SMEs are recovering well from a difficult year, and signs are pointing to a positive economic environment for FY22. In the next 12 months, nearly two-thirds of SMEs are planning to borrow to drive growth for their businesses. But there are still too many pain points around getting the appropriate funding.
These are some of the many findings in the Banjo SME Compass report 2021. The report reflects a recovering SME sector, many of whom are feeling positive about the year ahead and planning for growth. Yet barriers to growth remain, and a surprising number are lagging in getting their businesses online.
Banjo’s SME Compass report is based on research commissioned by Banjo, to analyse how the engine room of the Australian economy is going. A broad cross-section of SMEs across Australia was surveyed earlier this year by Honeycomb Strategy for Banjo.
- Top 5 barriers to growth: Economic conditions, coupled with insufficient cashflow, recruitment challenges and access to funding serve as the major barriers to growth.
- Top drivers of growth in 2021: Those who invested in growth by implementing new technology, improving products and purchasing new assets or equipment were most likely to record strong performance.
- Leveraging finance to accelerate growth: In the next 12 months, 65% of SMEs intend to leverage funding to drive growth.
- Leadership & building dream team: As growth, mergers and acquisitions are considered, SMEs are turning to business advisors/consultants and accountants for advice.
- Female led business: Both female and male business leaders are highly motivated to drive growth in 2021, yet there are gender differences in the strategic approach.
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