Cashflow and regulation remain top concerns as business owners continue to adapt
Small and medium-sized enterprises (SMEs) in Australia are taking decisive steps to address the challenges affecting their operations, according to new data from NAB’s SME Business Insights.
The findings indicate that cashflow (44%), profitability (38%), and government policies and regulations (37%) are the leading concerns for SME owners, each showing notable increases compared to the previous year.
Rather than scaling back, many SMEs are implementing cost-saving measures and renegotiating supplier agreements. Half of the respondents reported these actions, while others are increasing their marketing activities (37%), investing in workforce development (29%), and revising pricing models (29%) to maintain competitiveness.
Andrew Auerbach (pictured top), group executive, business & private banking at NAB, noted that SME clients are continuing to face uncertainty with resourcefulness and renewed optimism. “It’s been very encouraging to see business confidence climb steadily over the last three months – now above its long-run average – despite rising global uncertainty,” he said. “That’s a strong, positive sign for Australian SMEs and the broader economy.
“Whether it’s smarter cashflow management or deeper customer engagement, SMEs are showing us what leadership looks like in action. As Australia’s largest business bank, we’re seeing firsthand how our customers are leaning into opportunity and adapting with agility, and optimism to meet a range of different challenges.”
This outlook will be a key focus at the inaugural NAB Business Summit in Melbourne today, where over 450 entrepreneurs and industry figures will gather to discuss issues facing SMEs, share insights, and highlight the importance of customer focus.
Among the speakers are Nick Palumbo, founder of Gelato Messina; Chris Lucas, founder and chief executive of The Lucas Group; and Laura Henshaw, co-founder and chief executive of Kic. They will discuss their business journeys and the factors behind building successful enterprises.
The 2025 NAB Business Summit, held at The Glasshouse in Melbourne, will address topics such as evolving social dynamics, the impact and opportunities of artificial intelligence, and ongoing global economic uncertainty.
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