The Commonwealth Bank of Australia (CBA) recently partnered with YouGov to release groundbreaking research, shedding light on the innovative strategies embraced by small and medium-sized enterprises (SMEs) to navigate market challenges.
This unveiling coincides with optimistic trading data from CBA, which reveals a notable 5.4% increase in earnings for SMEs during the second quarter of FY24 compared to the previous quarter.
Rebecca Warren, Executive Group Manager of Small Business Banking at CBA, applauds the resilience exhibited by SME owners in the face of economic headwinds such as inflation, rising interest rates, and workforce obstacles.
“Despite the challenging economic landscape, small business owners are poised to spearhead growth in the upcoming months,” Warren said.
“Our unwavering commitment is to bolster these businesses and the visionary entrepreneurs propelling them, empowering them to achieve sustainable success.”
According to the research, SMEs are placing a premium on marketing initiatives (45%) and staff development (34%) as pivotal drivers of growth.
Furthermore, strategies like adjusting pricing (31%), investing in new product and service development (31%), and diversifying supply chains (13%) are gaining momentum among SMEs.
Warren highlights the surge in demand for marketing and communication services, underscoring a strategic emphasis on customer acquisition and retention.
She also underscores the heightened focus on employee well-being and productivity, with many businesses implementing strategies to enhance staff retention and performance through training and development programs.
While Australian SMEs express optimism about growth prospects, challenges persist, notably concerning rising costs and rates.
Input costs (41%) and energy expenses (35%) are cited as primary concerns. Managing cash flow (42%) is identified as a significant challenge for business owners in the upcoming year.
Acknowledging the evolving landscape, Warren notes, “Many SMEs, especially in the hospitality and professional services sectors, are proactively exploring avenues for expansion, including the creation of new revenue streams and targeting new markets interstate and overseas.”
In addition to strategic investments in marketing and staff development, SMEs are leveraging new technologies and equipment to enhance efficiency and reduce costs.
There is also a growing interest in energy-efficient equipment and software solutions that align with businesses’ goals for sustainable growth.
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CBA remains steadfast in its commitment to supporting SMEs in their endeavors, offering tailored solutions to navigate cash flow cycles and fuel future growth.
About the Research: The YouGov survey was conducted online, targeting 529 Australian SME owners and senior decision-makers between December 21, 2023, and January 3, 2024.
The sample included 366 small businesses and 163 medium-sized businesses.
Comparative statistics reflect the average turnover of small and medium-sized business customers during the first and second quarters of FY24 in 2023-24.
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