The inaugural Zeller Small Business Resilience Report, presented by fintech company Zeller, reveals that 85 per cent of Australian small-business owners are seeking cost-cutting measures in order to survive the current economic and financial challenges that they are facing.
The report found that 42 per cent of small-business owners are concerned about the increasing cost of supplies and materials, while 32 per cent reported reduced consumer spending as their biggest concern. In particular, 80 per cent of small-business owners estimated an increase in supply costs of more than 10 per cent in the past year, while one in five reported increases between 20 and 50 per cent. Meanwhile, 67 per cent have expressed concerns over inflation and rising interest rates that have negatively impacted consumer spending.
On a more positive note, 64 per cent of businesses say it is easier to recruit new staff today than it was twelve months ago.
As a means to cut costs, many small-business owners have opted to go for a renegotiation of supplier contracts or surcharging EFTPOS fees. It is noted that over one in two transactions processed with Zeller EFTPOS Terminal in May 2023 included a surcharge which increased 104 per cent compared to the same month last year.
“The Zeller Small Business Resilience Report reveals the impact a challenging economic environment is having on small-business owners, but we’re encouraged to see adversity breeding opportunity,” Joshua McNicol, Zeller Director of Growth, said. “Australian small-business owners demonstrate a rare breed of determination in adapting and identifying solutions to sustain their businesses through tough times.”
