Small and medium businesses in South Australia are more pessimistic about their prospects than they’ve been for more than a year, a business survey has found.

The Sensis Business Index survey of 1000 SA small and medium businesses showed 34 per cent of those surveyed were positive about their business prospects in the year ahead with 28 per cent expressing concern.

The index balance of +6 – a fall of 13 points – was the lowest score in more than a year, and way below national levels.

National confidence levels were steady at +27 (the score reflects the difference between positive and worried businesses).

Business support for the State Government was better than at any time in the past year “but it is still the least well regarded of all the state and territory governments”, according to Sensis.

Nine per cent of those surveyed believed the Government’s policies supported small business while more than a third – 36 per cent – have the opposite view.

“This Government has received high negative ratings for the last six quarters, criticised primarily for taxation being either too high or increasing, and for not understanding small business needs,” said Sensis chief executive officer John Allan.

He said the Government faced “significant challenges” to build confidence in South Australia, particularly with the end of car manufacturing looming and unemployment rising.

Nationally, perceptions of the economy have deteriorated.

“The biggest concerns centred around lack of work or sales – and consumers not spending while the economic climate, not surprisingly, also factored high on their list of concerns,” Allan said.

Confidence was highest in the hospitality sector while the lowest levels were recorded in building and construction.

– InDaily