The vast majority (85%) of business owners are currently seeking cost-cutting measures, according to the inaugural Small Business Resilience Report from Australian fintech, Zeller, with many opting for tactics such as renegotiating supplier contracts or surcharging EFTPOS fees.
Over one in two transactions processed with Zeller EFTPOS Terminal in May 2023 included a surcharge, up 104% compared to the same month last year.
More than four in 10 (42%) small business owners cite their biggest concern as the increasing cost of supplies and materials, with 80% of small business owners estimated an increase in supply costs of more than 10% in the past year, while one in five reported increases between 20 and 50%. Close to one-third (32%) reported reduced consumer spending as their biggest concern, while 67% of small business owners raised concerns over inflation and rising interest rates negatively impacting consumer spending.
Following Covid-related challenges in hiring employees, 64% of businesses say it is easier to recruit new staff today than it was 12 months ago.
Zeller director of growth, Joshua McNicol said, “The Zeller Small Business Resilience Report reveals the impact a challenging economic environment is having on small business owners — but we’re encouraged to see adversity breeding opportunity.
“Australian small business owners demonstrate a rare breed of determination in adapting and identifying solutions to sustain their businesses through tough times. Through Zeller’s financial solutions, we’re arming business owners with real-time data from their business payments and spending to make smarter decisions to manage their business through the crunch.”
Zeller customer and Bill’s Farm owner, Malcolm McCullough (pictured) commented, “We look at our Zeller Dashboard frequently to gain a real-time snapshot of all of the funds coming into our business from EFTPOS, and going out through expenses and spending. We use this information to forecast and measure our success according to our budget – having this information in one place means we can always keep track of business performance and react to changes.”