Small and medium-sized businesses in Australia are taking proactive steps to address ongoing challenges, according to new data released by National Australia Bank (NAB). The Q2 2025 SME Business Insights report highlights that cashflow (44%), profitability (38%), and government policies and regulations (37%) are the main concerns for these businesses. Each of these issues has seen a notable increase compared to the previous year.
Despite these pressures, business owners are not backing down. The survey found that half of SMEs are cutting costs and renegotiating supplier agreements. Other strategies include increased marketing efforts (37%), investing in talent (29%), and rethinking pricing strategies (29%).
NAB Group Executive, Business & Private Banking, Andrew Auerbach, commented on the findings: “It’s been very encouraging to see business confidence climb steadily over the last three months – now above its long-run average – despite rising global uncertainty. That’s a strong, positive sign for Australian SMEs and the broader economy,” Mr Auerbach said.
“Whether it’s smarter cashflow management or deeper customer engagement, SMEs are showing us what leadership looks like in action.
“As Australia’s largest business bank, we’re seeing firsthand how our customers are leaning into opportunity and adapting with agility, and optimism to meet a range of different challenges.”
These themes will be addressed at the inaugural NAB Business Summit in Melbourne this Wednesday. More than 450 entrepreneurs and industry leaders will gather to discuss key issues affecting SMEs, share ideas, and focus on customer engagement.
Speakers at the event include Nick Palumbo, founder of Gelato Messina; Chris Lucas, founder and CEO of The Lucas Group; and Laura Henshaw, co-founder and CEO of Kic. They will offer their perspectives on building successful companies in today’s environment.
Mr Palumbo shared his approach: “Running a business today means being obsessed with every detail from the quality of your product to the experience you deliver,” he said. “At Messina, we’ve invested in everything from farm-sourced ingredients to in-house chocolate production to stay true to our vision and keep customers coming back.”
Mr Lucas added: “Hospitality is one of the toughest industries, but it’s also one of the most rewarding,” he said. “It’s not too different from the fashion business in that trends come and go, so you’ve got to be constantly aware of what’s happening in the marketplace.
“You’ve got to be quick on your feet, you’ve got to be flexible, and you’ve got to be very open minded.”
Ms Henshaw also spoke about adaptability: “Running a business today means embracing change, adapting quickly, and being ready to make bold decisions,” she said. “Our community is at the core of everything we do at Kic. Real impact comes from listening to your customers, staying anchored in your values, and never losing sight of the problem you’re here to solve.”
The summit will take place at The Glasshouse in Melbourne. Topics up for discussion include shifting social trends, artificial intelligence opportunities and implications, as well as current global economic conditions.
NAB remains Australia’s largest business bank with more than 1.1 million SME customers supported by 6,000 bankers across 486 locations nationwide. The bank continues offering tailored lending solutions alongside strategic advice designed for businesses facing changing economic conditions.