March 11, 2024

The Impact of the Economy on Small Businesses

There is a daunting obstacle that many small businesses experience from the increasing cost of living. In its recent report, MYOB Business Monitor highlights the impact of the economy on small businesses.

Rising Cost of Living

Key findings show how SMEs addressed the rising cost: 29% have increased the prices of their products and services, 28% made minimal or no profit, and 21% showed business owners reduced or have not accepted their income.

The survey indicates that almost one-third of the companies (34%) experienced a decline in their revenue over the past year. Meanwhile, 38% stated the core reason is the challenging economic conditions.

Other factors that contribute to the pressure faced by small businesses are the price of fuel (33%), the cost of utilities (32%), and rising interest rates (27%).

These economic fluctuations are not new to businesses but it certainly affect job security, wages, and the available opportunities in different sectors. As a means of survival, many are reevaluating their staffing needs which may lead to layoffs or hiring postponement. In turn, job seekers are more thorough in accepting roles that offer appropriate compensation and consider the tenure and stability of the company.

Partner with The Recruitment Alternative

With this, another suggested plan of action is partnering with a recruitment agency. The Recruitment Alternative offers expertise in navigating the complexities of the job market by providing professional and affordable recruitment services. As we understand the shifts in market trends, we provide helpful insights to small businesses such as talent competition status and salary comparison which provides better staffing solutions aligned with your financial allocation and requirements.

Job Seekers– Feel free to visit our Job Seekers page for job-hunting tips and the available positions we have!

Business Owners– Our line is always open and we are ready to work with you! Contact us today at 1300 548 546 or via

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