Small businesses anticipate growth, despite tough conditions
Research carried out by Australia’s leading online small business lender, Prospa, shows the majority of Aussie small business owners rate the health of their business as good and are anticipating growth this year despite the tougher economic climate.
A recent study1 commissioned by Prospa of 520 Aussie small business owners showed 70% rate the health of their business as good and more than four in five (83%) are anticipating growth in the next 12 months.
The top tactics businesses are employing to achieve growth included word of mouth (45%), account growth (40%), advertising/marketing (27%) and referrals from other businesses (27%).
Despite the optimistic outlook, 84% of business owners anticipated major challenges over the next 12 months, driven by increased operating costs (42%), higher inflation (35%) and increased costs of freight and transport due to rising fuel costs (30%).
Prospa Chief Revenue Officer and Co-Founder Beau Bertoli says the resilience and entrepreneurial spirit of small business owners continues to inspire him.
“However, the past three years have shown that business owners are resilient, that they can navigate difficult environments and pivot to capitalise on opportunities.”
The survey also shows more than a quarter (26%) of business owners intend to access external funds to support the needs of their business in the next 12 months. Investing in digital technology (23%), upgrading or purchasing new equipment (23%), and training staff (21%) are the top growth tactics small business owners plan to use external funds for.
Lahra Macnab, founder and director of Lala Design has used loans from Prospa to fund growth in her wedding stationery brand. Harnessing growth opportunities, Lahra decided to reinvent her business in 2022. With a rebrand and digital refresh, Lala Design became the Paper & Ink Studio.
She said it was an easy decision to approach Prospa to fund her latest project, as they understood the unique challenges small businesses face.
“It’s easy and non-judgmental. Prospa has helped me grow my business and given me peace of mind.”
For more information about Prospa visit prospa.com.
For further information, contact [email protected].
1. The study was conducted by YouGov, commissioned by Prospa, with a sample of 520 small businesses with less than 50 employees in January 2023.
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