[adning id=”12070″]

[adning id=”12070″]

Small and medium businesses considering investments for growth in 2024

Small and medium-sized businesses are focusing on strengthening their customer proposition, with 80 per cent planning to use one or more strategies to achieve their business goals and drive growth in 2024.

Small-to-medium enterprises (SMEs) are innovating and investing to respond to market challenges, with many planning to prioritise marketing or create new products and services, while also focusing on staff training and development, according to new research released by CBA today.

The research, conducted in partnership with YouGov1, is being released alongside CBA data which showed a positive trading period for SMEs leading into the festive season, with earnings increasing 5.4 per cent in the second quarter of FY24, compared to the first quarter of FY24.2
Related articles

CBA speeds up business lending

Australian economy remains in ‘relatively good shape’ going into 2024: CBA Chief Economist
Rebecca Warren, Executive General Manager Small Business Banking, said: “Despite a difficult environment posed by inflation, rising interest rates and workforce challenges, the research shows small business owners are planning to take proactive action to drive growth over the coming months.

SBW24
SUV_Expo_2024_Meblbourne

“Our focus is on backing these businesses and the entrepreneurs that run them. We want to help them drive growth and set them up for success.”

The research shows that the top strategies SMEs plan to use to drive growth are investing in marketing (45 per cent) and staff (34 per cent). Other strategies included revising pricing (31 per cent), investing in new product and/or service development (31 per cent), and diversifying stock and the supply chain (13 per cent).

“An uptick in demand for marketing and communications services suggests businesses are intensifying their customer acquisition and loyalty strategies,” Ms Warren said.

“Greater priority is also being given to employee wellbeing and productivity with many focusing on strategies to retain current staffing levels and improve performance with training and development.

“All this is positive for workers and business owners alike, with flow on effects across the entire sector through supply chain and aligned sector ecosystems.”

While the future is looking brighter for some SMEs, a number of challenges remain.

Rising costs and rates were the top challenges cited for most SMEs (60 per cent), including rising input costs (41 per cent), and energy costs (35 per cent). Forty-two per cent of business owners also cited challenges with managing cashflow in the next 12 months. Only 20 per cent of business owners said they had staffing issues such as retaining staff (15 per cent) and attracting staff (14 per cent).

SmallBusinessExpo

“We know many SMEs are innovating and investing to respond to challenges,” Ms Warren said.

“A lot of businesses, particularly in hospitality and professional services, are taking proactive steps such as planning to expand with new revenue streams by creating new products or services (31 per cent) or by targeting new markets interstate and overseas (27 per cent) in a bid to win more customers.”

Small businesses are also investing in new equipment and technology to boost their efficiencies and reduce costs.

“Energy efficient equipment such as electric commercial vehicles, and software including marketing and social media applications are high on the wish list for purchases 2024,” Ms Warren said.

“We are here to support businesses in their efforts, whether it be better managing cashflow cycles or investing to grow for the future.”

1The YouGov survey was carried out online to a sample of 529 Australian small and medium-sized business owners and senior decision makers between 21 December 2023 and 3 January 2024. The sample included 366 small businesses and 163 medium-sized businesses.

Facebook
Twitter
LinkedIn
Email
Print

Leave a Reply

Your email address will not be published. Required fields are marked *

SUBSCRIBE FREE
SME NEWS BRIEFS

Get breaking news delivered
This field is for validation purposes and should be left unchanged.

RECEIVE GOVT GRANT OF $10K to $250K*.

Austrade Approved Business Events
AVAILABLE NOW APPLY BEFORE 30th MARCH 2021 (Condition apply)

  • ABF Events are approved and listed below have been certified by Austrade on the Schedule of Approved Business Events.
  • This allows exhibitors, sponsors, delegates and partners to participate in the Business Events Grant Program. Note event bookings need to be confirmed ASAP to participate in the grant program
  • The program provides 50% rebate (based on a minimum spend of $20k) for approved items including ABF event-media packages, exhibition stands, corporate function tables, delegate registrations.
  • Govt Grant applications are now open until the 30 March. Please contact ABF to discuss how we can assist, we have experts to assist grant applications.
  • Grant funding will cover up to 50% of eligible expenditure incurred in participating at pre-approved business-to-business events as buyers or sellers during the 2021 calendar year.  All grant applications must be submitted for approval via the following link: https://business.gov.au/grants-and-programs/business-events-grants
  • For further information please see this fact sheet.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?