The latest MYOB Bi-Annual Business Monitor released today paints a picture of stability for Australia’s small and mid-sized enterprises (SMEs) in the face of economic pressure. While 45% of respondents believe the economy will decline in the year ahead, 64% describe their financial position as ‘good’ or ‘excellent’, while nearly half (48%) say their revenue has stayed the same for the last 12 months.
The twice-yearly MYOB Business Monitor, based on a survey of more than 1000 SME owners and operators, found global trade dynamics are a key factor in the way SMEs view the financial health of their business. Nearly half (41%) of SMEs believe US trade tariffs will destabilise the global economy. A further 35% expect rising tariffs to lead to increased business costs and higher inflation, as international pressures flow through to local operations.
Since the announcement of US trading tariffs in April 2025, 17% of respondents have experienced impacts to date. Nineteen per cent of SMEs indicated they export their products and services, while 68% said they’re yet to experience any effects from the imposed US tariffs.
MYOB CEO Paul Robson says the data shows the sector is strategically adapting to these headwinds while remaining focused on continuity and growth.
“The findings highlight resiliency, innovation and stability as SMEs navigate uncertain global conditions. While global policy decisions may feel distant, Australian SMEs are alive to potential local impacts and are pivoting their way around them,” said Paul.
“The key consideration for impacted SMEs is the cumulative effect of both tariffs and interest rates on the cost of doing business. Supply chain disruption is another concern for this community, given the diverse industry portfolio this sector covers. Seventeen per cent plan to shift where they source products or services, while one in 10 expect an increase in customer demand.”
In terms of recent performance, 16% of SMEs achieved revenue growth over the past year. For the responding 34% that experienced a revenue decline, the top contributing factors were the current economic climate (33%), decreased consumer demand (18%), and interest rate effects (10%).
Among those who saw revenue rise, the most cited reasons were increased consumer demand (28%), followed by price increases (15%), stronger customer relationships (12%) and improved offerings (12%).
Looking ahead, nearly a quarter (24%) of SMEs expect their revenue to grow over the next 12 months. Optimism is strongest among younger business owners, with 45% of Gen Z and 36% of Gen Y predicting an upturn.
There are signs some pressures are beginning to ease. Compared to the January 2025 edition of the MYOB Bi-Annual Business Monitor, SMEs now say operational costs are causing less pressure. The cost of utilities, still the most significant concern, is causing 28% of respondents a lot to extreme pressure – down from 35% earlier in the year. Similarly, concern over fuel prices has dropped from 33% to 22%, and pressure on profitability has decreased from 27% to 23%.
In addition, the MYOB Bi-Annual Business Monitor shows business investment starting to increase, with 16% of respondents planning to diversify their product or service range and 11% expecting to invest in IT.
Paul said that a signature of SMEs is their ability to be agile in the face of change, with hard times often presenting new opportunities for innovation and expansion.
“While challenges remain, SMEs are driving strategies to buffer external shocks. They’re not waiting for conditions to improve; they’re operating in our current reality to achieve stability and, in some cases, growth. Our data shows product diversification and digitisation are just some of the ways SMEs are reinforcing themselves against global headwinds,” said Paul.
While 35% of businesses report lower profitability than a year ago, 41% say their profitability is unchanged – underscoring broad stability, if not growth. To help with that growth, interest rate relief remains a key desire for many. Nearly a third (29%) of respondents say a cut of more than 1% is needed to bring meaningful economic benefit.
“SMEs are sensitive to monetary policy and consistent, clear settings are important for this sector,” said Paul. “While economic challenges remain, SMEs continue to push forward. The results in our latest report are a powerful testament to their tenacity and their essential role in our economic future.”
The findings reinforce the importance of targeted support for SMEs – a sector that continues to underpin the Australian economy through adaptability, innovation and enduring strength.
For more information and to read the full report, please visit myob.com/au/media.
ENDS
For further comment or other information please contact
Collette Betts
Corporate Affairs Manager
E: collette.betts@myob.com
About MYOB
MYOB provides leading business management solutions with a core purpose of helping more businesses in Australia and New Zealand start, survive and succeed. MYOB delivers end-to-end business, financial and accounting products direct to businesses employing between 0 and 1000 employees, alongside a network of accountants, bookkeepers and consultants. For more information visit myob.com or follow MYOB on LinkedIn.
About MYOB Business Monitor
The MYOB Business Monitor researches business performance and attitudes regarding areas such as profitability, cash flow, pipeline work, technology usage and the government. This report presents the summary findings for key indicators from the MYOB Business Monitor comprising a national sample of 1087 business owners, managers and directors (operators), conducted from April 10, 2025 – 14 May, 2025. The businesses participating in the online survey were both non-employing and employing businesses. All data has been weighted by industry type, location and number of employees, which are in line with the Australian Bureau of Statistics (ABS - Counts of Australian businesses, including entries & exits - 8165.0).