New research shows more than half of Australian small businesses expect profits to increase once vaccination efforts have been completed in the country. According to AI forecasting tool giniPredict, 63 per cent of small businesses expect profits to increase once the country is fully vaccinated, with 44 per cent anticipating growth of 10 per cent or more.
Half of the respondents also expect to see a boost to profits during the course of 2021, with 30 per cent expecting the rise in the third quarter and 20 per cent in the fourth, while18 per cent even going far in saying that the rise will occur within the current quarter, though another 18 per cent say that the growth will only take effect in the next year.
The report also notes that despite the rising death tolls and the continuing influx of negative news brought by the pandemic for more than a year now, 52 per cent of small-business owners feel more anxious about the future of their businesses than about death from the coronavirus (as cited by 32 per cent).
It also revealed that small-business owners are broadly supportive of the actions taken by government to mitigate the impact of the pandeemic and lessen the economic damage. 46 per cent believed that these actions helped their businesses to survive or even grow, while 28 per cent felt that the actions harmed them.
“Small businesses are the bedrock of the economy,” Ray Wyand, CEO of giniPredict, said. “It’s a positive and welcome sign to see the degree of optimism and confidence that small-business owners have in their prospects once vaccination programmes have been fully rolled out.
“We’re not out of the woods yet, of course, and they’re going to have to remain alert, stay agile and ensure that their business forecasts reflect constantly shifting realities,” Wand added.