Xero, the small business accounting platform, hosted key government and business leaders in its Sydney office to discuss the benefits of accelerating eInvoicing adoption.

The event, hosted as part of NSW Small Business Month, was focused on sharing the lessons from early adopters of eInvoicing ‘send’ capability, and discussing how to accelerate the release of eInvoicing’s $28 billion productivity opportunity as estimated by the Australian Taxation Office.

Xero is supporting  small businesses to adopt eInvoicing – however, in order for it to truly take off, government and big business need to get on board and show leadership by sending eInvoices. 

eInvoicing is a key step in the digital transformation of Australia’s small businesses; it helps make the entire invoicing process not only faster, but also safer, more efficient and more secure (something that is especially pertinent in the current environment). 

Speakers for the event included Minister Victor Dominello, Australian Small Business and Family Enterprise Ombudsman Bruce Billson  and Joseph Lyons, Managing Director, APAC, Xero.

Joseph Lyons, Managing Director, APAC, Xero, said: 

Hosting an event for NSW Small Business Month was a privilege – it created an important opportunity to bring key business and government leaders together to have valuable conversations about the clear opportunity to drive Australia’s economy forward.

We know that eInvoicing goes a long way in boosting productivity and helping small business’ bottom line. But it doesn’t just increase efficiency and facilitate faster payment times; it’s also safer and more secure. 

By investing in digital capabilities such as eInvoicing, big business and governments play a critical part in driving the adoption of technology forward for small businesses, which will ultimately help Australia’s small business economy thrive. 

The Hon. Victor Dominello MP – Minister for Customer Service and Digital Government, Small Business and Fair Trading, NSW Government said:

At a time of heightened cyber security awareness and growing cost of doing business pressures, it is a perfect time to be talking about increasing the adoption of eInvoicing as part of Small Business Month.

Government and business should work together to explore what we can do to accelerate adoption of eInvoicing, and I am confident today’s gathering of key eInvoicing stakeholders will do just that. 

FedEx Corporation has released the findings from its 2022 report that analyzed the company’s impact on the global economy with key regional and market-specific analyses from around the world at the conclusion of its 2022 fiscal year (FY 2022). The report, produced in consultation with Dun & Bradstreet (NYSE: DNB), a leading global provider of business decisioning data and analytics, for the first time analyzed the impact FedEx has on economies around the world.

The report found that FedEx played an integral role in helping businesses recover from the pandemic while overcoming strained supply chains and economic challenges. With nearly 550,000 employees worldwide, FedEx moved an average of 16 million shipments each day through its 5,000 facilities in FY 2022. The company’s network optimization and investments improved efficiency and capacity for FedEx customers.

“All around the world, FedEx helped individuals, businesses, and communities emerge from the pandemic by moving goods and providing services that connect us and power the global economy,” said Raj Subramaniam, President and CEO, FedEx Corporation. “The report illustrates the ongoing and important work we do every day, including supporting small- and medium-sized businesses which are the backbone of our local communities. We call this, the ‘FedEx Effect.’”

Measuring the FedEx Effect:

The shipping and logistics company plays a role in fueling innovation, creating, and supporting local jobs, as well as helping lift individuals and their communities regionally and in major markets around the world. For example:

• FedEx worked with 360,000 suppliers globally who employed more than 16.5 million individuals. These businesses, many of which are small businesses, created significant economic activity within their local or regional markets and had a combined annual revenue of $700 billion.

• FedEx global economic activity supported 193,000 additional jobs beyond the FedEx worldwide employee base in FY 2022, which is 20,000 more jobs than FedEx indirectly supported in FY 2021.
• Small businesses made up 88% of the FedEx supply chain, and more than half of the FedEx supply chain spend in each region went to small businesses—which collectively supported roughly 810,000 small business jobs around the world.
• In FY 2022, FedEx invested $6.8 billion—a 15% increase over FY 2021—in facility improvements, network optimization and infrastructure improvements, which correlated to direct economic growth in the respective markets.

Impact Across Asia Pacific, Middle East and Africa (AMEA)

The company’s presence in Asia, the Pacific, the Middle East, Indian Subcontinent and Africa serves more than 100 countries and territories in a highly inter-connected region that is playing an increasingly prominent role as a driver of global trade. To support the region’s economic recovery from the COVID-19 pandemic, FedEx made strategic investments, as outlined in the report, that contributed to a 13% increase in employment, supporting more than 58,000 jobs beyond its 37,000 team members in the AMEA region.

“Through our continuous commitment to the region we have helped support hundreds of thousands of businesses and communities still recovering from the pandemic,” said Kawal Preet, Regional President, Asia Pacific, Middle East, and Africa (AMEA), FedEx Express. “Our investments in our hubs in Guangzhou, Osaka and Dubai enable us to meet demand and optimize routes for our customers as supply chains fluctuate. Our new and improved facilities like the Clark gateway facility in the Philippines, as well as the consolidation at our Delhi hub create greater access to emerging markets and increase efficiency.”

Across the region the economic footprint continues to grow. The company recently established a direct commercial presence in Cambodia as well as in Saudi Arabia, Egypt and Jordan. FedEx also announced the plan to expand its gateway facility in Guangzhou, China by establishing a new South China Operations Center.

Moving to the Australian region

In Australia, FedEx began operations in 1989, and now employs over 5,600 team members across an extensive national domestic network with the ability to deliver to every address in the country. The company has more than 2,400 vehicles nationally and operates multiple flights in and out of Australia. FedEx continues to extend its footprint by creating access to more international markets and investing in new and upgraded facilities that will further enhance its delivery times for its international and domestic customers.

In October 2021, FedEx Express Australia announced additional weekly flights from Singapore to Sydney, Australia, doubling flight operations between the two countries. Australia is currently Singapore’s fourth-largest trading partner for exports, while Singapore is Australia’s largest two-way trading partner. FedEx Express Australia shipment volume in Singapore increased 22 per cent during FY 2022.

“We are continuously strengthening our operations in Australia to ensure we offer our customers the most robust solutions possible to support their needs,” said Peter Langley, Vice President of FedEx Express Australasia. “Throughout the pandemic, SMEs have been the most severely affected and FedEx has been supporting small and medium businesses as well as e-retailers in tapping domestic opportunities or accessing more international markets. This includes providing solutions that offer a personalised experience that will help businesses exceed customer expectations.”

              FedEx is committed to diversity, equity, and inclusion in the workplace, an important contributor to recent accolades including ranking on the World’s Best Workplaces list compiled by Fortune magazine in 21^st place and being named as one of the best places to work in markets in AMEA including Indonesia, Philippines and Thailand. In October 2021, Kawal Preet signed the CEO statement of support for the Women’s Empowerment Principles established by the United Nations Entity for Gender Equality and the Empowerment of Women and the United Nations Global Compact. 

Giving Impact

The report shows that in FY 2022, FedEx donated over $86 million globally to charities and local non-profits in the communities where its team members live and work. In the AMEA region this includes environmental programs, childhood education, entrepreneurship, and healthcare initiatives to help improve lives. The company also served as a critical conduit for food aid deliveries to residents in Shanghai, China during COVID-19 lockdowns in the city and delivered vaccines and critical medical supplies to India, Korea, and Vietnam among others.

              FedEx is committed to connecting the world responsibly, through its stated goal of carbon-neutral operations by 2040 and pursuit of investments in renewable energy to power its operations.

Read the full FedEx Economic Impact Report and explore the FedEx Effect in communities and regions around the world.

Employees screening prospective hires to find out if they’re the right fit for your business is commonplace, but employee suitability shouldn’t stop at just the initial hiring process.

According to CEO at ‘know your people’ (pre-employment screening, verification and workforce compliance) technology company Kinatico, Michael Ivanchenko, by not regularly screening your employees, you could be exposing your business to unnecessary risk.

“Businesses that do not conduct regular ongoing employee screening can miss the warning signs that an employee is no longer competent to remain in their role or is unsuitable for an upcoming promotion,” said Mr Ivanchenko.

“Background checks are a hiring no-brainer. You want to ensure candidates are who they say they are. But after you’ve hired someone – you should be re-screening them on a regular basis.”

“While someone’s education credentials and previous employment history will remain constant throughout their career, it’s possible that other things may shift.”

“I would advise all businesses to really give serious thought to ‘who’ is working for you long-term.”

Mr Ivanchenko said having people in your business who have lied about their background, or their qualifications is serious, potentially criminal, and can have huge ramifications for the businesses who employed the individual.

“An employee’s criminal, driving and financial records can change over time, and in many instances, this won’t impact the ability of the individual to carry out their role,” said Mr Ivanchenko.

“But what would happen if a financial advisor at your business went bankrupt and didn’t disclose this information?”

“While we usually focus on the price paid by the individual at fault, a business can still suffer significant brand damage, even if they’re found not to have breached any laws and did the right thing by reporting a crime as soon as they became aware of it.”

Mr Ivanchenko said if your business failed to carry out ongoing background screening, you could be putting your clients (and possibly their investment) in jeopardy, with you being potentially liable for any fallout.

Employee Screening obligations for a business included:

• Providing a safe working environment: It is an employer’s duty to protect the interests of clients, stakeholders and staff. Employers are responsible for maintaining a safe working environment, including ensuring all employees are appropriately screened on a regular basis.One-off checks before an individual is hired will not suffice long term, as any changes to their criminal or financial history, for example, may not be uncovered until it is too late. Government regulations within specific industries are also important. If found to be non-compliant – such as not conducting the appropriate level of screening, or not re-screening employees regularly – then hefty fines, reputational damage or prosecution could result.
• Promotions should always involve re-screening: As well as a background screening policy that covers re-screening, in-house promotion policies are important.Often, the new responsibilities that come with a promotion won’t encompass a specific check that will prevent the individual from getting the position. But it may uncover a problem in the original hiring process, such as a criminal conviction that impacts their ability to do their job safely, or a bankruptcy that affects the trading license of a business.Another example isan aged-care worker applying for a more senior role – this new position may require them to drive a business car to collect and return residents to the facility. When joining the business initially, there was no need for a driver’s licence check, since the employee had no driving duties. Or they did have that check, but in the years since they have had their licence suspended.Not completing a re-screening check like this can be devastating for both the business, and the safety of the facility’s residents.
• Different checks for different industries and duties: Businesses will need to work with their hiring managers and HR team to determine the order – and frequency – of ongoing checks. (Common background checks are at the end of the release.)

Mr Ivanchenko said the best way businesses could feel more assured they truly “know their people” was to sign up to an online monitoring platform, like Cited (see below).

Common Employee Screening background checks:

• Driving Licence and Traffic Checks
  For driving-based roles where companies need to ensure employees are still licensed and have a solid driving history.
• Working with Children Check
  In Australia and New Zealand, it’s mandatory for people working in the paid and volunteer children’s workforce to complete a Working with Children Check every three years (or Children’s Worker Safety Check as it’s known in New Zealand). It is illegal to engage anyone in child-related work if they don’t have a valid check.
• VEVO Visa and Work Entitlement Check
  Work entitlements may change over the course of an individual’s employment, so a quick check can provide verification. Likewise, an employee’s visa status will probably change over the course of their employment – failing to comply with TSS Visa conditions could see your business face significant fines.
• National Police Checks

Whether it’s a National Police Check, an AFP Check or a Criminal Record Check (NZ), regular employee screening will give you the relevant insight you need to ensure the appropriate people are in their roles.

• Credit, Financial and Business History Checks
  Particularly for customer-facing companies that manage clients’ finances, bankruptcy and anti-money laundering (AML) checks can be a valuable tool in maintaining your brand’s reputation, and ensuring you continue to comply with industry and government regulations.

The rising prevalence of video-based ecommerce platforms has equipped retailers with a new tool to enhance their close relationship with consumers, and it’s letting them cut all the middlemen out, for good. 

This seismic shift towards video has given rise to a new era of independence amongst direct-to-consumer retailers, a cohort that cut its teeth competing against big business in the arena of online shopping. Having to go toe-to-toe against dominant brands in huge markets, D2C brands inherently understand the value of independence and how it relates to their capacity to react with agility and creativity. 

For the first time these brands are being given the opportunity to really own the customer experience and reduce their dependence on social media giants through shoppable and interactive video which allows them to offer a vastly improved customer experience and build on their social capital. 

Social commerce 2.0

The use of social media platforms like Instagram and TikTok to market and sell products and services within the app has had a transformative effect on customer buying habits. Data shows that Gen Z in particular use social media to seek inspiration, research products and connect with their favourite brands. As a one-stop shop, social commerce platforms bring together all elements of online shopping in a single convenient package complete with customer support and easy check out. 

Shopping has never been so streamlined, and it’s for this reason that the value of social commerce has skyrocketed. By 2026 it’s estimated that the value of this seamless form of shopping will reach $2.9 trillion in the US. Live shopping is another form of video and social commerce that has already gained massive traction in Asia and Latin America. Worth an estimated $600 billion in China alone, the format is being rolled out across rival platforms including Amazon Live, TikTok Shop/Live, Instagram Live and Twitch. 

For the average social media user who spends 15% of their waking life on social platforms, the melding of entertainment and socialising with online shopping represents convenience, fun and a more authentic brand experience. 

The emergence of independent shoppable video platforms means that D2C brands that have previously exclusively relied on social media to drive brand awareness, strengthen customer connections, and generate revenue are able to do so outside of social media monopolies by turning their websites into their own self-contained platforms. These retailers are empowered to create their brand narratives, build communities, and access full analytic data without being beholden to unknown algorithms, restrictive guidelines, or sudden loss of access to social media accounts.

Leveraging independent shoppable video platforms to fast-track growth

As the internet is a great leveller for D2C brands, the development of integrated shoppable video for ecommerce retailers has given them advantages that have until recently only been accessible to social media heavyweights. Brands are able to leverage in-depth data to hone product offerings, personalise the customer shopping experience and build on community engagement.

D2C retailers can also capitalise on their nimbleness to create compelling brand narratives that will add credibility and meaning to their campaigns. As a medium, video is a powerful vehicle for immersive storytelling – more pertinently, video also offers consumers product information that is otherwise unable to be conveyed via text and images alone. From the look of a product to its colour and proportions, shoppable video reveals far richer details than the standard ecommerce format. 

Retailers are now able to tap into the power of shoppable video to replicate its benefits on their brand’s own page instead of only selling through social media, and they can do it armed with targeted insights gleaned from the platform. Businesses can see how customers react to certain products, what content they engage with the most, which areas or products underperform, which do well and more. 

These insights are critical to personalising the customer experience and assists with product development and retargeting of customers. For D2C businesses accustomed to overseeing all aspects of the business from production to distribution, independent shoppable video platforms add an extra layer of control. No longer do social media middlemen have exclusive access to valuable customer information, brands can solely focus on their own D2C strategy to increase loyalty and sales. 

Quick tips for making the most of video based ecommerce

Brands looking to maximise their shoppable video ROI should keep the following in mind:

• There’s no need to spend a lot to make a great video, keep it simple and stick to these guidelines and you’ll be well on your way. Don’t forget, audiences favour unfiltered and authentic content over slick productions. Taking a low key approach works in favour of your business. 
• Try embedding a Founder story to greet customers with. This should quickly introduce them to your brand and its products and direct them to where they need to go. Consider your Founder story and how it connects to your overall brand story. Work through it if necessary to identify your business’ values, mission, and goals.
• Keep it simple and authentic. Utilise influencers and user-generated content. Reviews are especially essential to credibility, so make the process as hassle-free as possible for your customers.
• For a start, you can use videos you already posted on social without creating new ones and make them shoppable. Make sure that you choose the most engaging videos. You already know what works well on your socials so use the information you already have.
• Make sure that every piece of content represents this brand narrative. Consistency is key to reinforcing brand messages. 

By reclaiming their right to dictate their own direction through use of independent shoppable video platforms, D2C retailers are making it clear to the big names in social media that their era is officially over and the playing field is now even for businesses of all sizes

By Dov Kauffman, Co-Founder and CEO of Tolstoy

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A free training program from Navitas Skilled Futures is helping improve communication skills, confidence and retention of vital company staff resources in workplaces across the hospitality, tourism and healthcare sectors.  

According to the Australian Bureau of Statistics, around three million working age Australians have low literacy and/or numeracy skills and are at high risk of poor employment outcomes. Foundation Skills for Your Future is a free government-funded program aimed at combating this issue by encouraging employers, managers and HR teams across Australia to upskill their staff by improving their language, literacy, numeracy and digital skills.  

Industry-specific workplace training is developed in conjunction with employers to deliver bespoke programs that meet individual learning and development needs. The average length of training program is three months with an average class size of 15 people.   

Navitas Skilled Futures Executive General Manager, Michael Cox, said: “Once a business approaches us for training, our team works closely with managers to identify gaps in their employees’ skill set. This allows us to design and deliver a tailored program to improve workforce capability and productivity. The outcome for employees is greater confidence and job satisfaction, which in turn is a competitive advantage for businesses.”  

As a young refugee working on an Australian construction site, Hedayat Osyan learned first-hand how having limited communication and digital skills could be a fast path to exploitation and hopelessness. Many years later, he didn’t hesitate to engage Navitas Skilled Futures to upskill workers at his Sydney social enterprise, CommUnity Construction. 

“After this program [my workers] became more engaged; they wanted to speak with people, to help the business and have more involvement. It led to a happier and safer workplace with employees who felt more connected, could communicate better with each other, and who had a better understanding of their role and business outcomes,” said Hedayat.  

Since participating in the program, CommUnity Construction has raised its profile, seen an increase in referrals and grown its business. Improved employee skills have enabled the business to expand its service offerings and reach. Some staff members have even started their own business. For more on Hedayat’s story, READ or WATCH.  

Employers are encouraged to contribute to the program by giving employees time during work hours to complete the training. Programs can also be delivered onsite or online and are accredited or non-accredited up to the Certificate II level. 

To be eligible, participants must be an Australian citizen or permanent resident aged 15 years and over, have left secondary school education, be employed (or recently unemployed within the past nine months) and not registered with an Australian Government employment service provider. 

The festive holiday shopping season is already in full swing and FedEx Express (FedEx), and one of the world’s largest transportation companies, is going all-in to help shoppers and shippers spread seasonal joy at this special time of the year.

   E-commerce continues to grow its share of retail spending. According to FedEx research, 80% of consumers in the Asia Pacific, Middle East and Africa (AMEA) region have increased their e-commerce spending in the last three years and over 70% think it will continue to grow in the next three years.¹ This year, e-commerce events like Black Friday and Cyber Monday which signal the final countdown to Christmas, continue to make a difference to consumers. In fact, many would like even more online shopping festivals.² To make the most of the season, e-tailers are looking to boost their effectiveness and are innovating their services through personalized customer offers such as online “shoppertainment” and new payment options to attract visitors and clicks. Furthermore, 87% of e-merchants seek additional support from logistics providers to support these seasonal events.³

       “In AMEA, the gifting season continues in the months leading up to Christmas through to Lunar New Year. Along with consumers’ intent to do more online shopping during the festive season,² e-tailers, especially small and medium-sized businesses, are gearing up their efforts to deliver the best customer experience possible to stay competitive,” said Kawal Preet, president of the Asia Pacific, Middle East and Africa (AMEA) at FedEx Express. “As delivery is a crucial part of customer experience, we’re committed to providing businesses and shoppers with a wide range of easy-to-use solutions to make holiday shipping as easy as possible.” 

FedEx has flexible delivery options to give both businesses and consumers confidence through this busy season. These include:

• Competitive Delivery Speed and Great value: FedEx® International Connect Plus (FICP) is an international e-commerce shipping service that combines competitive delivery speed with attractive prices ensuring most shipments will be delivered within 1 to 3 business days* within AMEA**. For those super urgent last minute shipments FedEx International Priority® Express is available providing delivery by 10.30am or noon for select markets in Asia^‡, United States, Canada and Europe.
• Convenience and control: FedEx® Delivery Manager International gives consumers options on where and when their residential shipments are delivered. The service has recently been enhanced to include delivery notifications and personalized options now available on WhatsApp^†. The date and location of delivery can even be changed once the shipment is in progress so you can manage your deliveries when you are on the go.

• Peace of mind: All FedEx shipments are trackable as they pass through our network. But the ultimate assurance comes with Picture Proof of Delivery which provides customers with peace of mind when they receive a photo confirmation that their shipments have arrived to their door^††.  

• Seamless Integration: FedEx is integrating its services with e-commerce marketplaces to generate FedEx shipping labels and access features like Express Shipping Services and International Shipping Documentation Service, without leaving the platforms. Easy-to-use, friction-free services like these are important timesavers for e-commerce merchants during the holidays when order books are filling up. They also make a difference to end consumers in helping to ensure their expectations are met.

• Becoming more sustainable: FedEx is following a multi-track path to reduce carbon emissions in the delivery cycle with a goal of achieving carbon neutral global operations by 2040. This includes investing in electric vehicles for last mile deliveries, and enhancing digital solutions. Additionally, FedEx is implementing solutions like reusable packaging to help reduce waste in the shipping process.

Whether you are managing your business or managing your kids‘ wish list, FedEx is standing by to help everyone this holiday season so you can shop and ship with confidence and spend more time with the people that matter.

Over a third of Australian consumers (38%, the highest globally) agreed a great customer experience critical to retaining their loyalty during the cost of living crisis. That’s according to the latest data from Shopify, which also found social commerce emerging as a leading channel to deliver this experience, as almost three quarters (73%) of Aussies will continue or increase shopping via social media, while nearly a third of Australian businesses (31%) believe that sales through social media will form the largest part of their business by the end of the decade, sitting above global average.

Ahead of the 2022 Black Friday Cyber Monday (BFCM) weekend — an event that last year saw more than 47 million shoppers buying from brands powered by Shopify in 2021 — Shopify surveyed 4,000 consumers and 500 businesses across Australia and New Zealand (ANZ) to learn how the changing economic environment has influenced consumer spending preferences this year, and what retailers are aiming for this holiday season.

“With countless sales channels from social, to bricks and mortar and online, retailers need to take a varied approach if they want to connect to their consumers,” said Shaun Broughton, Managing Director, APAC and Japan, Shopify. “One thing is clear – shoppers and brands alike still need to make important, meaningful connections over the holiday spending spree and beyond. For retailers to thrive, building trust and encouraging creativity are the keys to unlock consumers everywhere they shop.”

“Building and maintaining a strong relationship with our customers is a huge priority for us at July. We devote a significant amount of time and resources investing in our overall customer experience — both online and in store — and continue this even well beyond the purchase date. Our customers have become our best marketers,” said Zhoe Low, General Manager at Australian luggage brand July. “Social media is a huge part of this, as we know our customers are avid users of Facebook and Instagram, and they conduct extensive research prior to their trips. They are educated, considered, thoughtful, and willing to do the research to ensure their luggage purchases are appropriate for their needs and on trend – so we have to ensure we meet them there.”

The findings reveal:

Aussie loyalty is up for grabs if cost-savings can be made, but customer experience critical

• Australian consumers’ loyalty is more tied to customer experience than any other market surveyed, with 38% of consumers saying a great customer experience is essential to retaining their loyalty during the cost of living crisis
• It’s no surprise then, that SMBs across Australia intend to focus their energies for the year ahead on iImproving customer experience (39%) and building their customer base / relationships (41%) 
• Australian retailers (91%) are also the biggest believers that building a community around your brand is crucial to maintaining customer loyalty

Consumers are open to new experiences and more willing to shop via social channels

• Nearly a third of Australian businesses (31%) believe that sales through social media will form the largest part of their business by the end of the decade, above the global average
• Consumers are open to change and will shop across all surfaces:
  • 90% consumers say they will continue to make purchases via an online store
  • 73% will continue to shop on social media or dial up purchases
• Businesses are open minded about ways to connect and deliver value to consumers during this time with 83% saying they’re exploring creative ways to help consumers (e.g. through improving customer experience)
  

Embracing new ways to sell – but high-street remains on hiatus

• Three quarters (79%) of businesses in the region say that selling direct-to-consumer via an online store/mobile app is either the same or more important for business compared to a year ago.
• Despite 89% consumers purchasing the same or more in store as a year ago, Australian businesses were by far the most likely of all polled (just 19% versus 30% globally) to say that physical stores have become less important to their bottom line over the last 12 months.
• Around two fifths (41%) of businesses in ANZ said reaching consumers organically, via word of mouth or social media, was more important than ever, while two fifths (39%) of shoppers said that shopping online was one of the top ways they discovered new products to buy

Having a direct relationship with consumers is more important than ever

• 92% of Australian merchants agree that having a direct relationship with consumers has never been more important
• Knowing that consumers are open to change, and that D2C is key, businesses have a window of opportunity to connect with consumers and secure their attention. In fact, almost two thirds (64%) of consumers in Australia said that how brands communicate with them about BFCM offers is important in determining if they will buy from them.
• Knowing that consumers want to spend but are researching more, brands should engage prospective shoppers ahead of time so they don’t miss out.

About the study

Online survey conducted by Sapio Research, on behalf of Shopify, among 24,009 consumers and 9,012 businesses (under 1,000 employees) across the UK, France, Germany, Spain, Italy, Netherlands, Sweden, Australia, New Zealand, Japan, US and Canada. The survey took place between September and October 2022

Much of the focus of this year’s unprecedented levels of inflation has been on the impact to households. However, new research reveals that 72 per cent of small businesses – who have survived through the pandemic – have also been hit by rising expenses this year. Supplier costs, petrol and labour came out on top as the costs that SMEs are struggling with the most, and SMEs predict they will struggle with these same costs next year.

The finding was derived from a survey of an independent panel of 210 Australian SME owners and decision makers, commissioned by Small Business Loans Australia, a comparison website helping business owners find the best financing and loan options in Australia. The respondent pool comprised 44 per cent of micro businesses (1-10 employees), 27 per cent of small businesses (11-50 employees), 18 per cent of medium-sized businesses (51-200 employees) and 11 per cent of large businesses (over 200 employees). The full survey results, including breakdowns across business sizes and States, can be found here: smallbusinessloansaustralia.com/resources/loan-to-cope-high-inflation-survey.html

Respondents were asked which, out of the below 10 costs, they are struggling to meet the most now, and will struggle with next year: 

• Labour 
• Supplier costs 
• Petrol 
• Equipment purchases 
• Rent 
• Insurance premiums 
• Office and staff amenities 
• Utilities  
• Business consultants 
• Taxes 

Nearly one in three (31 per cent) SMEs are struggling with the supplier and petrol costs, and 26 per cent cannot pay wages, salaries and contractors. Next, 21 per cent are finding it hard to pay rent, 19 per cent equipment, an equal 17 per cent cannot meet the costs of insurance and tax. Ten (10) per cent cannot meet the cost of office and staff amenities and 8 per cent with business consultants such as HR or accounting. 

Small Business Loans Australia analysed responses across business sizes. Micro businesses predicted they will be better off in meeting expenses across all categories than small and medium-sized businesses: just 66 per cent of micro businesses are struggling with costs and will continue to do so, compared with 15 per cent of small and medium-sized businesses. 

The costs impacting small and medium-sized businesses most are supplier costs (for 46 per cent of small and 34 per cent of medium-sized businesses) and petrol (for 39 per cent and 40 per cent respectively).

Responses were also analysed across the major States. West Australian businesses indicated they are struggling to meet inflated supplier costs, labour costs and petrol prices above any other state. Following 38 per cent of West Australian SMEs who are most likely to struggle paying labour costs, 27 per cent of South Australian businesses, 26 per cent of NSW businesses, 23 per cent of Victorian businesses and 20 per cent of Queensland businesses will also struggle in this category.

Inflated rent is a significant issue among South Australian and NSW SMEs, with 27 per cent and 26 per cent, respectively, struggling to meet this cost. This is followed by just 16 per cent of Victorian and Queensland businesses and 14 per cent of West Australian businesses.

Small Business Loans Australia asked businesses if they would seek financing to cover any of the costs they are struggling with. Over half (54 per cent) said they would look to get a loan to help relieve the financial stress of inflation, with more than a quarter (28 per cent) prepared to take out more than $50,000.

Micro businesses proved again their financial stability, as the least likely group to require a loan, chosen by 32 per cent, compared with 66 per cent of medium-sized businesses and three quarters (75 per cent) of small businesses.

More than a third (37 per cent) of small businesses would consider borrowing more than $50,000 to meet inflated costs, while 8 per cent of micro businesses would borrow the same. 

Alon Rajic, Founder and Managing Director of Small Business Loans Australia, says: “SMEs have shown incredible resilience through the pandemic and are now facing unprecedented inflation. Like Australian households, businesses have been hit by significant increases on the everyday costs of running their operations. SMEs are the backbone of the Australian economy, making up 98 per cent of the business market, but the tightening of budgets often have greater impact on SMEs, which tend to have smaller financial cushioning than bigger corporations.

“If SMEs decide they need financing to get through the challenging period ahead, it is important for them to seek financial advice and research financing options to ensure they are in a position to service a loan over the next few years, and secure the most cost-effective and lowest-risk loan. A loan comparison platform may be a good place to start.”

The full survey results, including breakdowns across business sizes and States, can be found here: smallbusinessloansaustralia.com/resources/loan-to-cope-high-inflation-survey.html 

Australia’s National Centre for Asia Capability is cautioning small and medium-sized businesses, they need to be as Asia-capable as big business in order to thrive in the challenging Chinese economy, with SMEs accounting for 88 per cent of all Australian companies.

A new report, ’Risk and Reward: Opportunities for Australian SMEs in China’, released today by Asialink Business has found Australian SMEs adopting innovative approaches are still achieving success.

“Australian SMEs are still achieving outcomes from China, based on prevailing consumer demand. Consumers recognise quality when they see it. Savvy Australian companies leveraging this demand have adapted their strategies and operating models to find success,” Asialink Business CEO Leigh Howard said.

“While Aussie SMEs don’t have the resources of big business when operating overseas, with innovative approaches many are achieving sustained growth,” said Howard.

“While it’s true big international brands are popular in China, interest in smaller overseas brands with unique offerings has taken off, with small and medium-sized producers of distinctive products leveraging the high regard international consumers have for Australia as a producer of safe, clean, and high-quality products.”

While political tensions, rising freight costs, and travel restrictions present ongoing challenges – overcoming local market competition and playing to a clear niche are increasingly important.

The report shared the hard-won experience of 11 Australian businesses selling into China throughout the pandemic era, across food, fashion, health, and skin care sectors.

“This report shines a light on the innovative approaches these Australian businesses are using to succeed in the region.”

“Covid has largely reset the playing field and we are seeing Australian SMEs experiencing success amid a rise in the number of affluent consumers across Asia. Companies in the skin care, healthcare, food and fashion sectors are some of the best performers, despite supply-chain issues” Howard said.

In the past, many Australian consumer brands were introduced to the China market by “daigou” traders – Chinese students or tourists in Australia who buy up goods at retail or factory outlets and take them back to China for resale. 

COVID-19 dramatically reduced this traffic. But the growing use of e-commerce channels to bring foreign goods into China has picked up the slack.

“The growth of e-commerce has created new digital marketing opportunities for Australian businesses to shape their brand.”

There is growing diversification and interest in new markets such as Southeast Asia and India, however, China remains Australia’s largest export destination and the biggest consumer market in the world. 

“It has also become a more complex market for Australian businesses to trade, since restrictions were imposed on a range of imports, including barley, wine, seafood, beef and coal.”

“Australian SMEs operating in China need to conduct regular risk assessments to ensure they are comfortable with their short and long-term risk exposure.”

“Trade analysis and reporting frequently focus on key commodity sectors and how some of Australia’s largest companies have navigated this complex landscape. But the experience of SMEs has been largely flying under the radar,” Howard said.

Howard said to remain competitive in China, Australian businesses will need to keep pace with rapid changes in consumer preferences and expectations for speed, variety, and service when shopping.

A new survey shows more than half of Australian small business owners suspect one of their staff members is experiencing domestic violence.

The joint research by Domestic Violence NSW and My Business has been released to coincide with White Ribbon Day and shows 54.8% of small business owners suspected or observed one of their colleagues was experiencing domestic or family violence.

Controlling behaviour and emotional abuse topped the list followed by verbal threats and physical violence.

“We know domestic violence is a scourge on Australian society and this shows its huge impact in the workplace too,” says Phil Parisis, General Manager of Product and Sales at My Business, Australia’s largest business organisation.

“Worryingly, almost one in three business leaders didn’t consider themselves to be well equipped to help a domestic violence victim in the workplace or to manage the negative impact on the organisation itself,” says Mr Parisis.

“Given the statistics, it is likely there is someone you are working with that has been impacted by this abuse. Businesses have an important role to play in the response to domestic and family violence (DFV) and this means providing safe and respectful workplaces, promoting policies that contribute to gender equity, providing information and support to staff, and flexibility for staff experiencing DFV so they can remain engaged in the workplace. This should also include helping to provide dignity and financial independence to victim-survivors,” says Domestic Violence NSW CEO Delia Donovan.

“The survey also canvassed the impact domestic violence has on businesses as a whole with more than 40% of respondents indicating they’ve lost money because of it,” says Mr Parisis.

 “The My Business survey highlights how crucial it is to equip managers, HR departments and, most importantly, staff, in safely responding to domestic and family violence disclosures. It’s also vital businesses have the right policies and practices to support victim-survivors. This is especially important with the introduction of 10 days paid leave next year where these conversations may increase,” says Ms Donovan.

“Together as a community, as businesses and as individuals we can provide support, reduce stigma and open the space for victim-survivors to feel safe to speak up,” she says.

1 in 4 Australian women have experienced domestic or family violence and on average one woman a week is murdered by her current or former partner, but the survey shows more needs to be done when it comes to workplace education and having support programs in place for victims.

“My Business is committed to working with Domestic Violence NSW to support more businesses and equip them with the tools, resources and confidence to be able to respond to these issues,” he says.

A 2016 report* found DFV costs the business sector $1.9 billion a year in absenteeism and administrative costs.

“This survey shows it’s not just an issue that relates to the home, this is a workplace issue too. If a person is living with a DFV issue it will continue to impact them when they go to work,” says Mr Parisis.

The survey canvassed 400 business owners online during March and April 2022.

Domestic Violence NSW recommends the following 9 steps for employers to help victims/survivors:

1. Provide a safe workplace that promotes respect and gender equity
2. Provide opportunities for employees to disclose their experience of domestic and family violence and seek support, if they choose to.
3. Avoid pressuring employees to talk about domestic and family violence if they do not want to 
4. Provide information for employees on where they can obtain help
5. Protect the privacy of employees experiencing domestic and family violence
6. Be flexible to support people experiencing violence to maintain their employment
7. Recognise how difficult it can be for victims/survivors to leave an abusive relationship
8. Recognise that the period leading up to and after a victim/survivor leaves can be the riskiest in terms of their safety
9. Proactively learn about domestic and family violence, share information with employees and contribute to efforts to prevent violence and increase gender equity.

Source: Domestic and Family Violence in the Workplace, November 2022, conducted by My Business & Domestic Violence NSW.

*2016 KPMG Report – Cost of Violence Against Women and Their Children in Australia