Small businesses struggling under the weight of inflation: Thriday

A new survey of 200 small businesses in Australia has shed light on the profound impact of rising costs on entrepreneurs across the country – with over 60 per cent of respondents reporting challenges in paying bills for essential products and services. With prices on the rise and with little sign of cost increases easing, business owners are implementing creative strategies to keep their heads above water.

As inflation takes its toll on economies worldwide, Australian small businesses find themselves in the crosshairs of escalating costs. The increasing prices of essential goods and services are placing immense pressure on entrepreneurs already grappling with challenges in hiring and retaining staff.

In this volatile landscape, many small businesses must make difficult decisions to keep their doors open. The ripple effects of inflation have disrupted supply chains, affected consumer spending patterns, and strained cash flow, leaving businesses to find innovative solutions to weather the storm.

Thriday recently surveyed its clients to better understand the issues small businesses face amidst cost pressures. The survey was completed by 200 small business owners across Australia, delving into their experiences and concerns in the wake of inflationary challenges.

The survey highlights the depth of the issues faced by small businesses, ranging from supply chain disruptions to decreased consumer spending. Some key highlights from the survey included:

• 42% of small businesses had seen their profit margins reduce due to higher operating costs.
• 38% of enterprises had yet to pass on cost increases to their clients due to an expected decline in customer demand.
• A whopping 92% expected high inflation to last for at least the next 12 months.
• Over 60% estimated their costs had risen by at least 10% over the prior 12 months.
• 24% of small businesses had reduced head-count to balance the books.

Michael Nuciforo, CEO of Thriday, stated, “At Thriday, we recognise the challenges faced by small business owners due to the impact of inflation. Small business entrepreneurs are the lifeblood of our economy, and they are doing it tough right now.”

In response to the financial hardships small businesses face, Thriday has to put its money where its mouth is. While Thriday’s accounting software competitors have raised their subscription prices, Thriday has announced a freeze on its subscription fees.

Nuciforo added, “We believe that the cost of financial admin shouldn’t be an additional burden on businesses already grappling with the effects of inflation. We are already the cheapest and easiest solution for small businesses, and we hope our price freeze can help support business owners who need a helping hand right now.”

In these challenging times, Thriday’s comprehensive platform has been a lifeline for thousands of small businesses across Australia. Thriday’s automated banking, accounting, and tax capabilities have enabled entrepreneurs to save up to 6 hours a week on financial admin, allowing them to focus on core business operations and growth.

“With Thriday, small businesses can keep tabs on their cash flow and monitor increases in spending in real-time. Being able to view your business performance at a glance empowers business owners to make decisions that help them deliver sustainable profits.”

The power of automation lies in Thriday’s to simplify complex processes, save time, and reduce human error. By leveraging Thriday’s integrated tools, business owners can navigate financial challenges more effectively, gain real-time insights, and make informed decisions that drive profitability.

As many small businesses navigate the uncharted waters of economic fluctuations for the first time, Thriday remains steadfast in its commitment to standing by small businesses.

Nuciforo concluded, “In these trying times, our collective responsibility is to support and uplift one another. Thriday’s dedication to helping small businesses ‘thrive every day’ goes beyond providing software – it’s about fostering a community of small businesses who are resilient, innovative, and unwavering in their pursuit of success.”