VistaPrint report: Australian SMBs face 2025 challenges

VistaPrint has unveiled its 2025 SMB Report, highlighting the challenges faced by small and medium-sized businesses (SMBs) in Australia, as well as the optimism amidst political, economic, and technological shifts.

The report reveals that over two-thirds (65%) of SMB owners encountered difficulties in the first quarter of 2025, with concerns particularly heightened about inflation (43%) and potential recession (38%). Additionally, 2-in-5 (39%) stated that artificial intelligence (AI) has made it either significantly (9%) or somewhat (30%) harder to stand out in their respective fields.

Conversely, there is a sense of optimism, with half of the SMBs (50%) describing their current feeling as optimistic, positive, excited, or uplifted. This sentiment is further supported by a significant portion (38%) who believe that the upcoming election in Australia will positively impact their business, while 27% expect conditions to remain unchanged.

Technology, and AI in particular, features prominently in their concerns. While almost 2-in-5 (37%) SMBs express optimism towards AI's role, there remains anxiety over potential AI dominance in media channels. Two-thirds (66%) of SMBs see customer engagement and personalisation as essential for differentiating their brands against AI-generated content, which is perceived as potentially overpowering by 62% of businesses.

Social media is also viewed as a challenging landscape, with 44% of SMBs finding it difficult to stand out against widespread AI-generated content. Concerns about AI mainly stem from the lack of human touch (26%), risks to data privacy and security (21%), and content accuracy (21%).

Despite these technological challenges, SMB owners find solace in prioritising authentic storytelling, with 35% highlighting it as a key differentiation strategy. Furthermore, physical marketing materials remain a top investment area along with digital marketing and social media efforts.

Marcus Marchant, CEO of VistaPrint, spoke on the tenacity of SMBs, "Despite the challenges facing small businesses in 2025, it's encouraging to see that optimism remains strong. SMB owners are resourceful, and they recognise that strong branding, personalised engagement – particularly the use of physical marketing materials that leave a lasting impression - and authenticity, are key to standing out in today's evolving landscape. At a time of rapid change, businesses that embrace adaptability and innovation will continue to thrive."

Branding and marketing are paramount for business success, with nearly 38% of SMB owners placing significant emphasis (extreme at 9% and high at 29%) on these aspects. According to SMBs, delivering excellent customer service, transparency in practices, and consistently high-quality products and services are the most effective strategies for building brand trust, whereas partnering with influencers ranks lowest.