A new report reveals that small businesses faced an “exceptionally difficult operating climate” during 2023.
The November 2023 independent survey, commissioned by Precedent Productions, includes data showing that 40 per cent of small-business owners suffered a decline in profits during the past six-to-12 months, and 48 per cent cited cashflow and profitability as their most pressing ongoing concern.
The survey also reveals that 64 per cent of small-business owners surveyed consider large and medium businesses as their biggest competitors.
Other notable revelations from the report regarding Aussie small-business owners include the fact that:
- The cost-of-living crisis has led 57 per cent to get a second job, with 43 per cent starting a side hustle to generate extra income.
- 65 per cent are concerned for the future of their small business.
- 71 per cent believe Australian small businesses pay too much tax and are subject to too much regulation.
- 61 per cent feel they do not get enough government support to take adequate action on matters such as climate change, cyber security, innovation, and local manufacturing.
- 45 per cent feel that it is now harder to meet customer-related outputs or delivery deadlines than pre-COVID times.
- 22 per cent have implemented Artificial Intelligence (AI) into their operations, with a further 39 per cent seriously considering it.
Despite the challenges they have faced Government data published this month highlights the key role small businesses play in the national economy, with the sector accounting for one-third of the nation’s GDP and employing two out of every five people in the private sector.
“From high inflation and steep increases in operating costs, to challenges associated with staff hire, productivity and the overall ongoing high cost of living, there’s no disputing that Australian small businesses are currently doing it very tough – potentially, tougher than ever before,” Steve Loe (pictured), Managing Director of Precedent Productions for more than four decades and Founder of the Australian Small Business Champion Awards, said.
“Now more than ever is the time to shine a spotlight on Australia’s small-business operators to praise their resilience and their invaluable economic, social and cultural contributions to the nation,” Loe added.
With a deadline of 15 February for free submissions into the 2024 Australian Small Business Champion Awards, small-business operators from all parts of the country are encouraged to share their challenges and triumphs via online entry at businesschampions.com.au.
“Even in the face of the current challenging economic conditions, so many Australian small businesses persist in backing charities and worthwhile community initiatives,” Loe said. “This support is particularly commendable during the current climate and forms a key part of the Australian Small Business Champion Awards’ judging criteria.
“From regional and rural areas to the suburbs and capital cities, small business operators from all parts of the country are encouraged to enter the Awards – free of charge – as we strive to acknowledge the people behind the small businesses that help to shape their local communities and our nation as a whole,” Loe concluded.
Finalists of the 2024 Australian Small Business Champion Awards will be announced in March and the winners will be revealed in April.
