SMEs are doing it tough across Australia as the cost of doing business is creating stress. Cash flow remains a persistent issue for owners.
NAB’s economics data revealed that cash flow is the most pressing concern for around 40 per cent of small- to medium-sized business (SME) owners.
Despite the pressure, NAB business direct and small business executive, Krissie Jones, highlighted how Aussie business owners are incredibly resilient.
“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,” said Jones.
“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.
“Small business owners remain alive to ongoing risks around cashflow, profitability and access to capital, as well as hiring and retaining staff, which are greater concerns in smaller states and regional areas.”
Recent changes to legislation such as stage 3 tax cuts, as well as reduced fuel prices and better work/life balance are reportedly helping reduce the pressure.
Two of these small-business owners are Charmagne and Colin Moore. Running a pool and spa business out of Tamworth – Country Rubber and Foam – they’ve been operating for over two decades.
Recently, the Moores increased their team to 14 employees to meet growing demand. Despite this, maintaining a qualified and specialised workforce remains a challenge.
“Post-COVID, there’s just so much work available in our area. If someone is reliable and has good organisational skills, they get snapped up quickly,” Colin said.
“We’ve been looking for a store manager for more than two years and still haven’t found one.”
Charmagne said: “Instead of just providing funding, policies should focus on skilling people and directing the unemployed to industries that need them most. Losing trained staff to competitors is a serious financial hit and compensation or support programs for small businesses would be invaluable.”
Despite cost-of-living worries remaining, Black Friday and Cyber Monday in 2024 actually proved profitable for Aussie businesses. NAB merchant terminal data revealed that spending over the weekend was 23 per cent higher than on a normal weekend. Retailers, cosmetic stores, jewellery and watch stores, bars, pubs, and restaurants all saw increased sales.
