Australian small businesses are in good shape compared to international management standards, according to Telstra (ASX:TLS).
An analysis by the NSW Business Chamber of more than 400 entrants in the 2010 Telstra Business Awards found that many Australian small businesses show a high degree of financial competency.
Many SMBs are focused on consumer satisfaction, with 71 per cent of those analysed stating they contact their best customers over six times a year.
As a result, 31 per cent of businesses said that all customers were satisfied with the service they received and a further 65 per cent said over 80 per cent of their customers were happy.
“[SMBs] are leading the way when it comes to managing customers and their bottom line,” Telstra Business group managing director, Deena Shiff, said.
The companies are also using technology to their advantage. Around 73 per cent of respondents said they had a website – higher than the broader small business sector.
But less than half of the businesses had a detailed plan for future growth, and 40 per cent lacked a detailed risk management plan.
And while 79 per cent said they had concentrated on innovation in their businesses, 72 per cent do not have an R&D budget.
TLS shares fell 1.83 per cent in Thursday's trading to $2.680.