About half of regional SMEs see opportunities for growth, but the new reach of online businesses could pose a threat
About half of regional businesses see potential for growth, but a fifth believe there are no opportunities or are unsure of what the opportunities might be, according to Commonwealth Bank’s Regional Business Insights report.
The poll surveyed 470 regional businesses about the opportunities and challenges they face. Data revealed that businesses cite strong markets, growing populations, and improving infrastructure as the foundations for potential growth. It’s these factors that underpin optimism in regional Australia, causing a knock-on effect of new opportunities for a range of industries, CommBank executive general manager for regional and agricultural banking Grant Cairns said in statement.
For Cairns, “clarity around business challenges and opportunities is the first step towards innovation and success”. However, more than a quarter of regional businesses said competition was their biggest challenge, followed by government regulations.
Online businesses also pose a significant threat to SMEs in regional Australia. Although they allow trade to extend beyond local borders, they also give competitors greater access to new markets in regional communities.
Another interesting finding in the report suggested that regional businesses demonstrate the same degree of creativity and innovation as their metro counterparts, and they empower their staff to be creative thinkers and risk takers as well.
“What this means, really, is that businesses trust their employees to try new things in order to better meet the needs of their customers. Businesses are recognising that staff have valuable insights into what customers are looking for and where there may be opportunities,” Cairns added.
The report’s key findings:
- 49% of regional businesses see an opportunity for growth and/or to boost staff numbers, while 11% find no opportunities, and 9% are unsure about available opportunities.
- 57% see their business expanding, while 24% either are unsure about future opportunities, want to keep their business stable, or see no future opportunities.
- 25% of regional businesses said strong market or industry performance created opportunity, while 21% said population growth was creating opportunity and 14% said there was opportunity as a result of increased infrastructure.
- 27% of regional businesses said competition was their biggest challenge, while 24% consider government regulations as a particular challenge.
