The percentage of Dubbo businesses at “high to severe risk” of insolvency has decreased, and the city’s outlook is more positive than many other NSW regions, new data from a specialist accounting firm shows.
The SV Partners Commercial Risk Outlook Report - March 2018 shows only 14 of Dubbo’s 833 registered businesses - or 1.7 per cent - are at risk of failure, down from 2.5 per cent in 12 months.
SV Partners director Daniel Quinn said Dubbo’s outlook was more positive than many other NSW regions, including the Sydney region where 1489 - or 3 per cent - of businesses were at high to severe risk of failure.
“This positive outlook is enhanced by Dubbo’s recent announcement to make a bid for a $20 million Qantas pilot academy that would help build Dubbo’s reputation as an economic centre for western NSW,” he said.
“In fact, many industries which underpin Dubbo’s economic base including construction, agriculture, arts and recreation services, utilities, education and training, professional services and public administration currently have no businesses in the high to severe risk category.
“Employees in these industries can be comfortable spending their money, knowing their employer is reasonably secure.
“This confidence has flow-on effects to industries like accommodation, food services and retail, which rely on the discretionary expenditure of local residents.”
This confidence has flow-on effects to industries like accommodation, food services and retail, which rely on the discretionary expenditure of local residents.SV Partners director Daniel Quinn
Mr Quinn said the results indicated many Dubbo business owners were implementing effective strategies to reduce their risks of financial failure, but he also encouraged vigilance.
“It is important that businesses do not become complacent during this period of growth and use it as an opportunity to implement strategies for long term success,” Mr Quinn said.
The report’s findings show a total of 12,338 businesses or 2.4 per cent of incorporated Australian businesses across all industries are at high to severe risk of financial failure during the next 12 months.
Dubbo Chamber of Commerce president Matt Wright said the report highligted the confidence they were seeing in a lot of sectors at Dubbo currently.
There are some statistics there that could prove attractive to new prospective businesses to open up in the city.Dubbo Chamber of Commerce president Matt Wright
“I think the confidence is quite high overall, but some sectors are feeling the pinch,” he said.
He cited as an example retail, “where we are seeing some lower levels of confidence”.
The report may be of interest further afield.
“There are some statistics there that could prove attractive to new prospective businesses to open up in the city,” Mr Wright said.
He also gave credit to business owners for becoming more “savvy” in the way they operated - taking up online opportunities - and also diversifying their product offering.
Dubbo mayor Ben Shields said the report demonstrated Dubbo’s healthy economy and affirmed Dubbo was a great place to establish new business.
“This release is positive for business and shows a real strength in industry and economic status which Dubbo has historically experienced due to the breadth of the LGA’s industry base,” he said.
“One of the real business strengths of Dubbo is that the economy is not dependant on one industry sector.
“Our economic strength is that we have a broad industry base that can support new opportunities.
“Construction has historically been a very strong industry in Dubbo and this report supports council’s data that construction is one of the key economic drivers.
“Dubbo Regional Council alone has some $78 million of construction projects underway and there is significant activity in housing development and other major projects such as the Dubbo Hospital upgrade and the RFS training facility which support strong economic activity and fuels a positive outlook.”