Australian fintech company, Zeller, has recently published its inaugural Small Business Resilience Report which sheds light on the challenges faced by business owners in the current economic climate.
Key findings from the report indicate that declining consumer spending and increasing supply costs are major concerns for small businesses. Of those surveyed, 42 per cent identified the rising cost of supplies and materials as their biggest worry, while 32 per cent reported a decrease in consumer spending.
The data also reveals that 80 per cent of small business owners have witnessed a supply cost increase of over 10 per cent in the past year, with one in five experiencing hikes between 20 per cent and 50 per cent. Additionally, 67 per cent of respondents stated that inflation and rising interest rates are negatively impacting consumer spending. On a more positive note, the report highlights that 64 per cent of businesses find it easier to recruit new staff compared to twelve months ago. Despite this, the report stresses that 85 per cent of small business owners are actively seeking ways to reduce costs, employing tactics such as renegotiating supplier contracts and implementing surcharges on EFTPOS fees.
These findings underscore the necessity for innovative solutions to support the growth of small businesses. Joshua McNicol, Zeller’s Director of Growth, comments on the report, praising the determination of Australian small business owners in adapting and finding solutions to sustain their businesses during challenging times. Zeller’s financial solutions, which provide real-time data on business payments and spending, aim to assist business owners in making informed decisions to effectively manage their operations.
The report also highlights the strategies employed by small business owners to mitigate rising costs without compromising quality, such as utilizing smarter financial tools and technology to gain a better understanding of cash flow and overall financial position.
Joshua McNicol, Zeller Director of Growth, commented, “The Zeller Small Business Resilience Report reveals the impact a challenging economic environment is having on small business owners — but we’re encouraged to see adversity breeding opportunity. Australian small business owners demonstrate a rare breed of determination in adapting and identifying solutions to sustain their businesses through tough times. Through Zeller’s financial solutions, we’re arming business owners with real-time data from their business payments and spending to make smarter decisions to manage their business through the crunch.”
Small business owners featured within the Zeller report shared strategies they were deploying to mitigate the impact of rising costs, without compromising the quality of their products or services.
Access to smarter financial tools and technology offered by Zeller are helping business owners to better understand their cash flow and financial position.
“We look at our Zeller Dashboard frequently to gain a real-time snapshot of all of the funds coming into our business from EFTPOS, and going out through expenses and spending. We use this information to forecast and measure our success according to our budget – having this information in one place means we can always keep track of business performance and react to changes,” commented Zeller customer Malcolm McCullough, owner of Bill’s Farm in Queen Victoria Market, Melbourne.
Read the full Zeller Small Business Resilience Report here.
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