The amount of Dubbo businesses at high to severe risk of becoming insolvent has stabilised according to a specialist advisory firm.
The SV Partners Commercial Risk Outlook report for August 2018 showed only 15 of Dubbo’s 839 (1.8 per cent) registered businesses are at risk of failure.
“This positive outlook is enhanced by the $17.5 million upgrade of Dubbo City Regional Airport which commenced in April, as well as Qantas naming Dubbo on the shortlist for a proposed $20 million Qantas pilot academy,” he said.
“Many industries which underpin Dubbo’s economic base including agriculture, arts and recreation services, utilities, education and training, public administration, and rental, hiring and real estate services currently have no businesses in the high to severe risk category.”
Mr Quinn said the results indicated that many Dubbo businesses were implementing effective financial management strategies to ensure long term success.
“Businesses need to constantly strive to achieve operational improvements when managing their cash flows and ensuring they can manage their debt levels,” Mr Quinn said.
Dubbo Chamber of Commerce president Matt Wright said while the report findings were pleasing, it highlighted the need for businesses not to be complacent.
“Firstly its pleasing, it’s great to see that businesses have set themselves up here and protected themselves against this sort of thing,” he said.
“It highlights the need for businesses not to be complacent, especially with the business environment we’re in.
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“We’re in unprecedented times with the drought, businesses can get complacent about how and will they be impacted, we think it will be wide reaching.”
Mr Wright said local businesses were in for a challenging quarter, coming into the Christmas period.
“We’re expecting a lot of sectors, especially retail will have a difficult quarter, we hope they have plans and strategies in place to get through that period,” Mr Wright said.
He said the fact the risk level had stabilised was “definitely a positive” and attributed credit to business owners who sought professional guidance.
“Business owners are becoming more savvy and are really utilising professional people around them to help with long-term planning.
“The use of a business coach is more widespread and accepted now, it’s more mainstream. Business people are consulting with their accountants, finance specialists and others they really are utilising professional advice to help protect themselves.”