(1 May 2026 – Australia) Access to funding has become the leading obstacle for Australian small and medium-sized enterprises seeking to meet revenue targets, according to the latest ScotPac SME Growth Index.
Based on direct interviews with 728 SMEs conducted by East & Partners, the research found that 51 percent of SMEs were not confident they would achieve their near-term revenue goals, despite signs of business optimism. The findings point to a gap between expectations and the ability to convert opportunities into income.
The report also found that demand pressures were weighing on business confidence. Some 28 percent of SMEs said cost-of-living pressures were reducing customer demand and affecting their ability to reach revenue targets.
“SMEs are telling us they see opportunity ahead, but they’re far less certain about their ability to convert that into actual revenue. At the centre of that gap is access to capital. Nearly 40% of SMEs now identify access to finance as the single biggest barrier to success” said ScotPac CEO Jon Sutton.
“When you add the potential supply chains and cash flow impacts for SMEs arising from the tensions in the Middle East, it is critical for SMEs to be sitting down with their advisors to ensure they have the right funding structure in place.”
“The Middle East conflict has already flowed through to higher fuel costs and broader input prices, particularly across petrochemical-linked supply chains,” Sutton said. “That is placing additional pressure on margins and cash flow and increasing the need for SMEs to have reliable access to working capital.”
“That’s where access to flexible funding solutions becomes a necessity – not only to support growth, but to relieve pressure on day-to-day operations in uncertain economic times by bridging the gap between costs being incurred and income being received.”