A new survey from small business platform Xero reveals that 55.3 per cent of Australian small businesses are concerned that the increase in cost of living will mean they can’t hit their summer sales targets. And 28.1 per cent of small businesses are concerned that the cost of new supplies and equipment will prevent them from achieving their targets.
The data from the Xero Small Business Insights Special Report – Cash Flow Crunch report found that small businesses in Australia already receive almost 20 per cent less of their annual revenue over January and February which comes at only seven per cent compared to an average of 8.6 per cent in the other 10 months of the year.
“While most Aussies know the importance of shopping small over summer, these results, and the stories we hear from small businesses, reinforce just how important it is for us to support our local economies at a critical time of year,” Will Buckley, Country Manager for Xero in Australia, said. “We’re all feeling the effects of the increased cost of living, the summer holiday period is a valuable way to choose to spend time, and money, on small businesses who have had a turbulent few years.”
The survey also found how supporting small businesses can have a flow-on effect on the local community as 34.9 per cent donate to local community groups or schools, 26.8 per cent doing volunteer work, and over 30 per cent sponsor local clubs or give to local business initiatives.
“Seeing how much small businesses mean to a local community reinforces the importance of supporting small where and when you can,” Buckley said. “These results show that a dollar spent at your small business will have a flow on effect on your local community.”
When asked what further support could be provided to small businesses at this crucial period, 49.7 per cent requested grants for technology to support in business management, while 41.4 per cent requested rebates for customers who spend at small businesses. Beyond fiscal support, over 75 per cent of small businesses said that support with word of mouth or social media is vital to their business.
“Supporting small businesses doesn’t always need to be financial; sharing recommendations with your network and taking the time to leave a positive review are small things that have a big impact,” Buckley added. “Whatever form it takes, our message is to get out there and support the small operators this summer.”
