Start-ups Flourishing Better Than SMEs, Survey Claims

By: Zain Nabi  |   July 4th, 2013   |   Business, News

Start-ups seem to be serving their owners well financially as compared to those who are running SMEs in Australia, a new survey has claimed. According to the survey, which was carried out by an accounting software provider MYOB, start-ups in recent times have seen better growth and that they are performing better than SMEs. Moreover, SMEs have witnessed more declines in revenues as compared to start-ups.

 

Apart from mentioning the revenue, the survey had a lot more interesting things to tell. According to the survey, start-ups generally work less and earn more while SMEs and other business have to spend more time in what they make and earn. Furthermore, a number of start-ups have high hopes to increase their revenue in the coming year. Around 42 per cent of them are of the view that they can generate better revenue this year as compared to the previous year, while only 30 per cent of small businesses think that way. Similarly, the start-ups that expected a decline in their revenue were less (17 per cent) as compared to small businesses (18 per cent).

 

StartupSmart quoted James Scollay, business division general manager at MYOB as saying about start-ups:

 

“It’s very encouraging and great news for the economy to see more start-ups positive and growing.” He added: “Australia is a hugely entrepreneurial economy fuelled by two million small businesses, and we do think government and large business can do more to help these businesses thrive.”

 

Scollay is of the view that start-ups perform well because they make use of new technologies effectively which does not seem to be the case with small businesses. He also highlighted that start-ups do not rely on limited sources to market their services/products and instead try to make the best use of all the possible options. He said of start-ups:

 

“When you correlate the different factors in the survey, the use of technology and the way the start-ups work is different. They’re using more innovative techniques and technology and seeing greater business success.” Talking about the growth prospects of start-ups, he added: “It will be interesting to monitor how they do, but if their existing trajectory and outlook for the future is anything to go by, then this is a segment of the business community that’s likely to do very well.”

 

Photo: VentureCapital3-0