Small Business Momentum Survey August 2023

Small business confidence has continued its modest upward trend, rising by 2 percentage points to 30 per cent between July and August. Relief from interest rate rises appears to have contributed to an improved outlook for small business.

Despite signs of a momentum shift, businesses continue to face challenges including the increasing cost of business inputs, weakening demand and cash flow challenges.

Businesses report they are struggling to cover increasing operating costs while ensuring they remain price competitive for their customers.

Expectations around revenue and profitability remain low, with only 12 per cent expecting an increase in profits as opposed to the 41 per cent expecting a decline.