The most significant concern for Australia’s small and medium-sized enterprises (SMEs) is cash flow, with four in 10 business owners citing it as a challenge, according to a new report from NAB Economics.
Releasing its SME Business Insights report for Q3, the bank revealed profitability and the cost of doing business are also front of mind, while a glimmer of hope is provided by easing concerns around government policies, work-life balance and fuel prices.
NAB Business Direct and Small Business Executive Krissie Jones said small business owners are incredibly resilient, but they’re already stretched and continue to face persistent and emerging challenges that are keeping them up at night.
“While improving work-life balance and easing concerns around government policy are welcome, small business owners tell me these measures can shift quickly, which is why it’s critical to reduce red tape,” she said.
“Small business owners remain alive to ongoing risks around cash flow, profitability and access to capital, as well as hiring and retaining staff, which are greater concerns in smaller states and regional areas.”
Gathering the insights of 600 small businesses across the nation, the survey asked ‘what is keeping you awake at night?’, revealing that cash flow is the most pressing issue for SMEs in Victoria and New South Wales, as well as those in the construction, retail, transport & storage and property services sectors.
In Queensland, Tasmania and South Australia, staff turnover and labour shortages are the most significant challenges for small suppliers, which is mirrored across the business services and health services sectors.
Profitability is the top issue for those in Western Australia, the accommodation and hospitality sectors, while inflation and the cost of doing business is the biggest stumbling block for wholesalers. Elsewhere, government red tape is the biggest concern for SMEs in finance and insurance.
