A survey report of more than 1,100 Australian business owners and decision-making managers. It makes clear that the pressures on small businesses have intensified. Rising costs, workforce shortages, mounting compliance obligations and mental health strain are stretching owners to their limits. Despite these challenges, small businesses continue to show determination and adaptability. 

The report provides both a warning and a call to action for policymakers. It concludes that to improve the long-term sustainability of the sector, there is an urgent need for a comprehensive policy agenda tailored to the unique needs of small business. 

Key findings

• 44% reported high levels of stress with the number higher amongst businesses with staff numbers between 15 and 24.
• 42% said that regulation is harming their operations with 61% reporting they spend over $20,000 on compliance each year.
• 28% said they have considered closing in the past twelve months and 30% worry their business will close in the next twelve months.
• 35% struggle to recruit or retain staff.
• 82% of respondents are confident in the future of their business, although this reflects survival rather than stability.
• 59% said that technology such as artificial intelligence (AI) is already having a positive impact on their industry.
• 62% expect that positive impact will continue over the next three to four years.