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60% of SMEs have pivoted since pandemic, survey finds

Adrian Flores
Adrian Flores
28 September 2020 1 minute readShare
business pivot

A recent survey has found that three out of five small to medium enterprises have changed or diversified their business in some way in order to stay afloat during the coronavirus crisis.

According to business network The Entourage, the findings could explain why recent unemployment rates of around 7 per cent have undershot what was seen during the last two recessions in Australia, when unemployment reached over 10 per cent.

It also said it is a testament to the SMEs that have found new ways to keep functioning through this period and, remarkably in some cases, grow.

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The findings mirror similar figures from Allianz Australia that revealed as many as two-thirds of Aussie small businesses have adapted their business in response to the coronavirus crisis, while 20 per cent of small businesses altered their operations entirely.

“The number of our business members pivoting and growing their businesses during coronavirus is astounding,” said The Entourage founder Jack Delosa.

 

“While unemployment is up, and a recession looms, 60 per cent of our business members are surging. That doesn’t sound like the end of the world, does it?”

One business owner surveyed, Shiran Faast, owns hydroponics retailer Aqua Gardening, which capitalised on the trend of Australians spending more time at home.

“We created products and packs to help our customers grow their own vegetables at home, retrained our retail team to be over-the-phone sales consultants, and focused on our online strategy which, until then, had only ever been an afterthought,” Ms Faast said.

“We ended up tripling our revenue in a single month, and did $450,000 last month alone.”

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Source: The Entourage

60% of SMEs have pivoted since pandemic, survey finds
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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