validate what you anecdotally know with objective data,” he said.

“Some of the businesses did really well over this time which mostly depended on the nature of the business or their ability to be agile and quickly responding to the circumstances.

“Some others also took this time to restructure, reflect and introspect and think about how they will change things about how they do business.”

Although bushfires and the COVID-19 pandemic provided a variety of challenges, Dr Zaveri said the data showed those roadblocks also offered a chance to restructure and reflect.

“There was a sense of frustration but also a genuine interest in improving things… the community is very passionate about business,” he said.

“From the 18 interviewees 26 comments were made on the local government in terms of the support they needed, the benefits they were not receiving, costs of setting up and running business.

“There are four areas that businesses said they are going to focus on post COVID… business expansion, stronger relationships with clients and community, effective marketing and communications and wellbeing of staff.”

Chair of Regional Development Australia Grampian’s Region, and Victoria’s Small Business Ministerial Council, Stuart Benjamin, said based on the data, it appeared people were hoping for some sort of strategic plan.

“The key theme that came out is that people were looking for all stakeholders to be a part of the plan,” he said.

“We had seen other regional communities and places like Geelong having a plan for what we were going to do which is where some of the frustration may have come from.

“I was surprised that so many respondents actually wanted government to become more involved with their business… the fact that they wanted to work with local government was really interesting.”

On strategic planning, Dr Zaveri added, “We need a plan which is beyond names, titles, leadership, governments and management because these things change, the region will not and we need to plan for the region.”

Although the report found an overwhelming decrease in business confidence in the region, Dr Zaveri said he noticed a widespread sense of hope among many of the participants for the future.

“All of the people we interviewed unanimously agreed that Ballarat is a growing region with a lot of growth opportunities, many describing Ballarat as attractive… full of opportunities,” he said

“Even during that time of crises in 2020, one thing that didn’t fade from the back of many businesses minds was that Ballarat is still a great region to operate a business.”

Introducing the report Commerce Ballarat deputy-chair Hayley Coates said the organisation hopes the survey will continue in future years.

“Our researchers have done an amazing job we believe in capturing a moment in time pre and during COVID,” she said.

“This report would not be possible without the support of Federation Business School and the wonderful Dr Moulik Zaveri and the City of Ballarat as well.”

The report is currently available on Commerce Ballarat’s website for public viewing.