iscover
iscover 
As detailed in ScotPac’s SME Growth Index Report, 59 per cent of Aussie SMEs expect to see revenue growth over the next six months.
This is close to the record-high forecast of 62.6 per cent in 2014.
However, there is still a large portion of business owners who are pessimistic about the future of revenue growth, with a third expecting revenue to fall.
ScotPac’s group executive – client acquisition, Craig Michie, said that despite a large portion concerned about future revenue growth, it’s encouraging to see many thriving following some difficult years.
“Considering the cost challenges SMEs faced in 2024 it’s great news that average revenue forecasts remain in the black,” he said.
“There are more challenges on the horizon for business owners with the super guarantee set to rise again in July, and the ongoing uncertainty around tariff policies.
“However, with inflation and interest rates expected to ease in coming months, there are good prospects of SME confidence lifting across more States and sectors.”
There is a wide margin between those expecting growth and those preparing for a decline in revenue.
The average projected growth was 1.4 per cent. The most optimistic expect revenue increases of 18 per cent and the most pessimistic predict decreases of 30 per cent.
Queensland was the most positive state, forecasting revenue increases of 10 per cent on average. Western Australia followed at 7 per cent.
Victoria was the most pessimistic, still reeling from pandemic challenges, with an average expectation of a 9 per cent decline in revenue.
On an industry level, mining was the most optimistic, with average growth expectations of 6.3 per cent and construction most pessimistic, with expectations of an 8.3 per cent fall.
“The surge in optimism from businesses in resource-rich States shows no signs of slowing, while SMEs with tight margins or high exposure to discretionary spending are understandably more cautious about the future,” said Michie.
For businesses preparing for the future, Michie highlighted the benefit of seeking finance options.
“Whether it’s managing payroll, paying down debt, or gearing up for growth, a range of finance options are available to help SMEs in almost any situation,” Michie said.
The current state of SME lending was revealed in a recent Broker Daily article.
Small business loans surged following the Reserve Bank’s February rate cut.
In the three months post-February rate decision, SME loan numbers were 40 per cent higher than the same period in 2024.
Increased loan activity from SME borrowers is expected to continue throughout 2025 as experts predict further cuts to come.
[Related: Small business loans surge following RBA cuts]
