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Cash flow remained the top concern for small business owners throughout Q3, according to NAB’s SME Business Insights.
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Cash flow concerns a nightmare for Aussie SMEs: NAB
12 December 2024
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The most recent iteration of NAB’s SME Business Insights reflected the sentiments of Australian business owners, 40 per cent of whom remained concerned about cash flow.
According to the research, Q3 saw profitability become more problematic, with the number of SMEs having noted it as a key risk continuing to increase for the second quarter in a row.
Inflation and cost of doing business were also high on the list of biggest risks to businesses; however, easing concerns in regard to government policies and regulations, work/life balance and fuel prices were also highlighted.
NAB data revealed small businesses benefited from Black Friday and Cyber Monday sales, as spending was measured at 23 per cent higher than on a normal equivalent weekend with retailers, cosmetic stores, jewellers, bars and restaurants seeing more sales.
The sales from Black Friday and Cyber Monday this year were also 4 per cent higher than the same period last year.
NAB business direct and small business executive, Krissie Jones, said the latest economic data echoed what she had been hearing from SMEs when meeting with business owners around the country.
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“Small business owners are incredibly resilient, but they’re already stretched and continue to face persistent and emerging challenges that are keeping them up at night,” Jones said.
“While improving work/life balance and easing concerns around government policy are welcome, small business owners tell me these measures can shift quickly, which is why it's critical to reduce red tape.”
“Small business owners remain alive to ongoing risks around cash flow, profitability and access to capital, as well as hiring and retaining staff, which are greater concerns in smaller states and regional areas.”
The Q3 report consisted of 600 Australian small businesses and highlighted that staff turnover and labour shortages were the most significant challenges for small businesses in Queensland, Tasmania and South Australia, as well as SMEs in business services and health services.
Inflation and the cost of doing business remained the biggest issue in quarter three for wholesalers while government policies and regulation were the biggest concerns for SMEs in finance and insurance.
NSW small business owner Colin Moore said maintaining a qualified and specialised workforce had remained challenging for a prolonged period and more support was needed at a policy level.
“If someone is reliable and has good organisational skills, they get snapped up quickly. We’ve been looking for a store manager for more than two years and still haven’t found one,” he said.
“Losing trained staff to competitors is a serious financial hit and compensation or support programs for small businesses would be invaluable.”
“Instead of just providing funding, policies should focus on skilling people and directing the unemployed to industries that need them most.”
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