Strategies to help small business in a tough economy

Jan McCallum

This article was current at the time of publication.

Australian small business owners are not confident about economic prospects this year, with about half expecting their business to grow, according to CPA Australia’s annual Asia-Pacific Small Business Survey for 2024.

Australian SMEs rank 10th out of 11 for small business growth when compared with other businesses across the region. 

This pessimism contrasts with the views of many SME owners in Asia, but Gavan Ord, CPA Australia Business Investment and International Policy Lead, says while challenges such as rising costs are prevalent across the region, there are strategies that keep some businesses growing strongly, and which more Australian businesses could adopt.

The survey finds that high-growth businesses plan to innovate, are investing in technology, are focused on customer satisfaction and actively seek advice.

Use technology to sell and engage online

The survey highlights how small businesses in other markets, particularly Singapore, Malaysia and Vietnam, benefit from adopting technology. 

They make online sales and receive payment through technologies such as PayPal, WeChat Pay and buy now, pay later platforms.

Ord says only 39 per cent of Australian small businesses earn more than 10 per cent of their revenue from online sales, compared with the Asia-Pacific average of 67 per cent, and the evidence is clear that expanding online boosts revenue. 

Australians spent a record A$69 billion online in 2024, up 12 per cent year on year, according to Australia Post’s annual ecommerce report for 2025.

Millennials accounted for 36 per cent of online spending, but all age groups increased their online purchasing. Even baby boomers, who were slow to adopt online shopping, now account for about 15 per cent of it, an increase of more than 17 per cent on 2023.

High-growth SMEs also use social media for business purposes: to engage with customers, talk to potential customers, sell online and monitor competitors.

Many SMEs nominated customer loyalty as the most popular positive influence on their business in 2024, and the fastest-growing businesses saw online as an avenue to build relationships with clients – suggesting businesses that are not engaging online are missing an opportunity.

Use external advisers to grow business

When it comes to seeking advice, the contrast between high-growth and no-growth businesses is stark. Only 6 per cent of high growth small businesses did not seek advice in 2024, compared to 22 per cent of stagnate or declining businesses.

When Australian business owners need advice, they are most likely to contact their accountant or a management consultant.

Liz Shimmin FCPA, CEO of Bluebird Accounting, says when owners want to discuss growing their business, she will look at the technology they are using and whether it will support their growth plans.

When owners are struggling, she encourages them to communicate their needs and concerns with Bluebird.

“It can put a strain on our resources for the short term but once they get through this difficult period and see through to the other side, they see how we can support their business for the long term.”

Shimmin says she can often spot an issue quickly but when presenting options to the client she also discusses why they went into business, their values and what is giving them enjoyment from it.

She says that advisers can bring an objective point of view.

“Speaking to their accountant as an ‘outside person’ is helpful from the start but, most importantly, also through the growth of the business because it helps them make informed decisions moving forward.”

4 ways advisers can help their SME clients grow

1. Have a conversation backed by data

Use the CPA Australia survey data to start conversations about opportunities for the client. Tell them what other businesses are doing and discuss whether they can see opportunities.

2. Start a conversation about what clients are doing to innovate

High-growth businesses across the region plan to introduce a new service, product or process this year. This may be a new payment method, or a product/service that responds to tighter consumer budgets. 

3. Ask clients about their investment in technology

The survey was conducted in November and December 2024 and 76 per cent of high-growth SMEs said their 2024 technology investment had already improved their profitability. Are there new payment options for your clients to consider?

4. Focus on customer satisfaction

How are clients measuring customer satisfaction? Are they using social media to engage with customers and promote their products and services?

The CPA Australia Asia-Pacific Small Business Survey was conducted over November and December 2024. Of the 4236 respondents in 11 countries, 506 Australian SMEs responded to the survey, which is in its 16th year.