The latest SME Sentiment Tracker reveals that, despite a slight dip in August, SME revenue remains steady with 68 per cent reporting turnover comparable or exceeding pre-pandemic levels. The research, conducted by business market research firm ACA Research in partnership with Ovation, also shows positive news on profits, with 52 per cent of SMEs reporting a profit in August, continuing the upward trend that commenced in early 2022.
While sentiments regarding global and local economic conditions remain highly negative, sentiment has improved following the very weak data reported in July. Only 52 per cent of SMEs now expect weaker conditions in Australia over the next three months compared to 65 per cent last month.
It is also noted that concerns regarding supply chain issues (68 per cent), energy (80 per cent) and fuel costs (80 per cent) have all come off the very high percentage of SMEs expressing anxiety in these areas reported in July.
To enable growth SMEs will need more staff, but filling positions continues to be challenging with a scarcity in applications (75 per cent), lack of qualified candidates (58 per cent) and competition for talent (34 per cent) all hindering recruitment efforts.
Accordingly, the ongoing upward trend in wage growth spiked significantly in August, indicating SMEs are lifting remuneration and benefits to attract and retain staff in this highly competitive market.
“In summary, SMEs are continuing to adapt to the challenging conditions with sentiment remaining relatively positive and growth expectations improving,” ACA Research, Managing Director, James Organ said. “The staffing challenges are ongoing, with wage growth now escalating as SMEs battle to attract and retain talent in an historically tight labour market.”
