Over half of Aussie small businesses concerned rising cost of living will hamper summer sales
Reminder to support local as reduced spending and increased costs expected to put the squeeze on small business
Melbourne — 29 November, 2022 — A new survey from Xero, the global small business platform, has revealed more than half (55.3%) of Australian small businesses are concerned that increased cost of living pressures will mean they can’t hit their summer sales targets, serving as a great reminder for consumers to support small businesses this summer.
The survey – conducted by Xero to understand how to better help small businesses over summer – also revealed that over a quarter (28.1%) of small businesses are concerned that the cost of new supplies and equipment will prevent them from achieving their targets.
These revelations are a particular concern as recent data from the Xero Small Business Insights Special Report - Cash Flow Crunch report uncovered that small businesses in Australia already receive almost 20 percent less of their annual revenues over January and February - 7 percent compared to an average of 8.6 percent in the other 10 months of the year.
Will Buckley, Country Manager Australia, Xero, said, “While most Aussies know the importance of shopping small over summer, these results - and the stories we hear from small businesses - reinforce just how important it is for us to support our local economies at a critical time of year.
“We're all feeling the effects of the increased cost of living, the summer holiday period is a valuable way to choose to spend time - and money - on small businesses who have had a turbulent few years,” says Buckley.
Small businesses impact on local economy revealed
The survey also revealed how supporting small businesses has a flow on effect to the local community, with over a third (34.9%) noting they donate to local community groups or schools, over a quarter (26.8%) choose to volunteer, and over 30 percent sponsor local clubs or give to local business initiatives.
“Seeing how much small businesses mean to a local community reinforces the importance of supporting small where and when you can,” says Buckley. “These results show that a dollar spent at your small business will have a flow on effect on your local community.”
Late payments still costing businesses
Late payments are unfortunately still costing small businesses. Xero Small Business Insights data shows half of all payments to small businesses are paid late, with the manufacturing and information, media & telecommunications industries seeing the largest additional seasonal delay in late payment times. These late payments then have a knock on effect, with over 40 percent of small businesses surveyed admitting they struggle to then pay their suppliers, or even staff, on time.
“Tools such as eInvoicing are one way to help reduce late payments, otherwise I’d highly encourage business owners to engage their accountant or bookkeeper at this time of year to ensure they can plan to manage cash flow ahead of the summer season,” says Buckley.
Technology support still needed
Finally, when asked what further support could be provided to small businesses to support summer trading, nearly half (49.7%) requested grants for technology to support in business management, while 41.4 percent requested rebates for customers who spend at small businesses.
Beyond fiscal support, over 75 percent of small businesses surveyed noted that support with word of mouth or social media is vital to their business.
“Supporting small businesses doesn’t always need to be financial; sharing recommendations with your network and taking the time to leave a positive review are small things that have a big impact. Whatever form it takes, our message is to get out there and support the small operators this summer.”
Xero Australia | Tiana Barns | +61 401 343 395 | email@example.com
Xero is a global small business platform with 3.5 million subscribers which includes a core accounting solution, payroll, workforce management, expenses and projects. Xero also has an extensive ecosystem of connected apps and connections to banks and other financial institutions helping small businesses access a range of solutions from within Xero’s open platform to help them run their business and manage their finances. For three consecutive years (2020-2022) Xero was included in the Bloomberg Gender-Equality Index. In 2021, Xero was included in the Dow Jones Sustainability Index (DJSI), powered by the S&P Global Corporate Sustainability Assessment. Xero is a FIFA Women’s Football partner under FIFA’s new commercial structure.
About Xero’s survey
Insights were obtained from research conducted via Pureprofile, an Australian owned Data and Insights business that sampled 302 Business owners; 45% Males and 55% Females. The fieldwork was conducted between 26th October - 4th November 2022.
Related media and enquiries
For all media enquiries, please contact the Xero media team.
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