Queensland SMEs have brushed aside the uncertainty of a State election to surge to the top of the national rankings for projected business growth.
An impressive 84% of SMEs in Queensland are forecasting a jump in revenue to March 2025, by a remarkable average of 11%. Only 9% of the State’s SMEs are predicting a revenue decline.
SMEs in Western Australia, with comparable exposure to Australia’s thriving resources and domestic tourism markets, were the next most enthusiastic about the future. At the other end of the scale, just 28% of Victorian SMEs were banking on short-term revenue growth.
The insights are contained in the latest round of ScotPac’s SME Growth Index Report, Australia’s longest-running sentiment check of SME attitudes towards growth.
Across the nation, the collated headline findings provide further evidence that Australia’s two-speed SME economy is now in overdrive:
- 56% of Australian SMEs are projecting positive revenue growth in the next six months, up from 53% in the previous period.
- A new high of 34% of SMEs predict falling revenue by a record average of minus 13%, a figure that has tripled over the past decade.
- The gap in half-year revenue growth forecasts across the Australian SME market has widened to its largest-ever margin of 45 percentage points, stretching from the most positive SMEs at +17% to the most pessimistic at minus 28%.
In terms of sectors, SMEs involved in the country’s mining sector remain the most positive, with average anticipated revenue growth of 5%, ahead of transport (3.5%), and business services (2.5%). SMEs working in construction again held the most pessimistic expectations of revenue growth (-6%), while those in the manufacturing sector are forecasting a gloomy short-term picture (-2%).
ScotPac CEO, Jon Sutton said the widening chasm in SME revenue projections again proved the Australian economy was made up of many diverse regional markets.
“The remarkable positivity of Queensland SMEs is being fuelled by a growing population and increased demand for the State’s abundant natural resources,” Mr Sutton said.
“That is driving our national economy and propping up other markets that are struggling with rising wages, cost of living pressures and weakened consumer demand.
“The net result is that the resilience and agility of Australia’s SMEs is again on full display, with a majority of businesses expecting a bounce in revenue to go hand in glove with anticipated falls in inflation and interest rates next year,” Mr Sutton said.
ScotPac provides support for more than 8,900 businesses in Australia and New Zealand, spanning every location across a wide variety of traditional and emerging sectors. from simple to complex, large to small, ScotPac has a lending solution.
“Whatever their situation, SMEs should talk to their brokers and advisers regularly about the growing range of tailored working capital options available to support their specific needs,” Mr Sutton said.
SME Forecast Changes in Enterprise Revenue – State by State
About the SME Growth Index
Commencing in March 2014, ScotPac’s twice yearly SME Growth Index is Australia’s longest-running research report on SME sentiment towards revenue growth prospects.
The Round 21 research was conducted by East & Partners who interviewed 726 SME enterprises with annual revenues of A$1-20 million.
SMEs surveyed have operated continuously for 15.4 years and manage an average of 55 full-time employees.
Sectors represented in the survey included Manufacturing (14%), Property & Business Services (14%), Retail (11%), Wholesale (12%), Personal & Other Services (10%), Construction (10%) and other industries including Transport & Storage, Mining, Agriculture, Media, Hospitality, Finance & Insurance (non-bank) and Electricity.
ScotPac is Australia and New Zealand’s largest non-bank SME business lender, providing funding to small, medium and large businesses from start-ups to enterprises exceeding $1 billion in revenues. For more than 35 years ScotPac has helped thousands of business owners succeed, offering fast and flexible funding. From simple to complex, small to large, start-up, growth or turnaround – ScotPac can help with a range of funding including Invoice Finance, Trade Finance, Asset Finance and Business Loans.
For more information contact:
Todd Hayward
Mob: 0412 205 151