Small Business Report Shows Revenue Stable But Capacity and Labor Strain Increase

The fifth State of Small Business Report, conducted by the Council of Small Business Organisations Australia and Square, analyzed aggregated and anonymized data from hundreds of thousands of Square sellers and a national survey of 608 small business owners. The findings showed that while typical seller revenue rose 3.9%, matching inflation of 3.8%, many owners are working longer hours. Furthermore, the report noted that many small businesses have limited capacity to absorb increased customer demand.

The report indicates that small businesses are maintaining real-term revenue stability but are facing significant operational pressures. The combination of increased working hours, thin spare capacity, and limited ability to scale suggests structural strain on labor and business operations across the sector.