A new survey has revealed 89 per cent of small businesses are concerned for their future, with an expert warning anxiety among small business owners is worse than during Covid.
The survey, commissioned by Precedent Productions, who run the Local Business Awards and the Australian Small Business Champion Awards, surveyed hundreds of small business owners from every Australian state in November last year.
It found that 40 per cent of Australian small business owners said their profits fell in 2023 and that while 65 per cent of small businesses are concerned for their future, a further 24 per cent are very concerned.
Inflation-driven increases in expenses and decreased consumer spending due to the cost of living crisis were the top concerns.
Cashflow and profitability were also a major worry for small businesses, along with attracting new customers and attracting and retaining staff.
Precedent Productions managing director Steve Loe said that after decades of dealing with small business operators their current anxiety levels are even worse than during the Covid-19 pandemic.
“From high inflation and exceptional increases in operating expenses, 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,” Mr Loe said.
The survey also found that 20 per cent of Aussie small business owners are working six or seven days a week, with 57 per cent also working in a second job or side hustle to make ends meet.
Small businesses are vital to the Australian economy with government data showing they provide employment for 5.1 million Australians, which is nearly double that of big businesses.
Small businesses also account for one-third of Australia’s gross domestic product (GDP), however 68 per cent of small business owners believe that government and regulators hinder opportunities for small business success.
More than 70 per cent believe that small businesses are required to pay too much tax and are subject to too much regulation.
A further 61 per cent feel they don’t get enough government support for their businesses to take adequate action on matters such as climate change, cyber security, innovation and local manufacturing.
