ANZ small businesses lead in confidence & preparedness

Small-to-medium businesses (SMBs) in Australia and New Zealand express the highest confidence in business growth among regions including the US, UK, and Canada, according to a global report by Constant Contact.

The Small Business Now report surveyed over 1,600 small business owners across five countries, focusing on enterprises with fewer than 100 employees and an operational history of eight years or less. The survey indicated that 49 per cent of new SMBs in the ANZ region rated their confidence in achieving business growth this year as high, coupled with 43 per cent expressing some confidence.

Businesses in Australia and New Zealand were recognised for their readiness to handle unforeseen market shifts, with 88 per cent feeling prepared—a figure representing the highest level of preparedness among all regions surveyed. Within this group, 34 per cent described themselves as "very prepared."

Renee Chaplin, Vice President for Asia Pacific at Constant Contact, commented, "The ANZ region is starting to emerge from an inflation-driven hardship, with some economic optimism for the year ahead—particularly following the recent announcement of a long-awaited interest rate cut in Australia and another rate cut in New Zealand. Perhaps going through 2024 has buoyed confidence among SMBs for the year ahead as they've been able to weather the economic storm and survive with lean budgets and resources."

Chaplin added, "SMBs across our region, despite the challenges they have faced in the past few years with inflationary pressures, supply chain issues and interest rate rises—which have worked to curb spending—continue to be among the most confident globally. While economic pressures exist, they are highly adaptable and proactive with a positive long-term outlook on their growth."

The report also highlighted that 94 per cent of respondents from ANZ indicated they would choose to become an entrepreneur again in hindsight, despite economic uncertainties experienced previously. Renee Chaplin stated, "The spirit of the small business owner in Australia and New Zealand is one of strength and resilience—they've been through economic uncertainty many times before, and yet, they still approach the future with confidence."

In the face of economic pressures, 35 per cent of ANZ small businesses identified economic factors such as inflation and interest rates as challenges that may impact them in 2025, matched by an equal percentage highlighting the importance of customer experience. Acquiring new customers was outlined as a major marketing challenge, noted by 48 per cent of respondents.

Embracing technology, 76 per cent of ANZ SMBs plan to incorporate AI technologies in their marketing by 2025, leading all regions. Businesses intend to use AI primarily for content generation, personalising customer experiences, and analysing data for better customer insight.

Renee Chaplin noted, "The latest cohort of ANZ SMBs are leaders when it comes to integrating AI into their marketing workflows, and it's driving measurable improvements. They want to work more efficiently, which enables them to be more creative, focus on customer engagement and spur new growth."

Anne Nalder, Founder and CEO of the Small Business Association of Australia, responded positively to the findings, stating, "This is particularly good news for small businesses who represent 98 per cent of businesses across Australia and who have been doing it tough for several years. It's important for small business owners to take advantage of this momentum by improving their marketing with technology and tools like Constant Contact."

Constant Contact's study demonstrates that while challenges persist, SMBs in Australia and New Zealand are strategically leveraging tools and technologies to build resilience and foster growth in an ever-changing economic landscape. This commitment to innovation and adaptability underscores their optimism and preparedness for future opportunities in the global market.