Changing market conditions mean small business owners need to be more adaptable, and a survey has found those that manage this are enjoying greater financial rewards.
According to new American Express research, close to 65 percent of small businesses have had to change in some way to meet shifting market demands, 10 percent of which are now unrecognisable to the business originally established.
Businesses with turnover of between $200,000 and $2 million have changed most significantly, which American Express said reflects the likelihood of greater financial rewards.
The survey of 1,031 small business owners found the most common ways businesses adapt are:
- Changes in product range and services offered (67 percent);
- Changes in the target customer audience (47 percent); and
- Changes in business structure (25 percent).
American Express Head of Small Business Jason Fryer said local business owners recognise that change is necessary to survive and prosper.
“In a climate of economic uncertainty, small businesses are looking at any external changes that affect the overall health of the business and are responding accordingly.”
Fryer said the research also demonstrated that small business owners are very resilient, and focused on surviving despite challenging market conditions.
“While the majority of small business owners acknowledge that both the global and Australian economies will impact their business in the next 12 months, there is a prevailing sense of ‘getting on with the job’ among operators in this sector.”
“It is encouraging to see that almost half (48 percent) of small business owners say that negative commentary about how businesses are faring has no impact on their confidence as a business owner,” he added.