Small Biz Buzz: Farming Confidence Drops; Franchising Future Positive

From droughts affecting farming confidence, to the franchising sector's future prospects, here's what's making headlines in the small business world this week.

Farming confidence hits five year low

According to Rabobank’s quarterly rural confidence survey, farming confidence has hit a five-year low off the back of intensifying drought conditions.

With much of the state facing drought conditions, dry weather was cited as the main cause for the pessimistic outlook.

Winter crop plantings hang in the balance, and graziers face hand-feeding stock through winter.

Despite the downbeat outlook, underlying long-term confidence in the sector appeared to remain solid, with strong commodity price prospects continuing to underpin on-farm investment plans.

However, not all farmers are feeling the pressure. Confidence in the sheep sector remains high, with 22 per cent of Australian sheep producers expecting their economic conditions to improve.

Rabobank Australia CEO Peter Knoblanche says, “There is a lot of excitement in the wool industry, with wool now delivering some of the strongest returns growers have ever seen.”

Franchising future looking positive

Following a recent parliamentary inquiry into the franchising sector, IbisWorld has found the future of franchising is not as ominous as it seems.

The research house predicts growth at an annualised rate of 1.3 per cent over the next five years for service-based franchises such as gardening, house cleaning, nutrition, and wellbeing services.     

Ibisworld says the most important success factors for the franchise industry are a loyal customer base, a clear market position, an experienced workforce, and a strong brand name and recognition in the market.

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