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September 16, 2022

SME Compass report says SMEs in Australia are weathering the Omicron impact

By Zoya Malik

To overcome lending challenges, SMEs rely on the advice of accountants, traditional banks, advisors and brokers. 36 per cent respondents say, their accountant assisted their organisation in evaluating and securing finance

Banjo’s SME Compass Report 2022

Guy Callaghan, CEO Banjo Loans can discuss the 2022-23 outlook for the SME sector highlighting:  Australia’s SMEs increasingly seeking alternative funding options that don’t tie up their personal assets, as they drive growth post-pandemic while navigating ongoing supply chain and recruitment challenges

Digitalisation unlocks opportunities for SMEs. But financing lags, Small businesses have a big appetite for borrowing to fund growth and invest in digital transformation, but they struggle to get their hands on it. 

Supply chain issue – mostly delays in shipping – impacted 44 per cent of businesses over the past 12 months, with businesses now bringing forward stock in response.

Recruitment, Jobs and skills – One in three are struggling with recruitment while more than 60 per cent looking to hire. 

Growth through acquisition is on the cards for 47 per cent of SME businesses. Significantly more SMEs are using acquisitions as a means to add value to customers (45 per cent) than last year (33 per cent).   

Desire to move away from secured loans, with women business owners much less likely to offer up personal assets as security than men

Other key findings included: 

  • Moving into 2022, 55 per cent of SMEs are achieving or exceeding revenue targets, up from 45% the previous year 
  • The greatest barriers to growth were, access to funding and insufficient cashflow, economic climate and recruitment
  • 69 per cent expect revenue to increase over the next 12 months by, improving products, investing in technology and marketing
  • In the next 12 months, 63 per cent of SMEs intend to leverage funding to drive growth. Many will seek bank loans (33 per cent), some will use founders’ cash (20 per cent), others credit (17 per cent).  

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