The latest edition of non-bank SME lender ScotPac’s SME Growth Index reveals that 57 per cent of Australian SMEs expect positive revenue growth over the next six months, a seven-year high according to the Index. On the downside, a record 32 per cent are forecasting a contraction in growth.
For a third straight Index report, the range of SME revenue growth projections stretched to a record margin, from a high of +13 per cent to a low of -22 per cent.
ScotPac CEO Jon Sutton said that although it was clear that rising costs were taking a toll on business owners, the resilience of Australian SMEs was again on display in these results.
“Australian SMEs account for 97 per cent of all businesses in this country and employ nearly eight million people, so the way they feel about their growth prospects has a big say in the health of the national economy,” Sutton said. “While the full impact of recent award and minimum wage increases is yet to filter through, the fact that average SME growth forecasts remain at near record levels is a great sign of confidence as inflation begins to taper.
“The positivity in our regions is significant, particularly in WA and Queensland, and it highlights the often-overlooked role of SMEs in our natural resources supply chain,” Sutton added. “It is also symbolic of the resurgence in our domestic and international tourism sectors. At the other end of the scale, the outlook for Victorian SMEs remains at pandemic-level lows and is nearing the point where policy intervention is required to provide targeted relief and boost opportunities and confidence.”
Sutton encouraged all SME owners to talk regularly with their brokers and advisors to assess their business finance options, regardless of their stage of growth.
“In the current economic climate, it is more important than ever for SMEs to ensure they are getting the right advice so they can access the support they need when they need it,” Sutton concluded.
