A new report indicates that SME confidence continues to rise with the decline of COVID-19 cases being recorded and the easing of restrictions across Australia.
This latest COVID-19 SME Weekly Tracker research, conducted by market research consultancy ACA Research and customer experience research consultancy Fifth Quadrant, reveal that noted that 59 per cent of SMEs reporting declining revenue compared to 69 per cent a month previously. As a result, 45 per cent of SMEs are now expecting a return to pre-COVID revenues by the end of the year.
In addition, the report indicated positive jobs data, with a sharp decrease in the proportion of SMEs (at 26 per cent) reporting a reduction in employee numbers due to COVID-19. Meanwhile, the number of SMEs filling their job roles rose from 12 per cent to 18 per cent over the past month, with hospitality surprisingly driving the greatest demand.
Despite the positive revenue and jobs data, most SMEs continue to expect long-term implications for the global economy in the wake of the pandemic. Nevertheless, the report indicates that Australian SMEs are gradually becoming more confident regarding the country’s economy, as well as their own prospects. In particular, fears about the prospects of their business surviving has dropped to 20 per cent, from 32 per cent in early September.
“Sentiment amongst SMEs is ramping up with strong revenue and jobs data signaling a boost for the Australian economy as we approach the Christmas period,” ACA Research Managing Director, James Organ, said.
“The reduction in JobKeeper payments and other stimulus programs does not seem to have dented confidence as SMEs continue the road to recovery. While other countries struggle to contain the COVID-19 pandemic, it is fantastic to see Australian SMEs increasing recruitment and investment activity to drive growth.”
