More than half of Australian small businesses are worried the increasing cost-of-living pressures will stop them from making their summer sales targets, according to fresh data released by Xero this week.
The survey of 302 business owners also revealed that 28% of small businesses are similarly concerned they will miss their targets due to the cost of new supplies and equipment.
According to the accounting software platform, this is particularly concerning as earlier research has shown small businesses in Australia already receive almost 20% less of their annual revenues over January and February.
In those quieter months, this figure is 7%, compared to an average of 8.6% in the other 10 months of the year.
Sheet Society founder and CEO Hayley Worley says while cost-of-living pressures are a worry, her team are doing what it can to manage the business and believe it’s important to focus on what customers want.
“We are very aware of the rising cost of living impacting the retail sector, but we’re yet to see a material impact in customer behaviour,” she told SmartCompany.
“Talking to our customers, we know that they’re more focused than ever on making considered and thoughtful purchasing decisions, focusing on longer-lasting and higher-quality products.
“This aligns with our brand values and product ethos so, despite the macroeconomic concerns, we are forecasting continued growth and will keep investing in introducing more customers to our Sheet Society offering.”
When asked what further support could be provided to small businesses to support summer trading, close to 50% of surveyed business owners (49.7%) requested grants for technology to help manage their business, and 41.4% nominated rebates for customers who spend at small businesses.
Supporting small businesses has a flow-on effect for the local community, with the Xero survey finding that close to 35% of small businesses donate to local community groups or schools.
Xero country manager for Australia Will Buckley urged Australians to direct their spending to small businesses this holiday season.
“While most Aussies know the importance of shopping small over summer, these results — and the stories we hear from small businesses — reinforce just how important it is for us to support our local economies at a critical time of year,” he said in a statement.
“We’re all feeling the effects of the increased cost of living, the summer holiday period is a valuable way to choose to spend time, and money, on small businesses that have had a turbulent few years.
Buckley added that support for small businesses can come in a number of forms, not just financial. Recommending a small business in your network or leaving a positive review can also have a “big impact”, he said.
“Whatever form it takes, our message is to get out there and support the small operators this summer,” he said.
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