SMEs (Small and Medium Enterprises) are responsible for approximately 57% of all Gross Domestic Product (GDP) in Australia. NAB Bank conducted a survey of some 800 small and medium enterprises between June 2016 and June 2017, and the findings indicate that Australian SMEs generated employment opportunities for 7 million people. SMEs in Australia have turnovers of $100,000 – $50 million per annum.
Down under, 67% of millennial SMEs are looking to expand operations by 2020. The Australian small business scene is conducive to bold new ideas. According to the White Paper Report – Moments That Matter – some 45% of the 800 Australian businesses that were surveyed are planning to expand operations by 2020. In the past 1 year, some 33% + of these SMEs have been implementing marketing strategies to gain additional customers.
Additionally, 40% of SMEs are looking to increase operations by adopting growth-oriented strategies, and some 32% of SMEs in Australia will look online to boost their sales. It is interesting to point out that some 50% of SMEs have been operational for less than a decade, while 56% of them are managed by Generation Xers. Among that same group of people, some 63% of millennial business owners attested to the importance of the Internet in business activity.
Some 23% of SMEs run by millennials were e-commerce operations only, with no physical presence or interaction with customers. As it pertains to future challenges in the Australian business landscape, there is a feeling of optimism among business owners. Some 80% of SMEs expressed bullishness, while 66% were confident about their business operations in coming years. The forward-nature of Australian small businesses is such that 67% are staying abreast of the latest technological changes to remain competitive, but just 14% of newer Aussie SMEs are concerned about the future challenges in the Australian SME arena.
How Are Australian Entrepreneurs Funding Business Activity?
Various initiatives are currently in place in Australia to boost investment in entrepreneurial activities. The Australian government currently runs an Entrepreneurs Program to provide support and assistance for growth-related activities. In terms of the scope of the project, it caters to SMEs through innovative connections, incubator-related assistance, business management activity, and commercialization of SMEs. However, with respect to actual capital Australians SMEs are increasingly turning towards Capify for their funding.
Capify has been praised by Australian media for a number of reasons. This fully licensed credit provider issues loans in the amount of AU$5,000 on the low end to AU$400,000 on the high-end. Given that this credit provider offers unsecured loans with online applications, it is much easier for Australian SMEs to access lines of credit than ever before. Traditional banks make it difficult for Australian SMEs to access the credit that they need. The global financial crisis of 2009 put the brakes on lending activity, and also squeezed clients by limiting their accessibility to credit.
However, there are certain requirements in place which make Capify successful at what it does. For example, SMEs must be operational for at least 6 months and have a minimum turnover of AU$10,000. What’s interesting about this company’s services is that they do not levy interest rates on their loans – they simply set a total payback amount which the Australian SME will pay back as per the contract. The company was the winner of the prestigious 2016 Australian Business Banking Awards for Best Business Lender.
As one of the top 3 most respected Australian SME business loans providers Capify takes just 3 days to respond to loan applications. In total, Capify has issued over $100 million to Australian business owners, and it is not a traditional bank credit provider. On TrustPilot, Capify has garnered 214 positive reviews from clients with a 5/5 excellent rating. 85% of clients regard the company services as excellent, and 14% as great. This is a positive endorsement of the company services, and a testament to the importance of Capify to Australian SMEs.
