This Accord, between Australia’s customer owned banks, mutual banks, building societies, credit unions and commercial banks is a comprehensive set of anti-scam measures across the entire industry.

“This Scam-Safe Accord is a new offensive in the war on scams. It reflects the banking sector’s unwavering commitment to safeguarding every Australian. It outlines the actions every bank will take to protect Australian consumers and small businesses and to harden the system against scams,” said ABA CEO Anna Bligh.

“The initiatives we launch today are a significant step forward and demonstrate the banking industry’s commitment to fight scams. It doesn’t matter if someone banks with a regional mutual bank or the largest bank in the country, customers can be confident their bank is working hard to protect their money,” said COBA CEO Mike Lawrence.

At the heart of the Scam-Safe Accord is a $100 million investment by the industry in a new confirmation of payee system to be rolled out across all Australian banks. Confirmation of payee will help reduce scams by ensuring people can confirm they are transferring money to the person they intend to.

With 15.4 billion transactions worth $2.5 trillion occurring every year across the banking sector, the design and build of an industry wide confirmation of payee system is a major undertaking. Design of the new system will start straight away and it will be built and rolled out over 2024 and 2025.

Banks have committed to introduce new and higher protections into their systems, meaning customers should expect more warnings and delays when paying someone new or increasing payment limits. To prevent misuse of accounts through identity fraud, all banks will uplift technology and controls, including all major banks introducing unique identification measures known as biometric checks when opening new accounts.

In addition, the Scam-Safe Accord includes a major expansion of intelligence sharing across the sector with all banks acting on scams intelligence from the Australian Financial Crimes Exchange by mid-2024, and joining the Fraud Reporting Exchange. This means critical information is shared across the banking sector at speed about scam transactions, improving the chances of preventing scams and recovering stolen funds.

“Preventing scammers from taking the hard-earned money of everyday Australians is a shared responsibility. As scammers work hard to devise new ways to steal money, it’s critical that governments, industry and consumers remain vigilant to make Australia a hard target for scammers,” said Mike Lawrence.

“Recent data from banks shows that $600 million in stolen funds has been returned to customers over the last year. To keep up this effort it is critical that government, banks, telcos, social media and crypto platforms work together as part of an eco-system to stay one step ahead of sophisticated criminal gangs,” Anna Bligh said.

Banks play a key role but are only one part of the solution. The ABA and COBA look forward to seeing details from other sectors about their plans to proactively address scams.

The Scam-Safe Accord initiatives are based on the principles of disrupt, detect and respond. They include the following commitments from banks. The initiatives define a banking sector industry standard following the authorisation, from the Australian Competition and Consumer Commission in August for ABA banks to work collectively to develop initiatives to help reduce scams.

Scam-Safe Accord 

The Accord applies to all members of the Australian Banking Association and the Customer Owned Banking Association, and includes banks, mutual banks, credit unions and building societies.

The Australian Banking Association’s membership is comprised of 20 banks from across Australia. The ABA advocates for a strong, competitive and innovative banking industry that delivers excellent and equitable outcomes for customers.

The Australian Financial Crimes Exchange: Providing security capabilities, technology, and intelligence in one central platform, the AFCX brings together businesses, government, law enforcement agencies and industry groups to protect Australian consumers and businesses from financial crime, cyber-crime and scams.

The Customer Owned Banking Association is the industry association for Australia’s customer-owned banking institutions – mutual banks, credit unions and building societies. COBA champions the customer owned banking model and advocates for a more competitive retail banking sector that benefits all Australians.

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One of the hardest parts of starting an ecommerce business is finding the right tools with all the right functionality for the right price. With the ecommerce software industry overflowing with solutions that promise to cater to your every need and help you grow, finding the perfect solution is easier said than done. This is partly because “ecommerce software” is extremely vague. Thanks to years of competing for top search result rankings, vendors have inadvertently (or not) flooded the internet with the keywords “ecommerce software,” falsely deeming may tools that don’t necessarily support an ecommerce venture as entirely capable.

Because of this practice, and the constantly-changing nature of the way we buy, sell, and consume, it’s become nearly impossible to determine what features ecommerce software should or shouldn’t have. So, I’m taking a more flexible approach in this article.

We’ll look at the essential functionality that every ecommerce business needs, and then discuss semi-essential features, and nice-to-have features. Then, to close, we’ll talk about what you should consider before you hand over your credit card to an “ecommerce software” vendor.

Source: Zoho

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Strengthening Industry-Government Collaboration

Industry experts applaud the strategy’s emphasis on fostering stronger collaboration between the government and the private sector. As David Hayes, Regional Director ANZ at Arctic Wolf, points out, “Sharing threat intelligence in real-time is crucial in staying ahead of malicious actors.” This collaborative approach will enable the security community to anticipate and effectively counter emerging cyber threats.

Tackling the Culture of Concealment

The strategy also addresses the pervasive culture of concealing cyberattacks within organizations. Mark Thomas, Director of Arctic Wolf Security Services, ANZ, highlights the alarming statistic that “a quarter of ANZ organizations knowingly concealed a cyberattack to avoid reputational damages.” This culture of silence hinders effective response and recovery efforts. The government’s efforts to promote transparency and collaboration are essential in addressing this issue.

Supporting SMBs

SMBs, the backbone of the Australian economy, face unique challenges in cybersecurity. The strategy’s $18.2 million funding package for SMBs is a welcome step towards bolstering their cyber resilience. This funding will support initiatives such as the cyber health-check program, which will provide SMBs with tailored assessments of their cybersecurity posture.

Measuring Cyber Maturity

The strategy also emphasizes the importance of measuring cyber maturity. Robert Le Busque, Regional Vice President, Asia Pacific, at Verizon Business, underscores the significance of this aspect, stating, “Measuring cyber maturity is essential to efficiently managing business risk.” By understanding their cyber maturity levels, businesses can effectively allocate resources and implement appropriate security measures.

Addressing Ransomware Threats

Ransomware attacks continue to pose a significant threat to Australian businesses. Verizon’s Data Breach Investigations Report (DBIR) reveals that the cost per ransomware incident has doubled over the past two years. The strategy’s focus on combating ransomware is crucial in mitigating this growing threat.

Embracing Resilience and Collaboration

In today’s interconnected world, resilience is paramount. As Robert Le Busque aptly states, “When it comes to digital resilience and ensuring Australia’s survival within this region (and the world), we need to acknowledge our dependence on increasingly distributed and public networks.” The strategy’s emphasis on building true resilience and fostering collaboration is essential in safeguarding Australia’s digital future.

Conclusion

The Australian government’s $586.9 million National Cyber Security Strategy is a significant step towards protecting the nation’s digital infrastructure and businesses. By fostering industry-government collaboration, addressing the culture of concealment, supporting SMBs, measuring cyber maturity, combating ransomware threats, and embracing resilience and collaboration, the strategy lays a solid foundation for a more secure and prosperous digital future for Australia.

The post The new cybersecurity funding: what it means for your SME appeared first on Small Business Connections.

Jonathan Perumal, Country Manager, ANZ at Safeguard Global, shares four predictions for the HR trends Australian businesses can expect to see as they head into the new year.

1. Overseas hiring driving expansion into new markets

“For much of 2023, many Australian businesses were growing their workforces onshore by hiring within Australia. However, we are increasingly seeing organisations hiring employees based overseas as a means of expanding their business into bigger addressable markets. This is especially true of high-growth industries, such as the technology sector, which is growing by 16 percent per year on average, according to ASIC. Australian companies from technology and defence to healthcare are looking to the United States and Europe in their expansion efforts.

According to Airwallex’s Australian Business Growth Index, more than two thirds of Australian SMEs say they plan to be operational outside of the country by 2027. As remote working possibilities and outsourced employment models grow, so too will opportunities for Australian businesses to expand their operations internationally. Companies that limit their horizon to national shores and fail to embrace the benefits of introducing globally diverse experiences and ideas risk being left behind.”

2. More investment in training to upskill workers

“Australia’s tight labour market is exacerbating staff shortages for skilled roles, a problem which will persist into 2024 and one that is forcing business leaders to rethink how they utilise their existing workforce. As a result, businesses are likely to increase their investment in staff training and development to strengthen the in-house skills base, through courses covering topics including coding, cyber and project management.

Training and upskilling opportunities are essential to professional development, which in turn boosts employee morale, encouraging existing workers to stay and attracting talent to your business. Professional development opportunities were ranked among the most important job characteristic by respondents in Safeguard Global’s Global Employee Satisfaction & Benefits Study.

By facilitating access to leadership pathways and technical training programs, businesses can ensure their employees are satisfied with their career prospects and maximise their contribution to the organisation.”

3. Greater use of AI in hiring and onboarding practices

“It’s only a matter of time before AI becomes cemented in business operations, including in hiring and onboarding processes, a trend we should see come to fruition in 2024. This technology is expected to expand rapidly, with FIS’ Global Innovation Report 2023 finding that half of Australian firms are already using generative AI, with 71 percent planning to grow their investment in this area next year

AI can streamline HR processes, mitigate bias, and improve decision-making through better analysis. For example, AI can be used to assess current roles and quickly generate job specifications based on best practice. In addition, as AI continues to replace repetitive and functional tasks, employees will have more time to focus on creative, strategic, and meaningful work and we will see a shift in the types of roles businesses hire for.”

4. Increasing demand for remote leadership positions

“Traditionally, companies have hired remote workers to fill executional roles like coding and programming, but we are seeing an increase in remote positions opening at the executive level, a trend we predict will continue. When Australia opened again after the COVID lockdowns, a considerable number of people repatriated to their home countries or moved abroad, requiring companies to shift their policies and expectations for employees to remain in Australia – we have well and truly entered the new world of work without borders.

Hiring globally for leadership roles creates an opportunity for businesses to draw from a wider talent pool with more diverse experience, which can be used to foster homegrown teams into future leadership positions.”

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Highlights from the research:

• Samsung beats Apple as the world’s most innovative company, with the highest number of new patents in 2022 (8,513).
• This is despite Apple having spent the most on intangible assets out of all companies ($2.2 Trillion).
• Intel invested 31.4% ($16.9 billion) of their $54 billion revenue – the most out of all companies.
• The Electronics sector is the most frequent in the top 10 – 3 out of 10 companies dominate.
• E-commerce giant, Amazon, has invested the most in R&D in the last year ($81 billion)

The Top 10 Most Innovative Companies

Please see the full dataset here.   (Dataset sourced from Harrity and Seeking Alpha, October 25, 2023)

Consumer Electronic companies are the most innovative

The Dataset used can reveal that Samsung is the most innovative company, with an innovation score of 9.25/10. The consumer electronics giant, known for manufacturing televisions, mobile phones and audio equipment issued 8,513 new patents in 2022, which is the most out of all companies in the data. With the new Samsung AI technology, which will be featured in their Galaxy S24 smartphone due for release in 20242, it is no surprise to see the electronic giants rank so high. suggesting that there are new technologies on the horizon.

Competitor Apple is the second-most innovative company, with an innovation score of 9.03/10. Apple invested over $29 billion on R&D in the past year, which is the third-highest out of companies in the top 10, and they reported over a whopping $2.29 Trillion in intangible assets in 2022, also ranking first.  Apple is also investing in new materials, clean electricity and low-carbon shipping with the aim of making all of its products carbon-neutral by 20303.

In third place with a score of 8.33/10 is IT giant IBM, known for its hybrid cloud and AI solutions. Registering 4,743 patents last year, half that of Samsung in first place, they have surprisingly lost their 29-year reign as the patent leader in the US4. Despite this, IBM has shifted their focus to high-quality, high-impact innovation in the hybrid cloud, data and AI, automation, security, semiconductors, and quantum computing areas.

Johnson & Johnson is fourth, scoring 8.23/10 in the innovation index. They have the second-highest number of intangible assets ($46.24 billion) which is to be expected when they trademark brands such as Neutrogena, Listerine and Tylenol. The health giants spent $14.78 billion on R&D last year, and they recently met with China and Japan as part of their plans to transform healthcare innovation in those countries through new therapies and AI technologies5.

Amazon invests the most in R&D

In joint sixth place with Microsoft with an innovation score of 8.12/10, is Amazon, who spent $81.7 billion on R&D in 2022, the most out of all companies analyzed and is 65% more than Apple and Samsung combined. This isn’t shocking considering their presence in both the retail and technology sectors. Just recently they rolled out a new AI-powered Image Generator6 for advertisers, which will allow for better ad performance, propelling themselves further into the AI market.

The post Can you name the world’s top 10 most innovative companies? appeared first on Small Business Connections.

This said, it’s imperative to leverage our world-class research to navigate our rapidly evolving world, with the urgent threats of climate change, the potential for future pandemics, supply chain disruptions and cost of living ever-looming. The risks of not properly fostering research commercialisation include limiting benefits to economic growth and unlocking world-changing innovations that create new products, services and jobs. While strong collaboration between universities and industry is critically important, external support in helping academics create robust business models, and commercial structures to wrap around academic IP, is also key. 

The challenges of commercialising IP – Ventures, especially those emerging from academic backgrounds, face three primary challenges:

1. Technical Challenges: While academics usually excel in fundamental research, the technical journey requires intense product development and commercialisation skills. Taking technologies from university to market requires substantial capital investments and involves more risk than the average startup investment. Because of this, some academic operators struggle to navigate this stage and reach commercial readiness. Several universities have established engineering R&D units to drive academic research further along the “Technology Readiness Level” (TRL) spectrum, thus helping “commercialise” the fundamental research into a prototype, MVP, or product itself. 

Despite University-driven commercialisation efforts, challenges still remain. The Australian Chamber of Commerce and Industry has observed that oftentimes, universities encourage researchers to focus on academic publications, rather than commercialisation or collaboration with business. Local governments are already making moves to address this gap, with the Victorian government’s investment fund, Breakthrough Victoria, backing five Victorian universities to help them bring research to market.

2. Legal Challenges: Intellectual property (IP) rights are also a significant hurdle for startups that emerge from academia. Universities are understandably protective of the IP developed under their purview. Researchers often must negotiate the tricky terrain of licensing or transferring IP rights, allowing them to transform academic research into a business venture. 

A UK government study into the commercialisation of university IP found that academic institutions, businesses and investors often reported difficulties with negotiation on equity shares, royalties and technology valuations. In Australia, the Higher Education Research Commercialisation (HERC) Intellectual Property (IP) Framework (the Framework) was introduced in 2021 to standardise the process. This framework, and other related government efforts, will be useful in providing academics with clear direction and support when looking to spin-out IP from universities. 

3. Commercial Challenges: With a technical product in hand and the resolution around IP rights underway, the third stage is the business model. Deep Tech companies are usually so cutting-edge that they may create new markets, or provide a solution to a problem that is not yet well-defined. This departure point is the opposite to most startups, who typically pick an existent problem and develop a tech product to solve that problem. This “technology-first” rather than “problem-first” approach to business building has means many deep tech businesses find themselves classified as “Solutions in Search of a Problem” (SISP). 

This means their commercial legwork is particularly important. Specifically, it will involve understanding the market the product will be sold into, identifying key customer groups, establishing the right distribution channels, and thinking through the financials of the business.

Bridging the research to realisation gap

Having worked closely with deep tech startups emerging from academic backgrounds, something I frequently observe is an unfamiliarity with the commercial aspect. Academics and researchers have built esteemed careers in academic research and may not be expert in navigating business and commercial challenges.

These startups need help with developing the right fundamentals and foundations for the business itself, that wrap around the technology. This means establishing problem-solution fit, knowing who your customers and where they are, what your channels to market are, and proving and refining product-market fit over time.

One element of the business that deep tech founders should ensure they build internal capability around is the finance function. In challenging capital markets, founders need to understand and present defensible finances to investors. Startups, may need guidance in accessing incentives such as the Research & Development tax incentives or other government grants, that can assist in creating another cashflow stream into the business, and securing other funding to support the equity / debt blend in the business. 

These challenges can be overcome in a few ways. Founders can onboard a commercial co-founder to help drive commercial needs in the business or participate in an accelerator program to assist in building out the business. Alternatively, engaging external advisers can be a non-dilutive approach to seeking support. Advisers may include virtual CFOs or government incentives advisers who can build robust business models, lay down business foundations, ensure sound financial structure, and provide access to non-dilutive funding.

A brilliant example of a thriving deep tech venture is Vexev; developed out of the research driven in the PhDs of Vexev founders John Caroll and Eamonn Colley. Vexev is building a product that leverages computational fluid dynamics to detect vascular disease. It has proved itself not only to be a standout R&D company, but also as a business that understands market dynamics, unit economics and government incentives. Its strength doesn’t lie solely in its ground-breaking technology but also in its ability to align with leading venture capital funds and gain access to crucial support. 

While universities have a key role to play as startup incubators, the path from groundbreaking academia to a commercial product is not always straightforward. It’s a journey that needs outside experts to navigate successfully. By having the backing to better understand the legal and financial aspects of commercialisation, academic startups can realise their potential and become drivers of Australia’s innovation economy.

By Sophie Ritchie, Head of Portfolio Management, KPMG High Growth Ventures

The post How can we help startups emerging from universities? appeared first on Small Business Connections.

Key Highlights:

• Nearly 48% of Australians have or plan to start a side hustle
• Over 950,000 Australians now work multiple jobs, up more than 10% from last year
• Coco Hou provides valuable tips on how to distinguish between a hobby and a business based on key criteria
• Turning a passion into a business can lead to tax deductions and government benefits
• She warns many Aussies are potentially missing out on tax deductions

A national report released by ING in Australia revealed nearly half (48%) of the Australians surveyed either have or are planning to start a side hustle. New data from the Australian Bureau of Statistics, reveals there are now close to 950,000 Aussies working multiple jobs, up more than 10 per cent since last year.

According to Coco Hou, CEO of Platinum Accounting Australia, a highly respected leading national accounting, taxation, advisory and bookkeeping service, any additional income-earning activity that you engage in apart from your primary source of income is counted as a side hustle. This includes activities like product selling, freelance work, consulting or running a small business alongside your regular job.

With over a decade of experience navigating Australia’s complex taxation system, Hou is an expert in Australian taxation and has come up with some tips for those with a side hustle, reminding them that they can make tax claims on their side hustles as well as their primary jobs.

You must report additional income to the ATO

“Yes, you must report additional income from your side hustle to the ATO. Generally, when you provide labour, skills or goods for a fee, you need to report this income in the tax return. It doesn’t matter what role you fulfil in the side hustle, be it employee or independent contractor. Even one-off payments need to be reported,” Hou said.

“Having a Pay As You Go instalment system in place is a good way to side aside tax payments throughout the year, so that you’ll avoid accumulating a huge liability at the end of the year. The ATO is aware that many Aussies have picked up side hustles since the pandemic and it’s been at the forefront of their minds this tax season, so don’t get caught trying to evade side hustle taxes.”

Hobby or business? 

Hou went on to explain that in Australia, we distinguish between a hobby and a business based on five criteria:

1. Intention to make a profit
2. Size and scale
3. Repetition and regularity of activities
4. Commercial intent
5. Knowledge and expertise

“For example, if you make jewellery at home for a few friends who take you out for a coffee in lieu, then under such a private arrangement, there would be no tax consequences. But if you’re regularly setting up stalls at Sunday markets and selling through Etsy, then you would,” Hou explained.

Turning your hobby into a business

“The benefit of turning your passion into a money maker is that you can make tax deductions from your business expenditures, and you could possibly pay less tax. When you formally become a business, you’d also want to register for a website domain, which will then give you access to government benefits and concessions,” Hou continued.

“One question clients often ask me is about Goods and Services Tax (GST). Basically, if your side hustle involves providing goods or services with an annual turnover in excess of $75,000, then you must register for GST. This means that you’ll have to charge an additional ten percent on top of your sales, and also file a business activity statement. However, this also means that you can claim back the GST that you paid on business expenses.”

What you can claim

“You can claim deductions for expenses that you incurred from running your business. Typically this includes supplies, equipment, marketing costs, travel expenses and even home office expenses if you have a workspace set up in your home for this purpose,” Hou added.

“As always, you must remember to keep your records in order and keep your receipts so that you can make these claims. You can use bookkeeping software to track and file your expenses so as to keep it all streamlined.”

Side hustles are worth it

“I encourage Aussies to pick up a side hustle as it adds valuable income to their financial position. Besides this, having a side hustle can really grow your skills, expand your networks and you might even discover a new interest. If your side hustle is already something you love, this could be a lifelong thing that could take you well into retirement and keep you busy,” Hou said.

“However, if you do have a side hustle, then the best thing to do is to get an accountant to help you keep track of the ins and outs of the business end. Having a reliable accountant by your side will always be an asset to you because we’ll have the knowledge of how to reduce your tax liability while helping you save money and avoid tax penalties due to mistakes.”

The post How to join the record number of Aussies embracing side hustles appeared first on Small Business Connections.

• As shoppers grapple with the high cost of living, 70% are more likely to shop during the BFCM weekend and upcoming peak sales moments to get more for their money.
• Despite a challenging economy, 63% of Australian shoppers plan to spend as much or more during the BFCM weekend this year compared to last year.
• Consumers are more intentional than ever as they look to make their money go further, with 53% planning to do the bulk of their holiday shopping during the BFCM weekend.

Black Friday Cyber Monday saw 52 million global shoppers spend $7.5 billion dollars with brands powered by Shopify last year. Ahead of this year’s event, Shopify surveyed 2,000 consumers and 350 businesses across Australia to learn what will motivate consumers and drive business performance over the upcoming holiday shopping period.

The study, conducted by Sapio Research, found that three-quarters (76%) of Australians have cut back on spending in recent months. Yet the vast majority of those who are planning to shop during BFCM (63%) intend to spend the same or more this year compared to last. In fact, the number of people planning to spend more (27%) is twice that of those who are planning to spend less (13%).

“Consumers are looking to make high-quality purchases that bring a sense of happiness or well being this year,” said Shaun Broughton, APAC Managing Director at Shopify. “While Australians are concerned about the rising cost of living, 80% still value high quality products that last. Retailers who strike a balance between price and quality are best placed to maximise sales throughout BFCM and other peak shopping periods.”

The prospect of finding great deals is a strong motivator for consumers, with 70% saying they will shop over BFCM weekend to get more value for their money. Brand loyalty could take a back seat throughout the sales period, however, as 84% of consumers say they will  compare prices to try and find the best deals and discounts possible.

“Customers are certainly being shrewder when parting with their money,” said Kelly Lavery, CEO, Strucket. “It’s up to us as retailers to validate the customer’s purchase as a need rather than a want, ensure that their purchase will make a positive impact on their life, and make them feel confident they spent with the right business. Essentially they are looking for value and trust.”

“Aussies respect retailers that offer regular discounts. Shopify’s research mirrors our own data, which shows that nine in ten respondents view those retailers as ‘value for money’ – a brand perception that is particularly important in today’s cost of living crisis,” said Matthew Herbert, Co-Founder and Co-CEO of brand tracking platform, Tracksuit.

“Retailers looking to capitalise on BFCM this year should remember that it’s not just transactional. By aligning your brand with the highly anticipated sales periods, you demonstrate empathy and support. It’s an opportunity to deliver value for money to consumers while boosting sales, and fostering longer term brand loyalty and trust. It’s a win-win scenario where both consumers and retailers stand to benefit.”

The research also revealed that technology has become a core part of the shopping experience — and there’s value in embracing technology for retailers as well. Close to 1 in 4 holiday shoppers are more likely to buy from brands with technology-enabled shopping experiences (24%). Another quarter expect brands to embed technology into the shopping experience (24%), while 23% are more likely to spend money with brands that offer tech-enabled shopping experiences.

In addition, consumers are excited about the possibilities that AI will bring as they hunt for the best deals this shopping season. More than two-thirds (69%) of shoppers believe AI will make it easier to discover new brands and products, while three-quarters (74%) believe it will help them find deals or special offers.

Interestingly, it is the biggest spenders who are most likely to adopt the latest shopping technology. Consumers planning to spend over $850 this BFCM, are also the most likely to make use of virtual fitting room services or smart mirrors (32%), use virtual assistants (31%), shop for things like furniture using spacial commerce (30%), and over a third (36%) engage with QR codes or digital display screens while shopping. In addition, big spenders are twice as likely to purchase products with personalisation, such as name monogramming, as those who are planning to spend the least.

Key findings from Shopify’s latest research also reveal:

Despite cutting discretionary spending, consumers are willing to pay for a great deal

• Consumers are more intentional than ever as they look to make their money go further, with 53% planning to do the bulk of their holiday shopping during the BFCM weekend.
• While 48% of shoppers still value quality, 67% are open to switching brands based on cost savings.

Retailers are looking to tech to help manage peak sales season

• To meet the demand for technology-driven shopping, 72% of Australian retailers surveyed said they plan to increase their investment in tech to prepare for the holiday sales season.

Online and offline commerce channels are both important

• Preferences towards browsing in a shop vs browsing on an online store are almost evenly split (42% vs 41%) as the top way for Australian consumers to make new product discoveries.
• More shoppers are open to making purchases through social media platforms, with nearly 37% willing to purchase products directly on Facebook, 35% willing to buy through Instagram, 31% willing to buy via YouTube, and 26% willing to buy via TikTok. Only 16% were willing to buy from X.
• Surprisingly, 25-34 year olds are the highest adopters of social shopping behaviours with 48% being willing to purchase products on Facebook, compared to 30% of Gen Z shoppers. In addition, 25-34 year olds were more likely than 18-24 year olds to message brands on social media platforms for customer support (26% vs 24%).
• Almost a third (30%) of businesses think that, out of all the available selling surfaces, social media platforms will provide the highest volume of sales for them by the end of the decade.

The post 2/3 Consumers plan to spend big during BFCM weekend, despite inflation appeared first on Small Business Connections.

The annual growth, at 4.0 per cent, is the highest for the WPI since March quarter 2009.

What does this mean for SMEs?

The rising WPI is likely to have a number of implications for SMEs, including:

• Increased labor costs: SMEs will need to factor in the higher cost of labor when pricing their goods and services. This could put upward pressure on prices and potentially make it more difficult to compete with larger businesses.
• Skill shortages: The tight labor market is likely to make it more difficult for SMEs to find and retain skilled workers. This could lead to productivity losses and slower growth for SMEs.
• Wage bill inflation: The rising WPI will put upward pressure on SMEs’ wage bills. This could make it more difficult for SMEs to invest in other areas of their businesses, such as research and development or marketing.

What can SMEs do to manage the rising WPI?

There are a number of things that SMEs can do to manage the rising WPI, including:

• Reviewing their pricing strategies: SMEs should regularly review their pricing strategies to ensure that they are covering their costs and making a profit. They may need to increase prices in order to offset the higher cost of labor.
• Investing in productivity improvements: SMEs can invest in productivity improvements to help offset the higher cost of labor. This could involve investing in new technology, training employees, or implementing new processes.
• Focusing on employee retention: SMEs should focus on retaining their existing employees by offering competitive wages and benefits. They may also need to be more flexible with working hours and other conditions in order to attract and retain talent.

The rising WPI is a challenge for all businesses, but SMEs are particularly vulnerable. SMEs should take steps to manage the rising WPI in order to protect their profits and ensure their long-term viability.

Here are some additional tips for SMEs:

• Be aware of the WPI: SMEs should keep an eye on the WPI so that they can be prepared for future increases.
• Plan for the future: SMEs should factor the rising WPI into their business plans.
• Talk to their bank: SMEs should talk to their bank about their financial situation and see if there are any options available to help them manage the rising WPI.

The rising WPI is a challenge for SMEs, but it is not insurmountable. By taking steps to manage the rising WPI, SMEs can protect their profits and ensure their long-term success.

The post SMEs face rising labour costs as Wage Price Index hits record 26-year high appeared first on Small Business Connections.

The National Retail Association has today released its projections for the Christmas sales period, predicting that Australians will spend around $63 billion between now and the end of December.

However, National Retail Association Director Rob Godwin said the industry was expecting a generally flat sales period, with little-to-no growth compared with last year.

“We are predicting the industry as a whole will have around the same result as last year – probably in the area of $63 billion nationwide,” Mr Godwin said.

“We are already seeing around 40 per cent of retailers beginning the discounting cycle, in order to get consumers to open their wallets.

“As a result, it’s shaping up as very much a buyers’ Christmas, with great deals already available for those who get in early.”

Mr Godwin said the high point for the sector was the increasing popularity of the Black Friday/Cyber Monday sales event, which is expected to generate some $6.3 billion in sales.

“This grows in popularity every year, and is now challenging the traditional Boxing Day and post-Christmas sales period as Australia’s premier shopping event.

“We will see around 10 per cent of the entire festive season spend take place over those four days later this month.

“That’s good news for shoppers, but also for retail workers and business owners who rely on a strong pre-Christmas sales period to carry them through the quieter months of the following year.

“While we know people are tightening their belts at the moment, the good news is that there are bargains to be found out there. 2023 will definitely be a buyers’ Christmas.”

Projected Christmas season* sales 2023

* The Christmas sales period includes the last half of November and all of December

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