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Australia’s small-business owners are starting to feel more confident about their immediate outlook, according to new research from SME lender Judo Bank.
According to an online survey of 1,000 SME owners, sourced from a consumer insights panel and conducted between 26 September and 1 October 2025, four in five (81 per cent) reported they felt their business was in stable or strong health.
This represented a 7 per cent jump in the number of businesses reporting strong health compared to the last cut of data released in February 2025.
Meanwhile, almost seven in 10 (68 per cent) of SME owners surveyed said they felt confident about business growth in the next year.
Judo Bank chief customer officer Frank Versace said the figures displayed the continued resilience of Australia’s small business sector.
“Our research shows the business environment has stabilised, with a significant increase of SMEs reporting strong business health and renewed confidence,” he said.
“We continue to see the resilience of Australia’s small business sector, particularly among younger entrepreneurs, who demonstrate remarkable confidence despite ongoing economic challenges.”
The research also provided some insight to expansion and growth plans of business owners and noted they were more prevalent among younger business owners.
“Our research underscores that Australian SMEs are adapting their investment strategies to current market conditions,” Versace added.
“The continued focus on business expansion, particularly among younger owners, reflects an underlying confidence in, and commitment to future growth. Meanwhile, businesses facing challenges are strategically increasing marketing efforts to strengthen their position and sales.”
SMEs also outlined their productivity priorities and how these differ across generations. More established business owners prioritised tax reform and simplified regulatory compliance, while Gen Z operators focused on technology adoption, including AI.
Sixty per cent of Gen Z and 48 per cent of Millennial business owners said they already use AI for administrative tasks, customer service, data analysis, and content creation and marketing.
“Different approaches are needed to address the distinct needs of different business demographics. For younger business owners, who are heavily focused on technology adoption and skills development, initiatives that facilitate digital transformation and workforce training would be especially impactful,” Versace added.
“Younger entrepreneurs are looking beyond traditional regulatory reform and are embracing innovation to drive productivity. By supporting innovation, we can unlock significant growth potential among next-generation business leaders who will fuel tomorrow’s economic growth, and are already demonstrating higher confidence.”
The data comes ahead of the second annual Commercial Finance Awards, sponsored by principal partner Judo Bank, on Friday, 21 November 2025, at the Four Seasons, Sydney.
This national program recognises the leading accounting professionals, commercial brokers, brokerages, and aggregators shaping the Australian commercial finance industry.
For more information about the awards, click here.
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