According to new research from RFI Global, commissioned by Prospa, nearly half of Australia’s small and medium enterprises expect a downturn in turnover by 2025 due to increasing economic pressures. Additionally, 54% of SMEs foresee the need to invest more in their businesses to maintain future cash flow amidst these challenging times.
Economic downturns and supply chain disruptions have led to increased costs for more than half of the SMEs surveyed. Labour costs are also escalating, with 53% of businesses facing higher expenses and 42% worried about replacing staff. Despite these challenges, short-term business confidence has hit a 12-month high, reflecting the resilience of Australia’s SME community.
“These findings demonstrate that while businesses continue to do it tough, Australia’s SME community is yet again proving its resilience by maintaining high confidence in their short-term outlook”” said Beau Bertoli, chief revenue officer at Prospa.
The partnership with Xero is part of Prospa’s broader strategy to support SMEs, following the acquisition of the Zip Business loan portfolio and a strategic partnership with Zip. This collaboration aims to provide tailored financial solutions to over 30,000 merchants, helping them manage cash flow and other financial needs effectively.
“Our strategic partnership with Zip is a significant step forward in expanding our reach and capacity as Australia’s number one online lender to small business,” Bertoli said.
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