Small businesses might be their own best customers with $204 billion flowing between businesses each year. The latest American Express Shop Small research report revealed that these businesses were the most actively networked with 62 per cent reporting that their operations benefited other small peers, spending an average of $9.892 per month.
The strategy seems to be working with 65 per cent of retail businesses expected to still be operating in three years.
Small Australian businesses source goods and services from 4.4 other small suppliers each month, spending an average $8,600 in a typical month or $104,000 annually. Also, 24 per cent spent more than $10,000 and 10 per cent spent more than $20,000 each month.
Further, 24 per cent said the arrival of new business has made it easier to locally source products and services while 32 per cent said it had increased customer footfall and profits.
Other industry findings indicated that small business are keen to collaborate more than they are now, with 26 per cent wanting to do so more than they currently do and 58 per cent would be open to greater collaboration.
This story originally appeared on Appliance Retailer.
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