Small firms still hampered by weak profits November 24, 2014 - 12:30PM Small business is struggling to just keep their heads above water, weighed down by weak sales and profits. While conditions have slowly improved over recent quarters, they have yet to get to a stage that would suggest they are about to expand or hire, the latest Australian Chamber of Commerce and Industry small business survey finds. Chamber boss Kate Carnell says worryingly expectations are getting worse. "While there has been a little improvement in some aspects of the survey, most small business operators are concentrating on just keeping their heads above water," she said in a statement on Monday. The survey released shows the small business conditions index rose to 46.8 points in the September quarter, up from 46.1 points previously. However, it remained below the 50-point mark that separates contraction from expansion. Sales and selling prices have been sub-50 since March 2009 and profits remain deeply contractionary at 39.1 points. While the employment index did edge up to 45.5 points, it hasn't been in positive territory since the March quarter 2008. "When small businesses make profits, they feel more able to take risks, invest in new equipment, hire people and expand production," Ms Carnell said. Insufficient demand has been ranked at the top restraint on small firms, overtaking business taxes and government charges as the number one impediment since early 2011.