Small business owners that have adapted to the changing market are reaping the financial rewards.
According to research by American Express, 65 per cent of small businesses have had to change in some way to meet the shifting demands of the market. From this, businesses with turnover of between $200,000 and $2 million are the most likely to have changed (82 per cent), suggesting that there are financial rewards of those businesses that adapt to market conditions.
The research found that 67 per cent of businesses have changed their product range services offered, while 47 per cent have changed their target audience and 25 per cent have changed their business structure.
Jason Fryer, American Express head of small business services, said: “In a climate of economic uncertainty, small businesses are looking at any external changes that affect the overall health of the business and are responding accordingly. Australian small business owners understand that change is necessary to survive and prosper.”
As well as demonstrating their flexibility, the research shows that Australian small business owners are resilient to the current economic volatility that is sweeping the globe.
While a large proportion of business owners expect to see profit stay the same (41 per cent), over one third (36 per cent) expect profit growth and most business owners (62 per cent) are planning to invest in their business over the next 12 months.
Fryer said that while businesses recognise it’s a difficult time in retail, they will continue to work hard.
“While the majority of small business owners acknowledge that both the global and Australian economies will impact their business in the next 12 months, there is a prevailing sense of ‘getting on with the job’ among operators in this sector,” he said.
“Australian small businesses are resilient and are open to changing with the times. This is extremely positive, given that small businesses make up 96 per cent of Australia’s business community.
“It is encouraging to see that almost half (48 per cent) of small business owners say that negative commentary about how businesses are faring has no impact on their confidence as a business owner.”
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