39
COVID-19 SMALL AND MEDIUM ENTERPRISE SENTIMENT TRACKER – WAVE 12 – 14th July 2020
COVID -19 SMALL AND MEDIUM ENTERPRISE
SENTIMENT TRACK ER
– W A V E 1 2 –
1 4 t h J u l y 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 - J u l y
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
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
DAILY NEW CASES
200 10 26 15 20 14 17 3 10 5 25 87
CURRENTLY INFECTED
4,633 2,916 2,311 1,258 889 674 580 504 479 455 463 946
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 data reported this week is very weak yet again. The speed of recovery is slowing, and expectations of improving revenues is waning. Confidence is fragile as the new outbreak in VIC threatens to spread and once again have a catastrophic impact on the economy.
Concern about business survival is on the rise, as is the level of anxiety associated with the lack of clarity regarding stimulus and support beyond September. The impending Federal Government announcements later in July will be critical in providing the SME community a level of reassurance required to endure this ongoing battle for survival.
KEY LEARNINGS As the so-called economic cliff draws closer, the sentiment amongst SMEs continues to deteriorate. Only 40% now expect revenues to return to pre-COVID levels by October, a fall from 53%, four weeks earlier.
Accordingly, 80% of SMEs support the introduction of a COVID-19 insolvency regulation to protect businesses from bankruptcy until business conditions and revenues recover.
Despite 37% of SMEs reporting higher revenues in June, 68% are still trading below pre-COVID revenues including 47% with declines of more than 30%.
Consequently, the demand for Government stimulus and support measures to be extended until 2021 is increasing. 81% of SMEs now believe JobKeeper needs to continue. Underpinning this data, 48% of SMEs claim they are likely to reduce employee numbers if no extension to JobKeeper is forthcoming.
Weak data across hospitality, distribution, retail and services suggest a broad-based extension of the stimulus measures will be required to avoid significant job losses and bankruptcies.
While satisfaction with the Federal Government remains steady, the proportion of SMEs who are extremely satisfied continues to decline, suggesting support is waning as the spike in new cases continues and the lack of clarity regarding future stimulus continues to increase levels of concern regarding business survival.
68% report declining revenues due to COVID-19
Only 40% expect revenues to return to pre COVID-19 levels by October compared to 53%, four weeks earlier
81% believe JobKeeper should be extended until 2021
48% likely to reduce employee numbers if JobKeeper is not extended
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 :
B U S I N E S S R E V E N U E1
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 S2
B U S I N E S S C O N F I D E N C E3
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
Still no reversal in declines with 68% of SMEs reporting lower revenues due to COVID-19.
WHAT IMPACT HAS THE COVID-19 CRISIS HAD ON YOUR BUSINESS REVENUE?
8% 7% 7% 8% 9% 8% 7% 5% 7% 9% 10% 8%
28% 27%19%
23% 22%19% 21% 22%
24% 25% 21% 24%
18% 17%
18%
20%15% 20% 21% 19%
21% 19%16%
21%
47% 48%56%
48%54% 53% 52% 53%
48% 47%53%
47%
5th April 12th April 19th April 26th April 3rd May 10th May 17th May 24th May 31st May 7th June 21st June 5th July
30% or more decline inrevenue
Less than 30% decline inrevenue
No change in revenue
Increase in revenue
% SMEs reporting a decline in revenue
65% 65% 74% 68% 69% 73% 73% 72% 69% 66% 69% 68%
Short term recovery looking unlikely with no reversal in the revenue trend.
8
C U R R E N T R E V E N U E C O M P A R E D T O P E R E V I O U S M O N T H S ’ R E V E N U E
It is positive to report that 37% of SMEs enjoyed higher revenues in June, than in May.
HOW DOES YOUR REVENUE COMPARE?
21%12%
13%
13%
41%
39%
17%
28%
8% 9%
May compared to Aprilw/e 7th June
June compared to Mayw/e 5th July
Significantly higher
Slightly higher
About the same
Slightly lower
Significantly lower
22% 15%
12%12%
49%42%
11%23%
6% 8%
INDUSTRY
BUSINESS SIZE
< 5 Employees 5-19 Employees 20-99 Employees 100-500 Employees
May revenue
June revenue
22%6%
12%
13%
31%36%
25% 36%
10% 9%
May revenue
June revenue
12% 5%
23%17%
33%
31%
20%37%
11% 10%
May revenue
June revenue
18% 14%
17% 22%
33% 22%
25%26%
7% 16%
May revenue
June revenue
Construction Services Retail Distribution Hospitality Production
23%4%
8%
18%
30%30%
26% 48%
13%
May revenue
23% 13%
15%16%
29% 37%
23% 34%10%
31%15%
12%
8%
32%
30%
18%
23%
7%24%
21%1%
13%
19%
41%51%
13% 24%13% 6%
11% 8%12%
79%42%
8%
25%
2%13%
10% 14%
31%10%
52%
46%
1%24%
6% 6%
June revenue
May revenue
June revenue
May revenue
June revenue
May revenue
June revenue
May revenue
June revenue
May revenue
June revenue
The incremental shift remains relatively low as only 9% reported significantly higher revenues month on month.
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
Despite, higher revenues reported in June the outlook for the short term continues to trend down with only 31% expecting better revenues in 4 weeks’ time.
WHERE DO YOU EXPECT YOUR REVENUE TO BE IN 4 WEEKS’ TIME, COMPARED TO TODAY?
12% 8%3% 7% 4% 5% 9% 4%
16% 21%
10%8%
5%11%
9%9%
50% 48%
57% 56%
53% 45%46% 56%
21% 20%25% 23%
33% 35% 33%26%
1% 3% 5% 5% 5% 4% 4% 5%
3rd May 10th May 17th May 24th May 31st May 7th June 21st June 5th July
Significantly better
Slightly better
About the same
Slightly worse
Significantly worse
% Better 28%30%23%22% 38% 39% 37% 31%
10
13% 13% 8% 8% 7% 2% 8% 6%
17% 18%12% 6% 8% 11% 7% 9%
58% 55%55% 58% 58%
51% 52% 59%
13% 10%14% 17% 23% 33% 28% 24%
4% 11% 10% 4% 3% 5% 3%
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
8% 7% 5% 3% 1% 10% 6%5%
24% 27%7%
1% 3%11% 12%
63%
54% 53%
67% 85% 75%60%
52%
22% 15% 13% 20%11%
15% 19%28%
1% 1% 2% 3% 3% 5% 2%
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
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
Expectations for increasing revenues in the short term are trending down across most industry segments.
47%26%
2% 5% 5%16% 12%
2%
6%
5% 11% 13%3%
12%8%
31%
41%
51%47%
32%
32%
34%41%
20%26%
39% 36%42%
57%
38% 35%
2% 2% 1% 8% 7% 4%
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
HOSPITALITY
CONSTRUCTION
RETAIL
PRODUCTION
DISTRIBUTION
SERVICES
5% 7% 9% 8% 8% 8% 13% 8%12%
23% 21%6% 3% 6%
8% 9%
42%35% 38%
51% 57% 49% 34% 44%
37% 31% 29% 30% 28% 34% 45% 33%
5% 3% 4% 4% 3% 2% 1% 6%
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
14% 7% 1% 5% 12% 15%
25%
14%11% 12%
9% 13%
13% 14%
39%51% 65% 53% 43%
48%
32% 38%
17% 25% 21%23% 30%
23%
46% 40%
6% 3% 3% 8% 5% 1% 8% 8%
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
5% 4% 1% 2% 6% 4% 4% 3%
32% 27%17% 14% 8% 9% 10% 7%
56%48%
51%66%
53%45%
58% 64%
7%21% 30%
17%28%
38% 19% 22%4% 4% 9% 5%
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
WHERE DO YOU EXPECT YOUR REVENUE TO BE IN 4 WEEKS’ TIME, COMPARED TO TODAY?
11
51% 52%
45%
51%53%
49%
40%
10th May 17th May 24th May 31st May 7th June 21st June 5th July
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
In line with other data, the proportion of businesses expecting revenues to return to pre-COVID levels by October has decreased significantly to 40%, from highs of 53%, only 4 weeks earlier.
Extended stimulus and support measures will be required for the majority of businesses expecting lower revenues for the medium to long term.
% BELIEVE THEIR BUSINESS REVENUE WILL RETURN TO PRE-COVID-19 LEVELS BY OCTOBER 2020
12
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
Continued upward trend in the proportion of SMEs not expecting revenues to recover until the second half of 2021.
WHEN DO YOU BELIEVE YOUR BUSINESS REVENUE WILL RETURN TO PRE-COVID-19 LEVELS?
28%
8%
15%
8%
20%
3% 2% 1%
15%
29%
7%
16%
10%
17%
7%4%
0%
11%
29%
3%
13%
6%
19%
8%5%
1%
16%
33%
7%
11% 10%
23%
4%2% 2%
9%
34%
7%
11%9%
21%
5%2% 2%
8%
32%
4%
13%
5%
24%
7%
3% 2%
9%
32%
1%
8%6%
24%
12%
4%2%
12%
10th May 17th May 24th May 31st May 7th June 21st June 5th July
R e v e n u e a t P r e - C O V I D
l e v e l s
T o o h a r d t o p r e d i c t
J u l y / A u g2 0 2 0
S e p / O c t 2 0 2 0
N o v / D e c 2 0 2 0
F i r s t h a l f o f 2 0 2 1
( J a n - J u n e )
S e c o n d h a l f o f
2 0 2 1 ( J u l y - D e c )
2 0 2 2 o r l a t e r
N e v e r
4 0 % p r e d i c t b u s i n e s s a s u s u a l b y
O c t o b e r
13
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
Weak data across hospitality, distribution, retail and services suggests a broad-based extension of the stimulus measures will be required.
44% 48%37%
31%36% 40%
32%
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
HOSPITALITY
CONSTRUCTION
52%45% 44%
52%59%
52% 55%
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
RETAIL
PRODUCTION
52%43%
30% 31%40% 41% 40%
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
32%
54%64% 62% 64%
78%
60%
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
DISTRIBUTION
SERVICES
73% 71%66%
53% 52% 51%
37%
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
54% 54%48% 48%
55% 51%44%
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
% BELIEVE BUSINESS REVENUE WILL RETURN TO PRE-COVID-19 LEVELS BY OCTOBER 2020
14
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
Increasing number of SME decision makers would like to see the introduction of bankruptcy protection until business conditions and revenues recover.
WOULD LIKE TO SEE THE INTRODUCTION OF A COVID-19 INSOLVENCY REGULATION
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
90%81%
89%
68% 67% 64%
90% 90% 89%
72% 70% 68%
Retail Production Hospitality Distribution Construction Services
21st June 5th July
64%
81% 76%85%
71%82% 81% 81%
<5 Employees 5-19 Employees 20-99 Employees 100-500 Employees
21st June 5th July
74%
80%
21st June 5th July
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 :
B U S I N E S S R E V E N U E1
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 S2
B U S I N E S S C O N F I D E N C E3
16
S A T I S F A C T I O N W I T H T H E G O V E R N M E N T ’ S R E S P O N S E
Satisfaction with the Federal Government remains steady, but it is notable that the proportion of SMEs who are extremely satisfied is declining.
HOW SATISFIED ARE YOU WITH THE WAY THE AUSTRALIAN FEDERAL GOVERNMENT HAS MANAGED THE COVID-19 CRISIS OVERALL SO FAR?
8% 8% 6% 4% 6% 5% 4% 5% 3% 5% 4% 4%
13% 13%11% 11%
13%8% 8% 9%
7%9% 13%
6%
21% 16%15% 15%
15%
14%24% 22% 29% 17%
18%23%
38% 42%
38%53% 42%
43%
45% 41%42%
40%39% 46%
21% 21%29%
17%25%
31%20% 24% 20%
29% 25% 22%
5th April 12th April 19th April 26th April 3rd May 10th May 17th May 24th May 31st May 7th June 21st June 5th July
Extremely satisfied
Somewhat satisfied
Neutral
Somewhat dissatisfied
Extremely dissatisfied
% Total satisfied 59% 63% 67% 70% 67% 74% 65% 65% 62% 69% 64% 68%
17
S A T I S F A C T I O N W I T H T H E G O V E R N M E N T ’ S R E S P O N S E
The spike in cases in VIC does not seem to have impacted satisfaction with the Federal Government.
% SATISFIED WITH THE GOVERNMENT’S MANAGEMENT OF THE COVID-19 CRISIS OVERALL SO FAR
NSW VIC
QLD WA SA
52% 55%64%
73% 73% 72%67%
59% 59% 63% 64% 64%
27% 26%21%
15% 16% 15%9% 13% 14% 15% 14% 12%
5thApril
12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
Total satisfied
Total dissatisfied
46%53%
63%68% 67% 69% 66%
58%66%
71%
55%64%
24% 26% 24%14% 15% 13% 15% 19%
10% 7%
21%15%
5thApril
12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
66% 66% 63%57% 56%
64%
76% 74%65% 67%
62% 65%
16% 16% 18%23%
29%23%
11% 4% 10% 14%27%
18%
5thApril
12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
84%74% 72% 70% 69%
82% 85% 84%
70%
58%
75%70%
8% 11% 12%19% 21%
14% 10% 10% 11% 10%17% 13%
5thApril
12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
61%69%
77% 79% 80%71% 70%
81%
67%61%
80%75%
22%15% 12% 10%
4% 3% 6% 4% 5% 8% 4% 8%
5thApril
12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
Satisfaction in QLD is back on the rise as borders reopen.
18
S A T I S F A C T I O N W I T H T H E C O L L A B O R A T I O N O F G O V E R N M E N T S
Satisfaction with the collaboration between the State and Federal Governments is showing signs of improvement in the first week of July following the continuous decline throughout June.
% Satisfied
HOW SATISFIED ARE YOU WITH THE COLLABORATION BETWEEN THE AUSTRALIAN FEDERAL GOVERNMENT AND YOUR STATE GOVERNMENT WHEN IT COMES TO MANAGING THE COVID-19 CRISIS?
5% 6% 5% 5% 8% 4% 4% 7% 5% 8% 6% 4%
11% 10% 14% 11%13%
14%8%
12%11%
13% 14% 13%
27%18% 16% 19%
19%17% 28%
26%25%
21% 28%28%
37%44% 42% 44%
40%44%
47% 39% 44% 40% 35% 39%
20% 22% 22% 21% 20% 21%14% 16% 15% 17% 17% 16%
5th April 12th April 19th April 26th April 3rd May 10th May 17th May 24th May 31st May 7th June 21st June 5th July
Extremely satisfied
Somewhat satisfied
Neutral
Somewhat dissatisfied
Extremely dissatisfied
57% 66% 64% 65% 60% 65% 61% 55% 59% 57% 52% 55%
19
S A T I S F A C T I O N W I T H T H E C O L L A B O R A T I O N O F G O V E R N M E N T S
Satisfaction regarding State and Federal collaboration has increased in VIC. It will be interesting to track these results now that new lockdown measures have been implemented.
% SATISFIED WITH FEDERAL & STATE GOVERNMENT COLLABORATION
NSW VIC
QLD WA SA
58% 61% 64% 65% 67% 64%54%
48% 52%62% 59%
23% 24%19% 17% 19%
13% 14%18% 22%
16% 13%12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
Total satisfied
Total dissatisfied
64% 67% 68%61%
54% 51% 50%59% 56%
40%
53%
14% 16% 14% 15% 19% 21% 25% 21% 18%30%
19%
12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
57% 57% 53% 50% 54%
65% 62%56%
60%
39%46%
13% 17%27%
31%25%
11% 12%18% 20% 22%
31%
12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
71% 67% 63%73%
81% 79%74%
80% 77%
56%
71%
14% 16% 14%4% 7% 9% 11% 12% 12%
23%
3%
12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
67%77%
82%77% 77% 80% 80% 78%
72% 72%
60%
12% 8% 8%14% 12%
6% 2%8%
13%5% 8%
12thApril
19thApril
26thApril
3rdMay
10thMay
17thMay
24thMay
31stMay
7thJune
21stJune
5thJuly
Dissatisfaction regarding State and Federal collaboration in QLD continues to increase despite the reopening of borders.
20
G O V E R N M E N T S T I M U L U S & S U P P O R T M E A S U R E S
The proportion of SMEs supporting an extension to Government stimulus measures continues to rise.
81% of SMEs now believe the JobKeeper stimulus should be extended until 2021.
DO YOU THINK THE FOLLOWING GOVERNMENT STIMULUS AND SUPPORT MEASURES SHOULD BE EXTENDED UNTIL 2021?
(W/E 5th JULY)
19%
19%
22%
24%
24%
24%
48%
38%
29%
34%
33%
29%
33%
43%
49%
43%
44%
46%
$1,500 JobKeeper payment
Wage subsidy (50% of an apprentice’s or trainee’s wage)
Accelerated depreciation deductions
Commercial Rent Relief
Tax-free cash flow support between$20,000 and $100,000
Instant asset write-off
No Yes, but with stricter/ revised eligibility criteria Yes, for all currently eligible businessesW/E 21st
July % Yes% Change
76% +5%
77% +4%
74% +4%
73% +3%
72% +4%
69% +7%
81%
81%
78%
76%
76%
76%
21
S T A F F R E D U N D A N C I E S W H E N J O B K E E P E R E N D S
48% of SMEs are likely to make staff redundant if the JobKeeper payments are not extended.
SMEs in the distribution and construction sectors are most likely to make staff redundant if the JobKeeper program ends in September.
DO YOU THINK YOU WILL NEED TO MAKE ANY STAFF REDUNDANT IF THE JOBKEEPER PAYMENTS ARE NOT
EXTENDED?
12%
20%
20%
34%
14%
5th July
Definitely will
Probably will
Probably will not
Definitely will not
Not sure/too early to predict
8% 16% 10% 17%
37%9%
3%
25%
16%24% 13%
16%
48%44%
40%
15% 12% 19%31%
< 5 Employees 5-19 Employees 20-99 Employees 100-500 Employees
INDUSTRY
BUSINESS SIZE
4% 6% 10% 12% 9%19%
24%6%
27% 27% 36% 7%2% 31%
12% 12%13%
64%54%
57%29% 35% 19%
5%16% 22% 14% 23%5%
Distribution Construction Hospitality Services Retail Production
22
G O V E R N M E N T S T I M U L U S & S U P P O R T M E A S U R E S
The Instant Asset Write-Off continues to stimulate spending, particularly amongst larger SMEs.
GOVERNMENT STIMULUS AND SUPPORT MEASURES TO BE USED BY THE BUSINESS: INSTANT ASSET WRITE-OFF
49% 46% 47% 45% 42%49%
30%26%
30%26%
22%
22%
21%28%
22%29%
35%29%
26thApril
10thMay
24thMay
7thJune
21stJune
5thJuly
Will utilise
Not sure
Will notutilise
< 5 EMPLOYEES 5 TO 19 EMPLOYEES
20 TO 99 EMPLOYEES 100 TO 500 EMPLOYEES
55% 55% 51% 49%61% 61%
31% 24% 34%27%
20% 20%
13% 20% 15% 24% 20% 19%
26thApril
10thMay
24thMay
7thJune
21stJune
5thJuly
40% 39% 30% 38%22% 27%
30% 32%30%
29%
26% 26%
30% 29%40% 33%
51% 47%
26thApril
10thMay
24thMay
7thJune
21stJune
5thJuly
34% 32% 30%44% 38% 33%
27% 29% 28%
32%
16% 17%
40% 39% 42%25%
47% 50%
26thApril
10thMay
24thMay
7thJune
21stJune
5thJuly
39%27% 36% 35% 29% 28%
14%24%
36%25%
17% 17%
48% 49%27%
40%54% 54%
26thApril
10thMay
24thMay
7thJune
21stJune
5thJuly
23
65%67%
69%66% 65%
62%66%
10th May 17th May 24th May 31st May 7th June 21st June 5th July
S U P P O R T F R O M T H E B A N K S
Awareness of bank support for SMEs during COVID-19 has reversed the downward trend in line with the announcement to extend repayment holidays.
% 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% 2% 1% 5% 2% 5%10% 7% 7% 4%
11% 14% 6%
41%33%
41%37%
32% 29% 33%
42%
47%43%
48%45%
45% 49%
6% 11% 6% 9% 7% 10% 6%
10th May 17th May 24th May 31st May 7th June 21st June 5th July
Very positive
Somewhatpositive
Neutral
Somewhatnegative
Very negative
48% 58% 49%% Positive 57% 52% 55% 55%
24
S U P P O R T F R O M T H E B A N K S
Positive sentiment continues to be more evident amongst larger businesses.
3% 3% 2% 1% 3% 3% 5%10% 10% 7% 6% 6%
22% 14%
41% 38% 40% 43% 39%31% 36%
41% 42% 44% 42% 47% 35% 38%
6% 7% 9% 8% 5% 9% 6%
10th May 17th May 24th May 31st May 7th June 21st June 5th July
Very positive
Somewhat positive
Neutral
Somewhat negative
Very negative2% 3% 2% 4%
14% 6% 9% 7% 9%5% 6%
35%36% 34% 33% 28%
29% 26%
43% 47% 47% 51% 47% 56% 58%
8% 10% 7% 7% 13% 9% 9%
10th May 17th May 24th May 31st May 7th June 21st June 5th July
Very positive
Somewhat positive
Neutral
Somewhat negative
Very negative
6% 2% 2% 3% 2% 2% 3%4% 13% 10% 5% 11% 10% 10%
20%24% 26% 40%
38%24% 29%
68% 54% 49%41% 40%
42%43%
3% 7% 13% 12% 9%23% 16%
10th May 17th May 24th May 31st May 7th June 21st June 5th July
Very positive
Somewhat positive
Neutral
Somewhat negative
Very negative 4% 3% 6% 5%3% 4% 6% 6%
2% 1%
28% 33% 33% 24% 18%11% 12%
54% 49% 54% 56% 61%
60% 66%
12% 13% 8% 8% 10%26% 21%
10th May 17th May 24th May 31st May 7th June 21st June 5th July
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
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 :
B U S I N E S S R E V E N U E1
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 S2
B U S I N E S S C O N F I D E N C E3
26
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
The proportion of SMEs reporting to be very concerned about business survival has increased from 27% to 35% over the past 4 weeks.
HOW CONCERNED ARE YOU ABOUT THE SURVIVAL OF YOUR BUSINESS DUE TO THE COVID-19 CRISIS?
6% 7% 4% 9% 7% 10% 9% 8% 4%11% 9%
14%
20%23% 31% 22% 23%
28%20% 22% 30%
32%
22%24%
41% 29%31% 38% 35%
36%44% 42% 39%
30%
39% 27%
33%41%
35% 32% 34%26% 27% 28% 28% 27% 30%
35%
5th April 12th April 19th April 26th April 3rd May 10th May 17th May 24th May 31st May 7th June 21st June 5th July
Very concerned
Quite concerned
Not that concerned
Not at all concerned
% Total concerned 74% 70% 66% 70% 69% 62% 71% 70% 67% 57% 69%
It is likely the level of concern will continue to increase until the Federal Government announces concrete plans for support past September.
62%
27
94%
85% 83%
90%87%
76% 74%
87% 91%
80%
72%
82%79%
79% 75%72%
76%78%
81%84%
81%81%
88%
79%
86%80%
70%68%
68%
56%63% 65% 65%
68% 69% 68%
84%
74%
67%
71%70%
52%49%
69% 68%
53%55%
73%
64%66%
61%
54% 55%
65%
59%
50%
46%
36% 37%41%
61%63% 64% 64%
67%65%
67%
74%68%
57%59% 61%
5th April 12th April 19th April 26th April 3rd May 10th May 17th May 24th May 31st May 7th June 21st June 5th July
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
Concerns about survival continue to fluctuate significantly in both the hospitality and distribution sectors.
HOSPITALITY
% CONCERN ABOUT SURVIVAL OF YOUR BUSINESS(BY INDUSTRY)
PRODUCTION
SERVICES
RETAIL
CONSTRUCTIONDISTRIBUTION
28
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
The proportion of SME decision makers who remain very concerned about their health and wellbeing continues to trend slightly down, but still half of SME decision makers are at least quite concerned.
2% 3%10% 7% 7%
15%6% 11% 6% 7% 7% 10%
25%32%
31%27%
33%
40%
39% 33%38% 34% 36%
40%
45%38%
41%47%
41%
35%
38% 38% 39% 44% 41%36%
29% 26%18% 18% 18%
10%16% 18% 18% 16% 15% 14%
5th April 12th April 19th April 26th April 3rd May 10th May 17th May 24th May 31st May 7th June 21st June 5th July
Very concerned
Quite concerned
Not that concerned
Not at all concerned
% Total concerned 74% 64% 59% 65% 59% 45%
HOW CONCERNED ARE YOU FOR YOUR OWN HEALTH & WELLBEING DURING THIS CRISIS?
54% 56% 57% 60% 56% 50%
29
B U S I N E S S C H A L L E N G E S
Surprising to note decision makers are increasingly more comfortable with international travel for both themselves and their employees if there were no travel restrictions.
WOULD YOU BE COMFORTABLE DOING THE FOLLOWING ACTIVITIES IN THE CURRENT ENVIRONMENT?
(W/E 5th JULY)
20%
27%
43%
46%
66%
67%
80%
73%
57%
54%
34%
33%
Join a meeting with your colleagues in person
Join a meeting with your clients and/ or suppliers in person
Fly interstate yourself for business if there were no travelrestrictions
Allow your employees to travel interstate for business ifthere were no travel restrictions
Allow your employees to travel overseas for business ifthere were no travel restrictions
Fly overseas yourself for business if there were no travelrestrictions
No Yes
W/E 7TH
June% Yes
W/E 21st
June% Yes
% Change from last
wave
74% 80% 0%
72% 78% -5%
53% 59% -2%
54% 54% 0%
18% 23% +11%
22% 25% +8%
30
W O R K I N G F R O M H O M E
Working from home remains prevalent and likely to become more so with the new lockdown in VIC.
ARE YOU WORKING FROM HOME DURING THE COVID-19 CRISIS?
53%
18%
29%
50%
25% 26%
43%
25%
32%
43%
28% 29%
41%
26%
34%
41%
30% 29%
42%
23%
34%
Working from home Alternating between the office and home Not working from home
12th April 26th April 10th May 24th May 7th June 21st June 5th July
31
Less than 5 Employees
5 to 19 Employees
20 to 99 Employees
100 to 500 Employees
53% 48% 36% 28%
8% 12% 16% 18%
5% 8% 10% 9%
12% 21% 24% 30%
22% 10% 14% 15%
Base n= 146 201 235 156
W O R K I N G F R O M H O M E
The timeline for employees returning to the workplace continues to be pushed back, with an increasing number of businesses expecting their workforce to remain at home until at least September.
WHEN WILL THE MAJORITY OF YOUR STAFF BE BACK IN THE OFFICE/WORKPLACE?(AMONGST THOSE WHO EMPLOY STAFF)
56%
14%
10%
7%
13%
47%
12%
7%
17%
17%
43%
7%
4%
29%
16%
Already back in the office
By end of July
August
September or later
Don’t know/ too hard to predict
7th June 21st June 5th July
Sig higher than total at 90% CI Sig lower than total at 90% CI
50%
w/e 21st June: 59%w/e 7th June: 70%
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
34
9%
6%
5%
4%
2%
1%
13%
5%
7%
7%
8%
3%
1%
6%
4%
1%
10%
7%
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
37%
22%
14%
9%
18%
Less than 5 employees
5-19 employees
20-49 employees
50-99 employees
100- 500 employees
23%
22%
23%
23%
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
7% HOSPITALITY
14% HEALTH & EDUCATION
12% PRODUCTION
11% DISTRIBUTION
NOTE: CHARTS SHOW UNWEIGHTED DATA
10% CONSTRUCTION
35
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%
15%
12%
7%
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
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customers, employees, business partners, shareholders and the
community
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your individual needs
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