Small Business Momentum Survey March 2024

Businesses sentiment fell in March, with confidence levels dropping 2 percentage points to 28 per cent. The combined impacts of interest rates, weaker customer demand and input costs continue to impact small businesses. 

Businesses cited increased compliance and paperwork as a major concern, with concern about ‘red tape’ increasing over the past year.

Larger businesses were more optimistic in their outlook than their smaller counterparts. Medium-sized enterprises with 20-199 employees (45 per cent) were far more confident about their individual business prospects than businesses with 1-19 employees (26 per cent) and non-employing businesses (28 per cent).

Concerns around the cost of business inputs have risen 3 percentage points between February and March, with 85 per cent of businesses expressing concern. Predicted retail electricity and gas price changes and red tape were the next highest concerns with both issues concerning 73 per cent of businesses.

Staff shortages, interest rates, compliance burdens and weaker customer demand were also cited as factors weighing on confidence.