New research shows that 80% of Aussie small businesses expect revenue to increase or stay the same over the next 12 months.
The YouGov research, commissioned by small business lender Prospa, was carried out in August 2022 with a sample size of 504 small businesses with less than 50 employees.
It found that small businesses are showing grit and creativity to keep their businesses and the economy moving in a tough operating environment, and the payoff of their hard work is improved business health.
“It’s incredible to see the grit of small business owners, who are proactively taking action to ensure their business is thriving within the current environment. The insights from this research clearly show that their determination has been effective in keeping businesses healthy and profitable,” said Beau Bertoli, Co-Founder and Chief Revenue Officer at Prospa.
“There’s also no doubt that access to fast, flexible funding is playing a key role. We’ve observed how our products and solutions are allowing small business owners to smooth out irregularities in their cash flow, or fund growth opportunities.”
Findings include:
- 70% of business owners rate the health of their business as good or very good.
- 25% are worried about unpredictable or unstable revenue, a significant reduction compared to April 2022.
- 26% expect to access external funds over the coming 12 months.
Prospa research findings come on the back of figures released by the Australian Bureau of Statistics (ABS) last week which show household spending rose 18.4% in July 2022 compared to the same time last year – when there was reduced spending due to the impacts of COVID-19 Delta lockdowns.
Prospa findings and the ABS data indicate that, although small business owners are operating in a tough environment with many ongoing challenges, they are showing perseverance and creativity to not only survive, but thrive.
Matt Fraser, Owner and Founder of Northern Sports & Remedial Myotherapy in Melbourne, has increased his client base by 30% in 12 months after using a Prospa Line of Credit to fund advertising.
“It’s brought customers from not just the local area but surrounding suburbs and the Melbourne CBD too. Without the Line of Credit, this wouldn’t have happened,” Matt said.
“I was determined to steer clear of banks and credit cards as there’s a lot more interest with credit cards and the repayments are not flexible like with a line of credit. The application process was seamless and straightforward, and within a day I had funds in my account.”
