Australian SMEs are facing increased pressure from rising fuel costs, which are now their biggest concern, according to the MYOB Bi-Annual Business Monitor report.
About 51 per cent of SMEs identify fuel prices as the primary cause of extreme pressure, up from 25 per cent last November.
Additional cost pressures after fuel expenses include utility costs (44 per cent) and interest rates (37 per cent).
A sharp increase in fuel prices also demonstrates the current effect on business margins, disrupting logistics and daily operations across multiple sectors.
Growing global uncertainty and geopolitical problems are also identified as a key risk to SMEs, rising from 14 per cent late last year. This adds to the challenges SMEs face, including surging fuel costs, and negatively impacts their profit margins and overall business confidence.
“This new data reflects a shifting risk landscape where global events and rising operating costs are directly impacting how SMEs plan, invest, and navigate the year ahead,” said Paul Robson, CEO of MYOB.
To alleviate current cost pressures over the next year, more than a quarter of SMEs plan to increase their price margins, while 18 per cent will boost their investment in customer acquisition strategies.
