SMEs Confident in Generating Positive Revenue - ScotPac SME Growth Index
(10 October 2022 - Australia) Over half of Australia’s small to medium enterprises (SMEs) forecast positive revenue growth in October 2022 according to ScotPac’s latest SME Growth Index.
A six percent increase in confidence for positive revenue growth with small to medium enterprises (SMEs) was captured from 700 direct interviews conducted by East & Partners for ScotPac's biannual SME Growth Index.
The long running research collects feedback covering a range of topics from revenue forecasts, profit expectations, cash flow management practices and growth financing intentions.
The latest index found over half of SMEs expect revenue to increase. The confidence boost comes off the back of easing COVID travel restrictions commencing in H1 2022.
Over 2022, the average projected growth rate was five to six percent, an increase of 37 percent year-on-year.
One in four SMEs project revenues to decline by an average of seven percent in October. This marked the worst growth forecast in the history of the Index.
Revenue growth forecasts from the 700 firms interviewed were considerably varied, ranging from an increase of ten percent to a decline of 17 percent, indicating continued uncertainty in pockets of the economy.
These mixed forecasts are understandable due to the uncertain economic environment, according to ScotPac CEO 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" commenter Mr Sutton.
"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" Mr Sutton added
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