SME Growth Index April 2025: Insights into Australia’s SME Landscape

The latest ScotPac SME Growth Index reveals a business environment balancing between hope and hardship. While 59% of Australian SMEs forecast revenue growth (up from 53% last year), 33% anticipate contraction, with insolvency risks rising.

Key trends:

• Bank lending declines—only 30% of SMEs plan to borrow from banks, while non-bank lending surges to 55%.
• Wages & superannuation pressures—95% of SMEs report financial strain, with 45% shifting to contractors instead of hiring.
• Investment priorities shifting—sales tools lead innovation spending, but AI adoption remains low (7%).
• Election uncertainty—21% of SMEs identify as swing voters, double the 2022 level, with labour laws and tax relief as top concerns.

As Australia’s SME sector faces volatile conditions, strategic financial planning and smart business decisions will be crucial to navigating the road ahead.

To read the full report visit https://smefundinghub.com/wp-content/uploads/2025/05/SMEGI-22nd-Edition-v2.pdf