COVID-19 SMALL AND MEDIUM ENTERPRISE ... Research COVID...SMALL AND MEDIUM ENTERPRISE SENTIMENT...

COVID -19 SMALL AND MEDIUM ENTERPRISE

SENTIMENT TRACK ER

– W A V E 1 4 –

1 0 t h A u g u s t 2 0 2 0

ABOUT US

ACA Research & Fifth Quadrant have worked closely with TEG Insights on

business and consumer research projects for over a decade. Our strong partnership allowed us to collaborate

on this new tracker aiming at understanding the impact of COVID-19 on SMEs during these unprecedented

times.

Please do not hesitate to contact us should you have any questions!

T W O B R A N D S O P E R A T I N G U N D E R A S I N G L E M A N A G E M E N T

ACA Research is a full-service market research consultancy, with a strong focus

on B2B projects.

Our consultants provide strategic qualitative and quantitative research

solutions to support business decision making.

Fifth Quadrant is our specialist customer experience brand providing industry analysis, benchmarking, research and

consulting services.

Our consultants work on strategic and operational projects to help clients

optimise CX delivery and reduce cost to serve.

TEG Insights is committed to delivering quality data, analytics and online

research services with access to one of Australia’s largest and most responsive online research panels. Our wide reach

includes professionals, from small business owners to executives, across a

variety of industries.

Our continued success is based on integrity and passion to ensure the best

outcomes for both our Clients and Members alike.

CURRENT STATE

As in other countries all around the world, COVID-19 has had a significant impact on Australia’s economy, with travel bans, restrictions on outdoor

and indoor gatherings, and hence the forced closure of business across a

range of sectors. The tourism & hospitality sectors were the first to be

affected worldwide.

To support the economy, businesses and employees that have been severely impacted by the strict

measures & restrictions, the Australian State/ Territory & Federal

Governments have introduced a range of stimulus measures.

First case of COVID-19

reported in Australia

2 5 t h J a n

Australia closes its borders from

travellers coming directly from

China

1 s t F e b

First measures against mass gatherings

1 6 t h M a r

Closure of many hospitality and

personal services businesses

2 5 t h M a r

Federal Government’s

JobKeeper subsidy

announced

3 0 t h M a r

Launch of the SME Sentiment

Tracker

5 t h A p r

Federal Government’s rent relief for commercial

tenants announced

7 t h A p r

SME Sentiment Tracker updates

A p r i l - A u g

Source: https://www.worldometers.info/coronavirus/

NUMBER OF COVID-19 CASES IN

AUSTRALIA

WAVE 1 5/Apr

WAVE 2 12/Apr

WAVE 3 19/Apr

WAVE 4 26/Apr

WAVE 5 3/May

WAVE 610/May

WAVE 717/May

WAVE 8 24/May

WAVE 9 31/May

WAVE 10 7/June

WAVE 11 21/June

WAVE 12 5/July

WAVE 13 19/July

WAVE 14 2/Aug

TOTAL CASES 5,750 6,313 6,612 6,716 6,801 6,941 7,045 7,114 7,195 7,260 7,461 8,449 11,802 17, 923

DAILY NEW CASES

200 10 26 15 20 14 17 3 10 5 25 87 361 641

CURRENTLY INFECTED

4,633 2,916 2,311 1,258 889 674 580 504 479 455 463 946 3,407 7,295

https://www.worldometers.info/coronavirus/

METHODOLOGY

The COVID-19 Tracker was first launched w/e 5th April 2020.

In each wave we get minimum n=300 completed surveys.

TEG Insights ensures a consistent sample of financial decision makers and

influencers at Small and Medium Size Businesses each wave.

5-minute questionnaire All surveys completed online(TEG Insights Business Panel)

All respondents are financial decision makers/influencers in Small and Medium Businesses

with up to 500 employees

Respondents are from across Australia, including metro and

regional areas

A wide selection of industry sectors are represented, allowing

for deep dive analysis on a regular basis

Data is weighted by state and number of employees to reflect

the national distribution of businesses across the country

In summary, the second wave of COVID-19 in Victoria is pushing many SMEs to the limit. With confidence at all time lows and job losses increasing, the short-term prospects look bleak. Accordingly, the majority of SMEs will require ongoing support and therefore the extended JobKeeper program will continue to drain Government funds until at least March 2021.

It is also worrying that 30% of SMEs are now reporting less productivity from staff working from home. Consequently, business leaders need to provide appropriate guidelines, training, technology and support to ensure individuals have all the tools to contribute to company survival during these difficult times.

KEY LEARNINGS

With Melbourne entering Stage 4 restrictions and border closures reintroduced, it is no surprise that more than 70% of SMEs report declining revenue due to COVID-19. Short term expectations remain very weak with 42% of SMEs in Victoria now anticipating declining revenue over the next 4 weeks, as restrictions smother any revival.

The inability to contain the virus both globally and locally is also increasing the long-term impact on business investment and employment. Some very concerning data points include:

• Nearly 50% of SMEs in NSW have laid off at least 1 employee. • Only 14% of SMEs currently accessing JobKeeper will be ineligible to continue in October. • One quarter of SMEs have deferred loans, with the majority unable to restart repayments at the conclusion of their six-month

deferral agreement.• Only one third of SMEs now expect revenues to return to pre-COVID levels by the end of 2020.

Accordingly, the proportion of SMEs concerned about business survival has ticked up to a new high of 73%. Consequently, most SMEs support a COVID-19 insolvency regulation to protect businesses from bankruptcy until conditions and revenues recover.

While many organisations report positive working from home outcomes, a significant 30% of SMEs are concerned about lower productivity when their staff are working remotely. If not addressed this lack of productivity could easily lead to further job losses. Despite some negative experiences, nearly one quarter of all SMEs with staff working from home are looking to downsize their workplace footprint when their current lease expires. If this transpires, we will see many staff working remotely on an ongoing basis and rapidly rising vacancy rates in the commercial property sector throughout Australia.

71% report declining revenues due to COVID-19.

42% of SMEs in VIC expect revenues to decline over the next 4 weeks.

49% of SMEs in NSW have laid off at least one employee due to COVID-19.

Only 14% of SMEs currently accessing JobKeeper will be ineligible to continue in October.

C O N T E N T

H O W I S T H E C O V I D - 1 9 PA N D E M I C

I M PA C T I N G S M E s A C R O S S T H E

F O L L O W I N G A R E A S :

I M PA C T O F C O V I D - 1 9 O N R E V E N U E S1

S AT I S FA C T I O N W I T H S T I M U L U S & S U P P O R T M E A S U R E S3

I M PA C T O F C O V I D - 1 9 O N J O B S & I N V E S T M E N T2

W O R K I N G F R O M H O M E5

S U R V I V A L4

7

D E C L I N E I N R E V E N U E D U E T O C O V I D - 1 9

More than 70% of businesses report declining revenue due to COVID-19. Positive to note a slight decrease in the mean decline, now at 44% compared to 56% in April.

WHAT IMPACT HAS THE COVID-19 CRISIS HAD ON YOUR BUSINESS REVENUE?

7% 8% 8% 5% 9% 10% 8% 8% 7%

27% 23% 19% 22%25% 21% 24%

14% 21%

17% 20%20% 19%

19%16% 21%

21%21%

48% 48% 53% 53% 47% 53% 47%57% 50%

12th April 26th April 10th May 24th May 7th June 21st June 5th July 19th July 2nd August

30% or more decline inrevenue

Less than 30% decline inrevenue

No change in revenue

Increase in revenue

% SMEs reporting a decline in revenue

65% 68% 73% 72% 66% 69% 68%

Data collected before Stage 4 restrictions introduced in Melbourne, so negative downward trend expected to continue.

78%

Mean % Change in revenue (all SMEs)

-34% -35% -34% -32% -29% -29% -31% -33% -29%

Mean % Change in revenue (amongst those reporting a decline in revenue)

-56% -54% -50% -46% -48% -47% -49% -46% -44%

71%

8

D E C L I N E I N R E V E N U E D U E T O C O V I D - 1 9 B Y S T A T E

Interestingly, revenues in NSW and QLD continue to be more severely impacted than VIC.

WHAT IMPACT HAS THE COVID-19 CRISIS HAD ON YOUR BUSINESS REVENUE?(BY STATE, W/E 2nd AUGUST)

5%13% 9% 7% 4%

17%

18%17%

32%

17%

16%11%

28%

19%42%

62% 58%45% 42% 38%

NSW QLD VIC SA WA

30% or more decline inrevenue

Less than 30% decline inrevenue

No change in revenue

Increase in revenue

% SMEs reporting a decline in revenue

78% 69% 73% 61% 80%

Mean % Change in revenue (all SMEs)

-32% -25% -27% -22% -28%

Mean % Change in revenue (amongst those reporting a decline in revenue)

-46% -45% -43% -36% -40%

9

F U T U R E R E V E N U E E X P E C T A T I O N S

Short term expectations of recovery remain very weak as restrictions and border closures are reintroduced.

WHERE DO YOU EXPECT YOUR REVENUE TO BE IN 4 WEEKS’ TIME, COMPARED TO TODAY?

8% 7% 5% 9% 4% 10% 9%

21%

8% 11%9%

9%

19% 15%

48%

56%45% 46% 56%

51% 59%

20%23%

35% 33% 26%18%

16%

3% 5% 4% 4% 5% 3% 1%

10th May 24th May 7th June 21st June 5th July 19th July 2nd August

Significantly better

Slightly better

About the same

Slightly worse

Significantly worse

% Better 28%23% 39% 37% 31% 21% 17%

% Net score(Better - Worse)

-6% 13% 23% 19% 18% -8% -7%

10

F U T U R E R E V E N U E E X P E C T A T I O N S B Y S T A T E

42% of SMEs in VIC now anticipating declining revenue over the next 4 weeks, as restrictions smother any recovery.

WHERE DO YOU EXPECT YOUR REVENUE TO BE IN 4 WEEKS’ TIME, COMPARED TO TODAY?(BY STATE, W/E 2nd AUGUST)

5% 4% 3%11% 16%8% 10% 12%

17%

26%

54% 53%62%

56%

50%

34% 30% 15%14%

7%2% 8% 2%

WA QLD SA NSW VIC

Significantly better

Slightly better

About the same

Slightly worse

Significantly worse

% Better 34% 32% 23% 16% 7%

% Net score(Better - Worse)

21% 18% 8% -12% -35%

11

13% 8% 2% 8% 6% 4% 4%

18%6% 11% 7% 9% 15% 16%

55%

58% 51% 52% 59%62% 64%

10%17% 33% 28% 24% 18% 15%

4% 10% 3% 5% 3% 1% 1%

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

7% 3% 1% 10% 6% 9% 10%

24%

7% 3%11% 12% 8% 12%

54%

67% 75%60%

52% 47%54%

15% 20% 15% 19%28%

28%17%

1% 3% 5% 2% 8% 6%

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

F U T U R E R E V E N U E E X P E C T A T I O N S B Y I N D U S T RY

Short term revenue expectations are in a downward trend across all industry sectors.

26%5%

16% 12% 18% 22%

6%

11%3%

12%8%

7%11%

41%47%

32%

34% 41%45%

50%

26% 36%

57%

38% 35% 26%16%

2% 1% 7% 4% 4% 1%

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

HOSPITALITY

CONSTRUCTION

RETAIL

PRODUCTION

DISTRIBUTION

SERVICES

7% 8% 8% 13% 8% 8% 16%23%

6% 6%8% 9% 15%

17%

35%51% 49% 34% 44%

48%43%

31% 30% 34% 45% 33% 21% 22%3% 4% 2% 1% 6% 8% 2%

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

7% 5% 15% 7% 8%14% 12%

13%

13% 14%13% 8%

51% 53%48%

32% 38%50% 63%

25% 23%23%

46% 40%23%

17%3% 8% 1% 8% 8% 8% 5%

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

4% 2% 4% 4% 3% 5% 9%

27%14% 9% 10% 7%

15%27%

48%66%

45%58% 64%

58%50%

21% 17%

38% 19% 22% 22% 14%4% 9% 5%

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

WHERE DO YOU EXPECT YOUR REVENUE TO BE IN 4 WEEKS’ TIME, COMPARED TO TODAY?

% Net score

-4% 21% 61% 10% 19% 5% -16% 4% 20% 22% 25% 22% 6% -9% 7% 14% -4% 41% 34% 11% 6%

-10% 1% 29% 14% 17% 2% -22% -15% 13% 16% -2% 12% 19% 1% -17% 13% 23% 18% 12% 0% -4%

C O N T E N T








S U R V I V A L4

13

N E G A T I V E I M P A C T O F C O V I D - 1 9

Inability to contain the virus both globally and locally is increasing the long term impact on business investment and employment.

WHAT NEGATIVE IMPACT DO YOU THINK THE COVID-19 SITUATION WILL HAVE ON THE FOLLOWING?(W/E 2ND AUGUST)

3%

3%

16%

34%

1%

4%

14%

13%

9%

11%

32%

21%

88%

82%

37%

32%

Global economy

Australian economy

Your business spending/capitalinvestment

The number of staff you employ

No negative impact Short term impact (up to 6 months) Medium term impact (6-12 months) Long term impact (more than 12 months)

% Long term impact % Change from last

waveW/E 21st

JuneW/E 5th

JulyW/E 19th

July

77% 76% 77% +11%

66% 69% 73% +9%

29% 32% 33% +4%

18% 16% 25% +7%

14

P E R C E N T A G E C H A N G E I N T H E N U M B E R O F S T A F F B E F O R E T H E C R I S I S V S N O W

Despite the extension to JobKeeper we see a notable uplift in SMEs laying off staff in last 2 waves.

CHANGE IN NUMBER OF EMPLOYEES SINCE THE PANDEMIC

1% 1% 2% 2% 2% 4% 2% 2% 4%

64% 60%65% 65% 66% 58% 64%

57% 56%

14%15%

14% 11%16%

20%20%

20% 24%

21% 25% 19% 22% 16% 19% 14%21% 16%


50% or more decrease in thenumber of staff

Less than 50% decrease in thenumber of staff

No change in the number ofstaff

Increase in the number of staff

% of SMEs reporting a decrease in the number of staff

35% 40% 33% 33% 32% 39% 34%

However, it is somewhat positive to note a decline in proportion of employees being laid off.

41%

Mean % Change in staff (all SMEs)

-18% -21% -17% -17% -14% -14% -12% -18% -13%

Mean % Change in staff (amongst those reporting a decline in staff)

-51% -54% -54% -53% -48% -43% -40% -46% -39%

40%

15

P E R C E N T A G E C H A N G E I N T H E N U M B E R O F S T A F F B E F O R E T H E C R I S I S V S N O W

Very concerning that nearly 50% of SME’s in NSW report job losses. Very likely to see an increase in VIC during Stage 4 restrictions.

CHANGE IN NUMBER OF EMPLOYEES SINCE THE PANDEMIC(BY STATE, W/E 2nd AUGUST)

2% 4% 4% 5% 4%

49%54%

65% 66% 67%

28%23%

14% 15% 19%

21% 19% 17% 14% 9%

NSW VIC QLD SA WA

50% or more decreasein the number of staff

Less than 50% decreasein the number of staff

No change in thenumber of staff

Increase in the numberof staff

% of SMEs reporting a decrease in the number of staff

49% 42% 31% 29% 28%

Mean % Change in staff (all SMEs)

-18% -14% -6% -12% -7%

Mean % Change in staff (amongst those reporting a decline in staff)

-37% -41% -45% -46% -26%

16

J O B K E E P E R E X T E N S I O N

Positive response to the JobKeeper extension, but only 14% of businesses currently accessing the program will not meet the eligibility criteria in October.

Support from the Federal Government will need to continue for the majority of SMEs.

WHAT WILL YOU DO WHEN THE JOBKEEPER PAYMENTS ARE REDUCED TO $1,200 PER FORTNIGHT IN OCTOBER?

(Amongst those utilising JobKeeper)

54%

14%

14%

15%

Continue on JobKeeper program forall eligible staff

Continue on JobKeeper program forsome eligible staff but let others go

We won’t be eligible for the JobKeeper program in October

Don’t know/Not sure

WHAT DO YOU THINK ABOUT THE EXTENSION MADE TO THE JOBKEEPER PROGRAM ANNOUNCED BY THE FEDERAL GOVERNMENT LAST WEEK?

6%

9%

18%

47%

20%

2nd August

Very positive

Somewhat positive

Neutral

Somewhat negative

Very negative

% Total positive 67%

17

L O A N D E F E R R A L

One quarter of SMEs have deferred loans, with the majority unable to restart repayments at the conclusion of their six-month deferral agreement.

GOVERNMENT STIMULUS AND SUPPORT MEASURES TO BE USED BY THE BUSINESS: USING LOAN DEFERRAL

WHAT WILL YOU DO AT THE END OF YOUR LOAN DEFERRAL PERIOD? (Amongst those utilising Loan Deferral)

25%

2nd August

29%

28%

26%

17%

Ask for an extension (up to 4 monthsfor eligible customers)

Restructure loans to reducerepayments

Restart repayments in full

Don’t know/Not sure

18

A C Q U I S I T I O N O F A S S E T S

Despite investment plans being subdued, the intention to purchase IT equipment over the next 3 months continues the upward momentum.

WHICH OF THE FOLLOWING WILL YOU PURCHASE FOR YOUR BUSINESS OVER THE NEXT 3 MONTHS? (W/E 2nd AUGUST)

28%

64%

65%

73%

81%

80%

82%

87%

21%

21%

21%

16%

14%

15%

14%

9%

44%

15%

12%

9%

4%

4%

4%

3%

8%

1%

2%

3%

1…

2%

IT / Office equipment, including hardware &software

Other types of vehicles, equipment, machineryor plant

Passenger vehicle(s) including SUVs

Light commercial vehicle(s) including utes, vans,and minibuses

Truck(s) less than 4.5 tonnes that can beoperated with a car licence

Agricultural, construction or earthmovingvehicle(s)/equipment

Truck(s) more than 4.5 tonnes that require aheavy vehicle licence

Medium and large bus(es) with more than 12seats that require a bus driver licence

Definitely will not Probably will not Probably will Definitely will

% Total will % Change from last

waveW/E 5th

JulyW/E 19th

July

35% 44% +8%

19% 13% +3%

15% 13% +1%

16% 10% +2%

9% 9% -4%

11% 9% -3%

8% 8% -4%

9% 6% -3%

Investment in other plant, machinery and vehicles is likely to remain flat over the next 3 months.

C O N T E N T







S U R V I V A L4


20

S A T I S F A C T I O N W I T H T H E F E D E R A L G O V E R N M E N T ’ S R E S P O N S E

Despite ongoing COVID-19 outbreaks, support for the Federal government remains relatively steady.

HOW SATISFIED ARE YOU WITH THE WAY THE AUSTRALIAN FEDERAL GOVERNMENT HAS MANAGED THE COVID-19 CRISIS OVERALL SO FAR?

8% 4% 5% 5% 5% 4% 4% 4% 2%

13%11% 8% 9% 9% 13%

6%11% 13%

16%

15%14%

22% 17%18%

23%22% 24%

42% 53%

43%

41%40%

39% 46%47% 39%

21% 17%

31%24%

29% 25% 22%16%

22%


Extremely satisfied

Somewhat satisfied

Neutral

Somewhat dissatisfied

Extremely dissatisfied

% Total satisfied 63% 70% 74% 65% 69% 64% 68% 63% 61%

21

S A T I S F A C T I O N W I T H T H E F E D E R A L G O V E R N M E N T ’ S R E S P O N S E B Y S T A T E

Satisfaction for the Federal Government is relatively stable across all States.

% SATISFIED WITH THE GOVERNMENT’S MANAGEMENT OF THE COVID-19 CRISIS OVERALL SO FAR

NSW VIC

QLD WA SA

55%

73% 72%

59%63% 64% 64% 66%

61%

26%15% 15% 13% 15% 14% 12% 13% 18%

12thApril

26thApril

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

Total satisfied

Total dissatisfied

53%

68% 69%

58%

71%

55% 64%66% 66%

26%

14% 13%19%

7%21% 15% 11% 11%

12thApril

26thApril

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

66%57%

64%74%

67%62% 65% 62% 65%

16%23% 23%

4%14%

27%18%

13% 14%

12thApril

26thApril

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

74% 70%82% 84%

58%

75% 70% 69% 67%

11%19%

14% 10% 10% 17% 13% 6% 7%

12thApril

26thApril

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

69%79%

71%81%

61%

80% 75%68% 66%

15%10%

3% 4% 8% 4% 8% 9% 11%

12thApril

26thApril

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

22

S A T I S F A C T I O N W I T H T H E S T A T E G O V E R N M E N T ’ S R E S P O N S E

No surprise that support for the VIC Government is waning, but the NSW Government is also trending down.

WA

3% 2%3% 2%

10%5%

27%30%

56% 61%

19th July 2nd August

Extremelysatisfied

Somewhatsatisfied

Neutral

Somewhatdissatisfied

Extremelydissatisfied

NSW

8% 4%

10%13%

21% 24%

46% 40%

16% 19%


SA

3%4% 2%

17% 14%

23% 24%

56% 58%


VIC

13%19%

13%

19%

21%

19%

33%

30%

20%14%


QLD

2%8%

16%14%

58% 54%

24% 24%


HOW SATISFIED ARE YOU WITH THE WAY YOUR STATE GOVERNMENT HAS MANAGED THE COVID-19 CRISIS SO FAR?

% Total satisfied

83% 91% 91% 82% 82% 78% 62% 59% 53% 44%

23

S U P P O R T F R O M T H E B A N K S

Perceptions of the Banks has increased significantly over the past 2 weeks, with those using the loan deferral support program most positive.

65%69%

65%62%

66%62%

68%

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

% AWARE OF THE SUPPORT THAT BANKS ARE PROVIDING BUSINESS CUSTOMERS AFFECTED BY

THE COVID-19 CRISIS

PERCEPTIONS OF SUPPORT PROVIDED BY THE BANKS TO BUSINESS CUSTOMERS (AMONGST THOSE AWARE OF BANK SUPPORT)

3% 2% 5% 2% 5% 4% 5%10% 7%

11% 14% 6% 9% 4%

41% 41% 32% 29% 33% 36%28%

42% 43% 45%45% 49% 44%

46%

6% 6% 7% 10% 6% 8%17%

10thMay

24thMay

7thJune

21stJune

5thJuly

19thJuly

2ndAugust

Very positive

Somewhatpositive

Neutral

Somewhatnegative

Very negative

48% 49%% Positive 52% 55% 55% 52% 63%

3%

20%21%

19%

74%56%

3% 5%

Using loandeferral

Not usingloan deferral

77% 59%

24

S U P P O R T F R O M T H E B A N K S B Y B U S I N E S S S I Z E

Micro businesses with less than 5 employees are now more positive about Bank support.

3% 2% 3% 3% 5% 3% 2%10% 7% 6%

22% 14%7% 5%

41%40% 39%

31% 36% 45%33%

41% 44% 47% 35% 38% 41%46%

6% 9% 5% 9% 6% 4% 13%


Very positive

Somewhat positive

Neutral

Somewhat negative

Very negative3% 4% 1% 5% 7%14% 9% 9%

5% 6% 8% 6%

35% 34% 28%29% 26%

24% 32%

43% 47%47% 56% 58% 54% 43%

8% 7% 13% 9% 9% 9% 11%


Very positive

Somewhat positive

Neutral

Somewhat negative

Very negative

6% 2% 2% 2% 3% 2% 1%4% 10% 11% 10% 10% 12% 12%

20%26%

38%24% 29% 30% 29%

68% 49%40%

42%43% 43% 43%

3% 13% 9%23% 16% 13% 16%


Very positive

Somewhat positive

Neutral

Somewhat negative

Very negative 4% 1% 5% 1%4% 6% 2% 3% 7%

28% 33% 18%11% 12% 14%

20%

54% 54%61%

60% 66%71%

66%

12% 8% 10%26% 21% 12% 6%


Very positive

Somewhat positive

Neutral

Somewhat negative

Very negative

PERCEPTIONS OF SUPPORT PROVIDED BY THE BANKS TO BUSINESS CUSTOMERS (AMONGST THOSE AWARE OF BANK SUPPORT, BY BUSINESS SIZE)

< 5 EMPLOYEES 5 TO 19 EMPLOYEES

20 TO 99 EMPLOYEES 100 TO 500 EMPLOYEES

C O N T E N T






S U R V I V A L4



26

51%

45%

53%49%

40%

29%32%

59%

51%

62%

54%

46%

37%34%

82%77%

88%85%

83%

75% 74%


By Oct 2020 By end of 2020 By end of 2021

R E V E N U E R E T U R N I N G T O P R E - C O V I D L E V E L S

Only one third of SMEs now expect revenues to return to pre-COVID levels by the end of 2020.

It is concerning that 26% of SMEs are not sure if their revenues will have rebounded by the end of 2021.

WHEN DO YOU BELIEVE YOUR BUSINESS REVENUE WILL RETURN TO PRE-COVID-19 LEVELS?

27

L E V E L O F C O N C E R N A B O U T B U S I N E S S S U R V I VA L

Accordingly, the proportion of SMEs concerned about business survival has ticked up to a new high.

HOW CONCERNED ARE YOU ABOUT THE SURVIVAL OF YOUR BUSINESS DUE TO THE COVID-19 CRISIS?

7% 9% 10% 8% 11% 9%14%

7% 5%

23% 22%28%

22%

32%

22%24%

20% 22%

29%38%

36%42%

30%

39% 27%36% 38%

41%32%

26% 28% 27% 30%35% 36% 35%


Very concerned

Quite concerned

Not that concerned

Not at all concerned

% Total concerned 70% 70% 62% 70% 57% 69% 62% 72% 73%

28

74%

80% 78% 79%

21st June 5th July 19th July 2nd August

C O V I D - 1 9 I N S O L V E N C Y R E G U L A T I O N

Consequently, SMEs support a COVID-19 insolvency regulation to protect businesses from bankruptcy until conditions and revenues recover.

WOULD LIKE TO SEE THE INTRODUCTION OF A COVID-19 INSOLVENCY REGULATION

(EXCLUDES DON’T KNOW)

WOULD YOU LIKE TO SEE THE INTRODUCTION OF A COVID-19 INSOLVENCY REGULATION TO PROTECT YOUR BUSINESS FROM BANKRUPTCY UNTIL BUSINESS CONDITIONS AND REVENUES RECOVER?

BY BUSINESS SIZE

BY INDUSTRY

89%

68% 67%81%

90%

64%

89%

72% 70%

90% 90%

68%

91%80% 77% 81% 83%

74%91% 88%

84% 79% 78% 73%

Hospitality Distribution Construction Production Retail Services


64%

81% 76%85%

71%82% 81% 81%

71%

88% 87%78%72%

85% 86%79%

<5 Employees 5-19 Employees 20-99 Employees 100-500 Employees


29

L E V E L O F C O N C E R N A B O U T P E R S O N A L W E L L B E I N G

In line with concerns about business survival and ongoing outbreaks, decision makers have heightened levels of concern about their health and wellbeing.

3% 7%15% 11% 7% 7% 10%

4% 5%

32% 27%

40%

33%34% 36%

40%

26% 28%

38%47%

35%

38% 44% 41%36%

49% 46%

26%18%

10%18% 16% 15% 14%

20% 21%


Very concerned

Quite concerned

Not that concerned

Not at all concerned

% Total concerned 64% 65% 45%

HOW CONCERNED ARE YOU FOR YOUR OWN HEALTH & WELLBEING DURING THIS CRISIS?

56% 60% 56% 50% 69% 67%

30

36%

45%

73%

74%

84%

84%

64%

55%

27%

26%

16%

16%

Join a meeting with your colleagues in person

Join a meeting with your clients and/ or suppliers inperson

Allow your employees to travel interstate forbusiness if there were no travel restrictions

Fly interstate for business if there were no travelrestrictions

Fly overseas yourself for business if there were notravel restrictions

Allow your employees to travel overseas for businessif there were no travel restrictions

No Yes

B U S I N E S S C H A L L E N G E S

Consequently, SME decision makers are now much less comfortable taking face to face meetings or travelling for business if borders were open.

WOULD YOU BE COMFORTABLE DOING THE FOLLOWING ACTIVITIES IN THE CURRENT ENVIRONMENT?

(W/E 2nd AUGUST) % Yes % Change

from last wave

W/E 7TH

JuneW/E 21st

JuneW/E 5th

JulyW/E 19th

July

74% 80% 80% 75% -11%

72% 78% 73% 72% -17%

54% 54% 54% 40% -13%

53% 59% 57% 38% -7%

22% 25% 33% 21% -5%

18% 23% 34% 21% -5%

C O N T E N T








S U R V I V A L4

32

W O R K I N G F R O M H O M E

Less than 50% of businesses expect their employees to be back in the workplace before October.

WHEN WILL THE MAJORITY OF YOUR STAFF BE BACK IN THE OFFICE/WORKPLACE?(AMONGST THOSE WHO EMPLOY STAFF)

NSW VIC QLD WA SA

41% 50% 46% 68% 56%

8% 1% 9% 13% 32%

19% 17% 15% 6% 2%

28% 31% 20% 13% 11%

Base n= 101 69 40 27 15

87%

0%

0%

13%

83%

0%

0%

17%

64%

8%

10%

16%

48%

12%

11%

28%

48%

8%

15%

25%

Before October

October - December2020

2021

Don’t know/ too hard to predict

7th June 21st June 5th July 19th July 2nd August

33

P R O D U C T I V I T Y O F T E A M M E M B E R S W O R K I N G F R O M H O M E

Concerning to report that 30% of SMEs report lower productivity from staff working from home, increasing to 38% in businesses with 5-19 employees.

Businesses need to help staff and managers drive greater productivity through better training and technology.

HOW WOULD YOU RATE THE PRODUCTIVITY OF YOUR TEAM MEMBERS WHEN WORKING FROM HOME COMPARED TO AT THE

OFFICE/WORKPLACE?(AMONGST THOSE WHO EMPLOY STAFF)

< 5 EMPLOYEES 5 TO 19 EMPLOYEES

20 TO 99 EMPLOYEES 100 TO 500 EMPLOYEES

6% 6%

23% 24%

46% 48%

13% 11%

12% 11%


Much better

Slightly better

About the same

Slightly worse

Much worse

4% 5%14% 15%

53% 56%

8%10%

20% 14%


7% 7%

29% 31%

44% 41%

14% 12%

6% 10%


5% 6%

31% 30%

32% 33%

21% 20%

11% 11%


4% 4%

31% 27%

26% 34%

27% 19%

11% 16%


34

I M P A C T O F W O R K I N G F R O M H O M E O N B U S I N E S S P R E M I S E S

And nearly one quarter of SMEs believe they will reduce the size of their business premises, based on the experience of staff working from home during the pandemic.

BASED ON YOUR EXPERIENCE WITH EMPLOYEES WORKING FROM HOME DURING THE PANDEMIC, DO YOU EXPECT TO

REDUCE THE SIZE OF YOUR BUSINESS PREMISES WHEN YOUR CURRENT LEASE EXPIRES?

(Amongst those with employees who can work from home)

46%

30%

23%

2nd August

Yes

Not sure/ Don’t know

No

61%

8%

18%

Better

About the same

Worse

PRODUCTIVITY OF TEAM MEMBERS WORKING FROM HOME? (Amongst those who expect to reduce the size of their

business premises)

SMEs who report a positive experience with staff WFH are more likely to reduce their workplace footprint.

C O N T E N T

A P P E N D I X :

M E T H O D O L O G Y & S A M P L E

A B O U T A C A R E S E A R C H & F I F T H Q U A D R A N T

1

2

METHODOLOGY

The COVID-19 Tracker was first launched w/e 5th April 2020.

In each wave we get minimum n=300 completed surveys.

TEG Insights ensures a consistent sample of financial decision makers and

influencers at Small and Medium Size Businesses each wave.

5-minute questionnaire All surveys completed online(TEG Insights Business Panel)

All respondents are financial decision makers/influencers in Small and Medium Businesses

with up to 500 employees

Respondents are from across Australia, including metro and

regional areas

A wide selection of industry sectors are represented, allowing

for deep dive analysis on a regular basis

Data is weighted by state and number of employees to reflect

the national distribution of businesses across the country

37

9%

5%

5%

5%

3%

2%

12%

5%

8%

7%

7%

3%

1%

5%

4%

2%

10%

8%

Professional, Scientific & Technical Services

Administrative & Support Services

Information, Media & Telecommunications

Financial & Insurance Services

Rental, Hiring & Real Estate

Other services

Retail Trade

Arts & Recreation Services

Education & Training

Healthcare & Social Assistance

Manufacturing

Agriculture, Forestry & Fishing

Mining

Transport, Postal & Warehousing

Wholesale Trade

Electricity, Gas, Water & Waste Services

Construction

Accommodation & Food

O U R S A M P L E

We targeted SMEs across all sizes and industry sectors.

Data was weighted by size to reflect the distribution by the number of employees.

SIZE OF BUSINESS: EMPLOYEES INDUSTRY SECTOR

36%

22%

15%

9%

18%

Less than 5 employees

5-19 employees

20-49 employees

50-99 employees

100- 500 employees

22%

22%

24%

24%

9%

Less than $100k

$100k to $500k

$500k to $2M

$2M to $20M

$20M or more

SIZE OF BUSINESS: TURNOVER

17% RETAIL TRADE

28% SERVICES

8% HOSPITALITY

14% HEALTH & EDUCATION

12% PRODUCTION

11% DISTRIBUTION

NOTE: CHARTS SHOW UNWEIGHTED DATA

10% CONSTRUCTION

38

O U R S A M P L E

Key decision makers and influencers at SMEs across all states and territories responded to the survey, including metro and regional areas.

Data was also weighted by state to reflect the distribution of SMEs across the country.

HEAD OFFICE LOCATION POSITION IN BUSINESS

50%

17%

16%

12%

6%

Business Owner/ Partner

CFO/ Financial Controller

CEO/ Managing Director

Other Manager/ Executive

Other (e.g. admin)

QLD15%

WA10%

SA/NT9%

NSW/ACT36%

VIC/TAS30%

19%

81%

METRO

REGIONAL

NOTE: CHARTS SHOW UNWEIGHTED DATA

C O N T E N T

A P P E N D I X :

M E T H O D O L O G Y & S A M P L E

A B O U T A C A R E S E A R C H & F I F T H Q U A D R A N T

1

2

O U R P R O M I S E T O C L I E N T S

Providing meaningful insight to allow you to make informed business decisions that drive

growth, competitive advantage and productivity

W E H E L P O U R C L I E N T S M A K E I N F O R M E D

B U S I N E S S D E C I S I O N S

T O E X E C U T E C U S T O M I S E D R E S E A R C H

A N D C O N S U L T I N G P R O G R A M S

B Y L E V E R A G I N G O U R S P E C I A L I S T

C A P A B I L I T I E S

T O D E L I V E R A C T I O N A B L E

R E C O M M E N D A T I O N S A N D A D V I C E

Leveraging our deep industry expertise and customer

experience specialisation to drive better outcomes for your business,

customers, employees, business partners, shareholders and the

community

Working in partnership with you to design and deliver research & consulting programs aligned to

your individual needs

Helping you achieve your goals by delivering pragmatic, actionable recommendations and strategic

advice

O U R R E S E A R C H F R A M E W O R K

W e d e l i v e r i n s i g h t s t h r o u g h o u t t h e c u s t o m e r j o u r n e y e n a b l i n g y o u t o …

T H A N K Y O U !

F O R F U R T H E R I N F O R M A T I O N , P L E A S E C O N T A C T :

J A M E S O R G A N , M A N A G I N G D I R E C T O RA C A R E S E A R C H & F I F T H Q U A D R A N T

E : j o r g a n @ a c a r e s e a r c h . c o m . a u

L I S A S A L A S , H E A D O F C O M M E R C I A LT E G I N S I G H T S

E : l i s a . s a l a s @ t e g i n s i g h t s . c o m

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