SMEs ask Santa for ‘less debt’, ‘more business’ and ‘better cash flow’

Christmas Spending Survey 2009

Results of MSI Global Alliance’s 2009 Annual SME Christmas Spending survey in Australia and New Zealand show that 66% of participating companies will hold a Christmas function this year. In 2008 72% of the same companies held a Christmas function. More than 600 SMEs participated in the poll.

It’s interesting to note that even though fewer companies are holding a staff Christmas function this year, those having a function are spending more than they did in 2008 - with 30% of companies spending more this year then last and 17% spending less this year.

Some key findings were:

• The majority (54%) of SME businesses will be spending between $1001 - $5,000 on their Christmas function.
• Only 6% of employees will need to contribute to the Christmas party personally, which is down from last years 11%.
• 61% of businesses will allow company employees to bring partners to this years Christmas party, which is fractionally up on last years 60%.

Although businesses hosting Christmas parties are not cutting the cost of their festivities, Christmas gift spending on their employees has fallen since last year. While 45% of employers will be giving gifts to their team members this year, in 2008 more than 50% of employers presented gifts.

Economic Situation - and gifts from Santa

The survey results also showed that despite the economic situation seemingly improving over the last six months of 2009, 78% of businesses have not freed up spending, while 20% have. Comments received from survey participants indicated this is due to a lack of genuine confidence that the economy is actually improving, particularly for SMEs. One business owner commented “Who says the economic situation has improved?” So, despite an array of economic indicators pointing to an upturn, many SMEs are continuing to contain their expenditure.

When MSI posed the question to the businesses of what they wanted Santa Claus to bring them for Christmas, popular responses were “better cash flow”, “More business”, “Stability”, “More clients and work”, “Lots of contracts” and “Less debt”.

When asked what industries would continue to suffer the most from the recent economic down turn, the responses were mainly directed at the Construction/Property Development and Finance and Banking industries – despite bumper profits for the big banks.

Consumer Christmas Spending

In terms of consumer spending on Christmas gifts, 64% of males and 60% of females said they would be spending the same as they did last year. While 12% of men and 13% of women said they would spend more and 24% of men and 26% of women will be spending less this year than last year.

Some key findings on how much consumers are spending on gifts this year:

According to the results, without question clothes will be the most popular Christmas gift item, with 47% of respondents stating they would be buying them as gifts this Christmas. Other popular items included toys (41%), gift cards (37%), books (35%), jewellery (33%) and home wares (27%).

ENDS

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To arrange an interview with MSI spokesperson, Charles Hornor, contact:

James Officer

(03) 8399 9513

james.officer@strategyco.net

About MSI Global Alliance

Legal & Accounting group MSI Global Alliance was founded in 1990 in London, and has grown to become the world’s 15^th largest professional services grouping, with more than 250 member firms in over 100 countries worldwide.

MSI’s representation in Australia and New Zealand currently consists of 13 leading accounting and legal firms in key commercial and financial centres. For information on the MSI ANZ Group in Australia and New Zealand, please visit www.msi-anz.net.