Small business expectations conservative going into 2024

Small business confidence remained low in December, increasing just three percentage points to 33 per cent. Expectations around profitability and revenue were unaffected by the forthcoming holiday period, with a significant portion of businesses (47 and 40 per cent respectively) expecting a decline in profitability and revenue.  

The number of businesses looking to expand their operations dropped 5 percentage points to 32 per cent while concerns around the cost of business inputs increased by 3 percentage points to 84 per cent.  

Predicted retail electricity and gas price increases as well as cashflow and availability of working capital remain the second and third highest issues of concern to small business, with 76 per cent and 70 per cent expressing concern respectively. 

The majority of businesses surveyed expect another tough year, with approximately three in five (58 per cent) anticipating 2024 will be a difficult year.