Updates to this research will be published weekly to track the impact and response to COVID-19. Week 14 results are now available.
The latest wave of the COVID-19 SME Weekly Research Tracker published by ACA Research and TEG Insights reports the number of small and medium Australian businesses expecting revenues to increase over the next 4 weeks is only 22%. This is despite many lockdown restrictions being relaxed throughout Australia.
Table 1: Future Revenue Expectations
With 54% of SMEs now reporting decreasing revenues of greater than 30% due to COVID-19, we can conclude that most business decision makers are expecting a long, slow climb back to pre-COVID levels.
Table 2: Decline in Revenue due to COVID-19
The COVID-19 SME Weekly Tracker is conducted by leading business market research firm ACA Research in partnership with TEG Insights and tracks the impact of COVID-19 across more than 300 small and medium enterprises each week.
Despite caution about the road to recovery, jobs data looks slightly more positive in this wave with 35% reporting cuts as opposed to 40% last week. Hopefully this a sign that businesses are receiving JobKeeper payments and also preparing for restrictions to be lifted by reemploying staff. It is also positive that confidence in the Government remains steady.
Table 3: Percentage Change in the Number of Staff (Before the Crisis vs Now)
We are in a holding pattern with many indicators remaining consistent with last week. There is some cautious optimism that revenues will increase as the restrictions are relaxed, but no strong expectations of a fast recovery. While sentiment remains positive towards the Government, the data over the next few weeks will signify the success of the stimulus in saving jobs and reigniting the economy.
Please click on this link to access the full report including subgroup analysis by industry sector, size of business and State. ACA Research and TEG Insights will publish weekly updates of this research to track the impact and response to COVID-19. Hopefully the results will become more positive as we work through this crisis together.