A significant 21% of SME owners and operators are undecided about which political party’s policies will best support their business, more than double the 10% sitting on the fence before the 2022 election.  

The dramatic rise in swing voting SMEs is a headline finding from the 22nd edition of ScotPac’s bi-annual SME Growth Index Report, Australia’s most definitive pulse check of SME confidence and growth prospects.

So, what policies or initiatives do SMEs want the next elected Government to implement to give them the best chance of growth and success?

  • 22% of SMEs – equally split between those experiencing business growth and contraction – said easing labour regulations would be top of their wish list.
  • 20% of SMEs are pleading for company tax cuts and lighter touch enforcement from the Australian Tax Office (ATO).
  • 19% of SMEs want no further increase in the Superannuation Guarantee, which is set to rise again on 1 July to 12% of ordinary wages.

ScotPac CEO, Jon Sutton, said it was no surprise that more SMEs are torn over what to do at the ballot box than in 2022.

“Business owners have borne the brunt of inflationary pressures over the past three years, but they feel like they have been left in the political wilderness,” Mr Sutton said.

“SMEs have had to navigate the rising cost of living alongside huge increases in the cost of doing business. Wages, superannuation, insurance, and energy costs have surged at a greater rate than revenue growth for thousands of businesses.

“At the same time, the ATO commenced an aggressive program to recover outstanding tax debts. This combination of factors has depleted SME cash reserves and put enormous pressure on working capital.

“The message from SMEs ahead of the election on May 3 is clear – give us the support and space we need to keep employing and servicing millions of Australians,” Mr Sutton said.

Mr Sutton said while weighing up political promises against their bottom lines was a worthwhile exercise for SMEs, sitting down with their broker to talk about freeing up cash flow was a better use of their time.

“No matter who has the keys to the Lodge, ScotPac’s experts are on call to help brokers and business owners better manage their cash flow and free up funds for growth,” Mr Sutton said.

 

About ScotPac’s 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 22 research was conducted by East & Partners who interviewed 724 SME enterprises with annual revenues of A$1-20 million.

SMEs surveyed have operated continuously for an average of 15.6 years and manage an average of 54 full-time employees.

Sectors represented in the survey included Property & Business Services (14%), Manufacturing (13%), Wholesale (12%), Retail (11%), Personal & Other Services (10%), Construction (10%), Transport & Storage (10%), and other industries including Mining, Agriculture, Media & Telco, Hospitality, Finance & Insurance (non-bank) and Electricity, Gas & Water.

 

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