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Property businesses emerged as among the most positive in a new study of small- to medium-sized enterprises.
Despite challenging economic conditions, six out of 10 small to medium-sized enterprises (SMEs) plan to invest for growth over the next 12 months, according to the report from NAB.
The bank surveyed over 700 Australian small to medium-sized enterprise business owners and revealed that two out of three (67 per cent) SMEs in the property sector intend to invest for growth over the next year, tying for second with the business services industry.
These industries ultimately fall short of the top placed sector of financial and insurance SMEs, in which three in four businesses reported plans to invest for growth over the next year (76 per cent).
Intentions to invest registered the lowest in the retail (46 per cent) and construction sectors (47 per cent), with NAB explaining that these industries have faced “greater challenges” over the past 12 months.
NAB executive for small business, Krissie Jones, said the research “highlighted Australia’s dual-speed economy, where many businesses continue to make considered investments to grow, while others look to manage through higher costs and constrained consumer spending”.
“Many remain eager to explore growth opportunities that are right for them, while being more thoughtful around where and how they spend their money in the near term,” Jones stated.
On a regional scale, NAB reported that Queensland, Victoria and Tasmania are most likely to invest for growth next year, with “people, new products and technology” being identified as the top investment priorities for SMEs over the next 12 months.
Notably, SMEs in property services lead the way for investment in new technologies and systems (48 per cent) but also register as the sector with the lowest interest in investing in new products or services (10 per cent).
Speaking on these findings, Jones relayed that even with “higher interest rates and stubborn inflation, what we’re seeing is SMEs making smart investments in goods that help reduce their operating costs”, a trend she described as being “important in the current environment”.
“What has struck me as I’ve been travelling around Australia is the resilience of small business owners – they are adapting, with many looking to invest and preparing for growth,” she concluded.
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