Small Business Momentum Survey September 2023

Small business confidence saw another very modest uptick for the third consecutive month, taking confidence levels to 32 per cent in September, up from 23 per cent in June.  

The RBA's decision to leave the cash rate unchanged for the second time in as many months in October may have contributed to an improved outlook. 

The cost of business inputs remains the top concern for small businesses for the eighteenth consecutive month, with 79 per cent expressing concern. The next highest concern was predicted retail electricity and gas price increases, followed by cashflow and the availability of working capital, with 77 per cent and 73 per cent expressing concern respectively. Staff shortages also remain a challenge with 50 per cent of businesses citing access to labour as an ongoing issue. 

Expectations around profitability and revenue have remained the same, with more than double the number of small businesses expecting a decline than those expecting an increase.