Why do so many small to medium enterprises fail? Lack of business acumen The myth is that most people who start small to medium enterprises are entrepreneurs. Along with the fatal assumption that an individual who understands the technical work of a business can successfully run a business that does that technical work. web: resultsprofessionals.com blog: kerylfedrick.blogspot.com
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Results Professionals Australian Economic views 1960s to now
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Why do so many small to medium enterprises fail?
Lack of business acumen
The myth is that most people who start small to medium enterprises are entrepreneurs.
Along with the fatal assumption that an individual who understands the technical work of a business can successfully run a business that does that technical work.
Motor Vehicle ownership steadily increases to one in two.
16% of Australian homes have access to the Internet
Average portion of income spent on housing 35.4%
Home loan interest rates 9.13% - 17%
Inflation rate average 8.41% CPI average 70.2675
1990’s Australia The decade of reform and technological change
1990’s – 2000’s Australia
Gen Y
The decade of Reform and Technological Change Suffering from the effects of the recession we had to have
A decade of financial hardship
“Economic Rationalism”, and "Backlash" “globalisation", "outsourcing", "downsizing" and "corporate restructure"
The Internet brought Australia closer to the rest of the world than it ever had before. GST introduced
New media introduced to house-holds, the internet, pay television, and an increasing percentage of Australians owning computers.
Most families are now two income
Average portion of income spent on housing 50%
Home Loan Interest Rates 17% - 5.5% Inflation rates 2.2%
CPI average 113.987
Car ownership is at saturation point
2000’s Australia
2000’s – 2010’s Australia Net Gen
Australian businesses collapse leaving consumers high and dry.
25 Australian major companies collapse GFC hits although Australia is reasonably protected
89% of Australians have access the internet at home.
Markets are polarising, brands globalising, consumer expectations rising, space retracting,
transactions digitising and economies still struggling.
Home loan interest rates 8.05% - 5.5% Inflation rate average 3%
CPI average 165.417
New retail world with the fantastic rise of bargaining websites such as; Groupon,which created a half a billion dollar business from a standing start in two years,
and recently attracted a US$6 billion offer from Google.
The post gfc consumer is making deliberate and considered buying choices with a conscience, they will pay but only if it represents value. Engaging with your customers is more important now than it has ever been. The solutions are inexpensive and require creativity and understanding of who your customer is and what they want.
What does this new customer want?
Value and Values Customers are demanding value and want to see your business with values, social, environmental etc. a business that is less selfish.
Discounting is out engineering real value into the offer first, we have become numb to discounts, how low can you go.
Distinctive: Customers are sick of the cookie cutter solution to shopping centers and are looking for a unique experience, brands with a history or a story,
Personal: Customisable, and tailored, once again customers do not want to be seen as just another customer. Businesses and stores need to have high interaction and high touch level, such as Apple stores
Luxury is coming back, but not faux luxury, value for money, well made, lasting luxe Quality second hand will be the new, new