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Over half of Australia’s small to medium enterprises are expecting positive revenue growth in October 2022.
A 6 per cent increase in confidence for positive revenue growth with small to medium enterprises (SMEs) was observed in non-bank business lender ScotPac’s latest SME Growth Index.
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The biannual SME Growth Index collects feedback from over 700 industry participants covering a range of topics from revenue forecasts, profit expectations, cash flow management practices and growth financing intentions.
It found that more than half of SMEs expect revenue to grow. The confidence boost comes off the back of easing COVID travel restrictions, which started earlier this year.
Over the last year, the average projected growth rate was 5–6 per cent, an increase of 37 per cent year-on-year.
Conversely, however, some SMEs did not predict a raise in revenue, with one in four expecting revenues to decline by an average of 7 per cent in October. This marked the worst growth forecast in the history of the SME Growth Index.
Revenue growth forecasts from the 700+ businesses surveyed were considerably varied, ranging from an increase of 10 per cent to a decline of 17 per cent, indicating continued uncertainty in some parts of the economy.
These mixed forecasts are understandable due to the uncertain economic environment, according to ScotPac chief executive Jon Sutton.
“The widespread of growth projections highlights the uneven impacts of the pandemic, especially in areas like skilled workers and supply chain issues. Business confidence also tends to fluctuate more in Federal election years,” Mr Sutton said.
Despite this, Mr Sutton stated the fact that most businesses are projecting positive growth in revenue, along with the high number of start-ups in the last year is “a great reflection of the resilience of Australia’s SME sector”.
The Adviser is hosting the SME Broker Bootcamp in November, where speakers will unpack how brokers could fully diversify their business and service SME clients, provide examples of pathways other brokers have taken to diversification, present a blueprint on SME lending and how to produce lending submissions that meet the clients’ needs, and offer tips on how to develop a holistic view of an SME client’s business to identify growth opportunities and pain points.
It will take place on the following dates:
- Thursday, 17 November: Waters Edge, Portside Wharf, Brisbane
- Tuesday, 22 November: Parkroyal, Parramatta, Sydney
- Thursday, 24 November: Crown Promenade, Southbank, Melbourne
Places are limited for this free conference so book your place now by registering here.
For more information about the conference, including agenda and speakers, click here.
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