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Small-business owners are confident about the health of their businesses and growth for the year, the SME lender’s research says.
A study commissioned by Prospa of 520 Australian small-business owners has revealed that 70 per cent rated the health of their business as good, while 83 per cent said they were anticipating growth in the next 12 months despite economic headwinds.
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According to the research, businesses are utilising several tactics to achieve growth that included word of mouth (45 per cent), account growth (40 per cent), advertising and marketing (27 per cent), and referrals from other businesses (27 per cent).
Optimistic outlook aside, further findings revealed that 80 per cent of small-business owners predicted major challenges over the next 12 months due to rising operating costs (42 per cent), high inflation (35 per cent), and increased costs of freight and transport as a result of high fuel costs (30 per cent).
In terms of funding growth, the top tactics business owners planned on using were investing in digital technology (23 per cent), upgrading or purchasing new equipment (23 per cent), and training staff (21 per cent).
Furthermore, over a quarter of small-business owners (26 per cent) said they intended on accessing external funds to support the needs of their business over the following year.
According to Prospa, the average amount small-business owners intend to borrow sits at $23,585.
Prospa chief revenue office and co-founder Beau Bertoli commented on the results: “It’s a tough climate and not surprisingly, the survey also showed that 84 per cent of small-business owners anticipate challenges over the next year with increased operating costs, high inflation, and increased transport costs causing the biggest headaches for small-business owners.
“However, the past three years have shown that business owners are resilient, that they can navigate difficult environments and pivot to capitalise on opportunities.
“There’s also no doubt that access to fast, flexible funding is crucial for small businesses at this time. Prospa’s products and flexible solutions allow small-business owners to smooth out irregularities in their cash flow or fund growth opportunities.”
New branding
Prospa recently rolled out a revamped logo and launched a new “all-in-one” business account for small businesses.
According to the lender, the rebrand signified its move away from being purely an online lender to a provider of small-business financial management services.
[RELATED: Prospa unveils rebrand, launches business accounts]
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