A new report reveals insights into how business owners are impacted by and are responding to challenging economic conditions.

The Zeller Small Business Resilience Report was collated from the responses of more than 600 Australian businesses. It sheds light on the adverse impacts of declining consumer spending and escalating supply costs and provides insights into the state of Australian small businesses. With a staggering 85% of business owners currently seeking cost-cutting measures, the data underscores the urgent need for innovative solutions to support the growth of small businesses.

Key data from the report include:

  • Biggest factors impacting small businesses today: 42% of small business owners cited their biggest concern as the increasing cost of supplies and materials, while 32% reported reduced consumer spending as their biggest concern.
  • Supply costs are increasing: 80% of small business owners estimated an increase in supply costs of more than 10% in the past year, while 1 in 5 reported increases between 20 and 50%. 
  • Inflation impacts: 67% of small business owners raised concerns over inflation and rising interest rates negatively impacting consumer spending. Thirty-two percent were concerned about customers spending less.
  • Cost cutting is a top priority: 85% of small business owners were actively looking for ways to cut costs — with many opting for tactics such as renegotiating supplier contracts or surcharging EFTPOS fees. 
  • Recruitment: 7.6% were concerned about hiring skilled employees and retaining good staff.

Joshua McNicol, Zeller director of growth, said the report revealed the impact a challenging economic environment was having on small business owners .

"But we’re encouraged to see adversity breeding opportunity. Australian small business owners demonstrate a rare breed of determination in adapting and identifying solutions to sustain their businesses through tough times," he said.

Cutting costs

Read our article Eight ways to cut business costs for tips on how to save on:

  1. Energy
  2. Insurance costs
  3. Taxes, levies
  4. Wages
  5. Supplier costs
  6. Transport costs
  7. Rent
  8. Loan repayments