Australian small and medium-sized enterprises (SMEs) are responding to growing economic uncertainty with bold strategies and a strong focus on customers, according to the latest SME Business Insights data.
The Q2 2025 report shows cashflow (44%), profitability (38%), and government policies (37%) remain top concerns for SMEs, with each rising significantly compared to last year. Despite these pressures, business owners are taking proactive measures to stay competitive. Half of the surveyed SMEs are cutting costs and renegotiating supplier agreements. Many are also increasing marketing efforts (37%), investing in skilled talent (29%), and revising pricing strategies (29%) to maintain market position.
Andrew Auerbach, Group Executive of Business & Private Banking, highlighted the resilience of Australian SMEs. He noted that business confidence has climbed above its long-term average in the past three months, even amid global economic uncertainty. “Smarter cashflow management and deeper customer engagement show us what leadership looks like in action,” Auerbach said. “Our customers are leaning into opportunities with agility and optimism to meet a variety of challenges.”
This spirit of adaptability and customer focus will be showcased at the inaugural NAB Business Summit in Melbourne. More than 450 entrepreneurs and industry leaders will discuss the key issues facing SMEs, exchange ideas, and highlight strategies to enhance customer engagement. The event features prominent business leaders, including Nick Palumbo, founder of Gelato Messina, Chris Lucas, CEO of The Lucas Group, and Laura Henshaw, co-founder and CEO of Kic. They will share insights on building and growing successful businesses in challenging environments.
“Running a business today means focusing on every detail, from product quality to customer experience,” Palumbo said. “At Messina, we invest in farm-sourced ingredients and in-house chocolate production to maintain our vision and keep customers returning.” Lucas added, “Hospitality, like fashion, is fast-moving. Businesses need to be quick, flexible, and open-minded to keep up with trends and market changes.” Henshaw emphasized the importance of community and values. “True impact comes from listening to customers, staying grounded in your principles, and solving the problems that matter most,” she said.
The NAB Business Summit will examine critical topics for SMEs, including shifting social trends, the rise of artificial intelligence, and global economic volatility. The discussions aim to equip business owners with tools to navigate uncertainty and seize new opportunities. As the largest business bank in Australia, serving more than 1.1 million SME customers, NAB provides tailored lending, strategic advice, and resources to help businesses thrive. With a dedicated team of 6,000 bankers across 486 locations, the bank continues to support SMEs in adapting to an ever-changing economic landscape.
By embracing bold strategies, investing in people, and maintaining a strong focus on customers, Australian SMEs are demonstrating resilience and leadership. These efforts highlight how businesses can not only survive but also grow in uncertain times.
