Today, Commonwealth Bank of Australia (CBA) unveiled new research in collaboration with YouGov, shedding light on the innovative strategies employed by small and medium-sized enterprises (SMEs) to tackle market challenges.
The research coincides with positive trading insights from CBA data, showcasing a 5.4% increase in earnings for SMBs during the second quarter of FY24 compared to the previous quarter.
Rebecca Warren, Executive Group Manager of Small Business Banking at CBA, says the resilience of SME owners amidst inflation, rising interest rates, and workforce hurdles,.
“Despite the challenging economic landscape, small business owners are gearing up to drive growth in the upcoming months,”
“Our commitment is to support these businesses and the visionary entrepreneurs behind them, empowering them to achieve sustainable success.”
The research reveals that SMEs are prioritising marketing initiatives (45%) and staff development (34%) as key drivers of growth. Additionally, strategies such as revising pricing (31%), investing in new product and service development (31%), and diversifying supply chains (13%) are gaining traction among SMEs.
Ms. Warren highlighted the surge in demand for marketing and communication services, indicating a strategic focus on customer acquisition and retention.
She also underscored the increased emphasis on employee well-being and productivity, with many businesses implementing strategies to enhance staff retention and performance through training and development programs.
While SMEs are optimistic about growth opportunities, challenges persist, particularly regarding rising costs and rates, with input costs (41%) and energy expenses (35%) cited as primary concerns. Managing cash flow (42%) emerged as a significant challenge for business owners in the coming year.
Acknowledging the evolving landscape, Ms. Warren said, “Many SMEs, especially in the hospitality and professional services sectors, are proactively exploring avenues for expansion, including the creation of new revenue streams and targeting new markets interstate and overseas.”
In addition to strategic investments in marketing and staff development, SMEs are leveraging new technologies and equipment to enhance efficiency and reduce costs.
She also emphasised the growing interest in energy-efficient equipment and software solutions, aligning with businesses’ goals for sustainable growth.
CBA remains committed to supporting SMEs in their endeavors, offering tailored solutions to navigate cash flow cycles and fuel future growth.
About the Research: The YouGov survey was conducted online, targeting 529 Australian SME owners and senior decision-makers between December 21, 2023, and January 3, 2024. The sample included 366 small businesses and 163 medium-sized businesses.
Comparative statistics reflect the average turnover of small and medium-sized business customers during the first and second quarters of FY24 in 2023-24.
