A MYOB survey of 500 SME owners and operators in Australia has shown that 52% of those interviewed have higher business confidence than they did before the pandemic. An incredible 78% report to have the same or an increased appetite for risk.
The report suggests that as a direct result from the pandemic and the challenges that SMEs faced, they are now 12% more resilient and better equipped for future upheavals. In other words, Australian SMEs are now showing a change in behaviour in regards to how they plan their future growth and are more confident than ever before.
If anything has been learned over the past couple of years as we have moved through the pandemic and the subsequent governmental restrictions placed on business and individuals, it is that the strength of the Australian business owners has been proven time and time again.
As we now move out of the period of COVID influence, we have the ability to see how we will be able to withstand future disruptions.
During the first year of the pandemic, cash flow levels for SMEs stayed relatively high, thanks to the support packages and stimulus supplied by the government. They have continued to remain high throughout the following years and this stability is encouraging to see, even after government support was reduced.
Of course it is important to obtain good cash reserves for emergencies as this improves your resilience, but this needs to be correctly balanced with using revenue to invest in growth opportunities, which will keep you thriving long term.
If you would like to go through some bespoke spreadsheets and gain insightful information regarding the health of your business, then do get in touch with us here at YBM. We can work with you to determine the best strategies that allow you to remain strong whilst simultaneously growing at a pace that works for you.
Another point made in the survey was that around the onset of the pandemic, invoices were paid faster. The on-time invoices index was up 8.8% in November 2020 from January 2020.
Conscientious and caring SME operators who looked out for one another contributed to this factor, alongside improvements in e-invoicing, which enables swifter and more seamless transactions to occur.
The last few years have by no means been an easy road for all of us, but we have seen that the resilience of the Australian SME business sector is ever-growing and as we adapt to new challenges, we continue to learn from them and improve as a result.
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