SMEs anticipate growth despite supply chain issues

Approximately four in five small businesses believe the next 12 months will see conditions improve, but have flagged inflation and supply chain issues.

19 May 2022 

Business lender Prospa conducted a survey of 511 Australian small businesses from 19 to 26 April. The results show that the vast majority of respondents are confident about the present and the near future.

Roughly 70% of small and medium-sized enterprise (SME) owners felt the health of their small businesses was “good”, while 81% of SMEs said they were anticipating growth over the next 12 months.

Further, almost half (42%) of respondents expressed that they were predicting their revenue to lift over this same period.

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However, this positive foresight was not universal, with Prospa also reporting that almost nine out of every 10 respondents (87%) were expecting some challenges to their businesses over this same 12-month period. 

The most common concerns shared among these SMEs were increased operating costs (40%), rising transportation costs (36%) and unstable revenue (34%). 

Inflation (24%) and supply chain disruptions (23%) were also reported as key issues. 

This anxiety appears to be reflective of how small businesses had, or were intending to operate, with Prospa’s findings concluding that around 70% of the respondents had either made, or were making, changes to their business. 

The most common response to this was towards consumers, with one-third (34%) of this cohort stating they had lifted the price of their products in order to keep their business operational.

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