📬Small Business Owners Plan Investments Despite Economic Challenges

New insights from NAB reveal that six in 10 small and medium business owners are planning to invest to grow their business in the next 12 months, despite more challenging economic conditions.

The Details:

People-including hiring and training-new products, and technology are the top investment priorities for SMEs in Queensland, Victoria, and Tasmania.

The research indicates a two-speed economy in Australia, where firms in technology and finance were making growth-oriented investments, while industries such as retail and construction showed repercussions of rising costs and squeezed consumer spending.

According to NAB Executive for Small Business Krissie Jones, the resilience was that of the small business owners who adapted and looked to invest and prepare for growth. Of the four industries, SMEs in finance and insurance had the most investment plans, followed by property services and business services. Excluding hospitality, investment intention was weakest in retail and construction-each facing supply chain disruptions, reduced foot traffic, and higher material costs over the past 12 months.

Zoom in:

Queensland small business owners are investing more in new equipment due to higher interest rates and inflation, especially those in the hospitality sector, as a savvy way to reduce operating costs. Indeed, equipment finance for small businesses is growing-11% in the June quarter to $X, according to NAB's reports.

The Data:

Insights drawn from responses from 700 Australian small business owners.

Why it matters:

Small businesses in Queensland are increasingly investing in new equipment that may give them boosts in productivity and competitiveness, offering potential local economic growth and setting the trend among businesses in the area. Operating expense reduction could help businesses develop better long-term sustainability and profitability.