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Small and medium-sized businesses are more likely to suffer under disruptions compared to their larger counterparts, according to new data.
New data has suggested that almost half of Australian businesses experienced supply chain disruptions over the month of January, with small and medium-sized enterprises (SMEs) struggling the most from the obstructions.
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According to Australian Bureau Statistics data on business conditions and sentiments, 47 per cent of all businesses across the country experienced some form of hurdle in their supply chains, with those involved in the wholesale (75 per cent), retail (71 per cent) and manufacturing (65 per cent) industries being the most commonly affected.
The data also stated that 86 per cent of these businesses embraced at least one modification to their processes during the month, with half reportedly changing their ordering processes as one response, while 42 per cent increased the price of their goods or services and 35 per cent pivoted from the way they typically provided their products or services.
However, the same figures also reflected that 36 per cent of these businesses were “affected to a great extent”, with the bulk of this brunt being squared upon SMEs.
Making up of this cohort that were greatly impacted, the findings stated that 36 per cent were small businesses, while 32 per cent were medium-sized businesses.
By comparison, fewer large businesses struggled under the supply chain disruptions, accounting for 31 per cent of those greatly affected.
But while this does present a distinct image of how SMEs are faring over January, additional research suggests that the sector was already struggling prior to this.
A survey of 1,200 SMEs, published in January this year, stated 81.5 per cent of the respondents expressed that cash flows were a top three concern.
Further, a survey conducted by OnDeck over October stated that 44 per cent of SMEs expressed that their cash flow had been impacted over restrictions related to the delta strain, and that 33 per cent required additional stock following the lifting of lockdowns.
Equally as relevant, a survey conducted by Prospa that same month noted that SMEs then required an average of $46,000 in order to take full advantage of Australia’s then-planned reopening.
[Related: NAB reveals key business sectors primed for broker help]
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