Published on 28/07/2022 by Any Business.Com.Au

Renewed confidence points to small business resurgence

Small businesses in Australia now have the chance to snare a bigger piece of the Commonwealth pie, with rules governing Commonwealth spending changed to double opportunities for SMEs earlier this month.

Under major changes to procurement rules, up to 20 per cent of the government's $70b average yearly spend on contracts is now being offered to small and medium businesses, up from the previous 10 per cent.

The changes to the Commonwealth Procurement Rules have been made in an attempt to help small and medium businesses grow while simultaneously bolstering the wider economy.

The new rules are expected to assist small and medium businesses to speed up their recovery from the pandemic and natural disasters, as well as helping them in the face of rising costs.

It could ultimately help small and medium businesses to employ more staff, an issue that seems to still be affecting businesses across the board.

Renewed confidence for small businesses

The news comes on the back of a renewed confidence for the small business sector in general.

After social distancing regulations, the spread of Omicron, staffing struggles and with a lot of people now being able to choose to work from home, retail, hospitality and franchise businesses are beginning to see some light at the end of the tunnel.

Consumer studies are showing that diners can't wait to get off the couch and back into the restaurant.

Recent surveys indicate that at least 70% of consumers have returned to their pre-COVID dining habits, and 67% of respondents are eating out at restaurants at least once a week.

Some trends established during the pandemic appear to be the new normal. Al Fresco dining continues to be popular while a majority of consumers also want their favourite restaurants to continue offering takeaway - technology and the ability to do so developed by many during lockdown times.

Franchises flying back into popularity

The franchising market has seen a wave of ups and downs with covid restrictions and operating changes, however most businesses were able to adapt and segment their place in an evolving landscape.

Hospitality brands were able to change their business model to focus on takeaway and delivery while retail shops saw an increase in online orders.

Essential business industries continued to see growth, while franchising sales continued to be steady over the year – with a big 2022 expected after increased vaccination rates across all states.

Although businesses continue to face staffing shortages, overall the industry proved to be highly resilient and is adapting to the post-pandemic environment.

Tourism tempting visitors back to the CBD

The return of international tourism is also contributing to the reinvigoration of the country's hospitality industry.

International tourism plays a critical role in supporting hospitality in Australia, particularly in the inner CBDs.

Hospitality and tourism operators breathed a big sigh of relief when the Federal Government finally announced the lifting of international border closures earlier this year.

While it has somewhat changed the fortunes of these industries to date in 2022, the biggest influx of internationals are more likely to be in the latter part of the year.

As people begin to travel both internationally and interstate again, occupancy rates across the country are expected to come back to pre-covid levels and eventually grow, thrive and increase as they had prior to the pandemic.

AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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