However, despite this, the survey revealed that nearly 60 percent of small businesses described themselves as healthy, with one in five expecting to continue investing in their people and replacing staff as necessary and only 6% are considering laying off employees.

"It appears that many small businesses have clearly been hit by the reality of the global economic downturn as many of Australia's small businesses are feeling the pinch and experiencing increased stress in this climate of uncertainty," said Inese Kingsmill, director of small and mid-market business, Microsoft Australia.

"However, the survey also found that a larger percentage of businesses are still healthy, which points to the resilience of the sector. While it's challenging to look beyond the current economic circumstances, small businesses have an opportunity to look through the uncertainty and start preparing their businesses for the when the economy turns upwards."

The March 2009 survey, conducted by Galaxy Research, interviewed owners and managers of SMBs throughout Australia and measured their level of stress relative to the challenges they are facing in today's business environment. The research has painted a clear picture of what Australian small businesses are prioritising in today's economic climate.

Release from Microsoft Small Business and Partners