KPMG's annual Private Companies Survey has revealed that the Australian private Companies' are ready to have business expansion plans.

The audit firm stated that the Companies are eyeing at growth plans but tight lending conditions and staff shortages can risk the expansion plans.

Survey conducted in April had shown that more than 75% of the Companies are planning to expand as compared to 30% who were planning to reduce their operations last year.

Head of KPMG's Private Enterprise Marco Di Sebastiano said, "Australian private companies have survived the financial crisis because they adopt a more conservative approach to business planning".

He added that though the number of default cases has increased only 25% are looking for funding, which depicts the self sufficiency.

Di Sebastiano said that it was pleasing to see the positive outlook; however, the concern that many businesses might be reading too much into the rebound is worrisome.

The survey shows that recruitments are again on and 50% Companies had already increased their staff, while for the rest it is expected to have done through recruitment by next six months.

Mr. Di Sebastiano quoted that Companies are facing the problem of scarcity of talent in the market.

The survey revealed that maintaining and developing proper relationships is the priority of the many concerns.