Small Business Momentum Survey April 2023

Small business confidence has finally seen some modest growth, increasing by 5 percentage points to 35 per cent in April, compared with the previous month. It was the first rise in confidence since January. Obtaining supplies is also reported to have become less challenging for small business, with the level of concern over this issue dropping 20 percentage points since June 2022.

Cost of business inputs remains the predominant concern for a thirteenth consecutive month, followed by predicted retail electricity and gas price increases, cash flow and availability of working capital.

Impacts relating to inflation and consumer spending continue to contribute to subdued business conditions and economic uncertainty, with the number of business planning to expand or alter their operations falling 5 per centage points since March.

There has been a modest increase in the percentage of businesses expecting profits and revenue to increase, but the majority is still expecting a decline.

Given the challenges faced the Commission is strongly recommending small business focusses on  cashflow management and that business particularly tradies and small business in the construction industry are familiar with obligations and protections such as the Security of Payments for the construction industry ensuring compliance Security of Payments Act (NSW).

Related links:

• Small Business Momentum Survey