Despite the uncertainty surrounding the upcoming state election, Queensland’s small and medium enterprises (SMEs) are thriving, topping Australia’s forecasted business growth rankings.
A striking 84% of Queensland SMEs expect revenue growth by March 2025, with projections averaging an 11% increase. In contrast, only 9% anticipate a decline in revenue.
Western Australian SMEs are also optimistic, reflecting strong resource and tourism sectors, but they trail Queensland. On the other hand, just 28% of SMEs in Victoria expect positive revenue growth, highlighting regional disparities.
ScotPac’s latest SME Growth Index Report revealed the growing divide in business outlooks across Australia:
Mining businesses are the most upbeat, projecting a 5% revenue increase. Transport and business services follow at 3.5% and 2.5%, respectively. Meanwhile, construction SMEs remain the most pessimistic, forecasting a 6% decline, with manufacturing not far behind at -2%.
Jon Sutton (pictured above), CEO of ScotPac, attributes Queensland’s growth to population increases and demand for natural resources.
“The remarkable positivity of Queensland SMEs is being fuelled by a growing population and increased demand for the state’s abundant natural resources,” Sutton said.
He also stressed the importance of SMEs for the national economy.
“The net result is that the resilience and agility of Australia’s SMEs is again on full display, with a majority of businesses expecting a bounce in revenue to go hand in glove with anticipated falls in inflation and interest rates next year,” Sutton said.
ScotPac supports more than 8,900 businesses across Australia and New Zealand with a variety of tailored working capital solutions.
Sutton encouraged SMEs to stay proactive: “Whatever their situation, SMEs should talk to their brokers and advisers regularly about the growing range of tailored working capital options available to support their specific needs.”
The SME growth index, Australia’s longest-running SME sentiment report, has been conducted biannually by ScotPac since 2014.
The latest research surveyed 726 SMEs with revenues between $1-20 million. The businesses surveyed have been in operation for an average of 15.4 years, employing about 55 full-time staff each.
The sectors represented include manufacturing, retail, property services, construction, transport, and mining, showcasing a diverse cross-section of industries.
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