Small Business Pulse reflects additional uptick: ASBFEO

“With relatively stable economic conditions and a reduced likelihood of further interest rate relief in the near term, the pulse reflects the inherent optimism of enterprising women and men with business owners focused on creating their own opportunities and positive momentum,” he said.

“Small business owners are leaning into fresh ways to expand their offerings and delight customers. There has been continued momentum in research into opportunities to harness technology and artificial intelligence to boost efficiency and power new waves of growth – momentum that’s reshaping the small business landscape.”

The pulse was designed as a health check of objective vital signs for small businesses while also taking into account the “animal spirits” that played a part in driving decision making.

The quarterly results highlighted a strong uptick amongst small business owners in exploring growth and transformation opportunities, and increased inquiries about the logistics of passing on existing businesses to family members.

Evidence of new business owners implementing new ideas while preserving family business legacy was also shown in the data, affirming that succession could bring new insights and perspectives to reinvent businesses, Billson said. 

Risk management was also a key consideration for small business owners, with a strong appetite for practical information on how to increase their cyber security.

“Small business owners are comparing tools and looking for clear information on how this might work for them, particularly through workshops or face-to-face meetings to explore their unique business prospects,” Billson said.

“There is a clear expectation that regulators will provide small businesses with practical information to use these tools to comply with changing requirements, such as single touch payroll and payday superannuation requirements.”

Small business owners have also been inquiring about hiring staff, with many looking for clarity on the differences between employees and independent contractors so they could get things right “from the outset”.

The data also revealed a level of interest in remote workers, largely driven by more small businesses operating from digital offices and the ongoing challenge of finding the right staff in regional communities.

In terms of areas of concern for small business owners, sectors where hands-on workers are essential, like construction, the struggle to fill vacancies is persistent.

Billson said employers were also concerned about ensuring they were paying staff appropriately, with key areas of concern including penalty rates, casual staff and staff aged under 21.

“Concerns about other regulatory requirements have eased this quarter but remain stubbornly high. In addition to employer responsibilities, tax obligations continue to prove challenging, particularly for sole traders and new businesses unsure what startup costs can claim as tax deductions.”

“Business registrations are also a key area of confusion. Many small businesses are uncertain whether they can expand their business services and products under their existing business or require a new business entity or structure.”

Interest in starting a new business also remained elevated over the period, with an even split between men and women over the last two years.