SMEs are prioritising sales and business development tools above all other innovation investments, confirming the strong appetite for growth and productivity in the sector.

The renewed spending on sales support saw it edge ahead of customer service tools as the largest category of innovation spending for SMEs. Investment in manufacturing or production improvements was also popular, with a third of SMEs in a growth phase listing it a priority.

The headline findings are contained in the latest SME Growth Index Report from ScotPac, Australia’s largest non-bank lender. It found:

  • 23% of SMEs are directing their innovation spending towards sales and business development management support tools.
  • 22% of SMEs listed improved business forecasting tools as a topline priority.
  • 16% of SMEs are investing in cloud CRM systems and embedded financing platforms.

The research found that spending on artificial intelligence (AI) adoption remains a low priority for SMEs with just 7% nominating it as a key area for new investment – placing it just below spending on inventory management systems (8%) and automation tools (9.5%).

Despite the clear appetite for innovation, ScotPac’s research also found that one in three SMEs have no immediate plans to invest in new tools or technologies. This figure rises to nearly two-thirds among businesses with declining revenue, highlighting the cost pressures many small and medium businesses are experiencing.

Jon Sutton, CEO of ScotPac, said overall the findings reflect a positive shift in SME sentiment.

“With sales and business development tools leading innovation spending, Australian SMEs are clearly signalling their intent to grow and thrive, even in challenging times,” Mr Sutton said.

“Those that remain in sound financial health have broadened their focus from retention to expansion.  That is the point when access to fast, flexible and credible funding solutions becomes crucial for businesses looking to invest in their future,” Mr Sutton said.

Mr Sutton encouraged businesses looking to invest in new tools and technology to speak with ScotPac or their broker about funding options to boost their purchasing power.

“ScotPac has a range of funding solutions, including our award-winning Invoice Finance product, that are designed to help businesses unlock working capital to invest in tools that accelerate growth,” Mr Sutton said.

“Brokers who understand their clients’ needs and stay up to date with relevant finance products are well placed to support this renewed appetite for innovation.

“Our specialist teams are also on standby to assist any business owner or operator thinking about investing in tools to promote greater productivity,” Mr Sutton said.

About the SME Growth Index

Commencing in March 2014, ScotPac’s twice-yearly SME Growth Index is Australia’s longest-running research report on SME sentiment towards revenue growth prospects.

The Round 22 research was conducted by East & Partners who interviewed 724 SME enterprises with annual revenues of A$1-20 million.

SMEs surveyed have operated continuously for an average of 15.6 years and manage, on average, 55 full-time employees.

Sectors represented in the survey included Property & Business Services (14%), Manufacturing (13%), Wholesale (12%), Retail (10%), Transport & Storage (10%), Personal & Other Services (10%), Construction (10%) and other industries including Mining & Resources, Agriculture, Media & Telco, Accommodation, Cafes & Restaurants, Finance & Insurance (non-bank) and Electricity, Gas & Water.

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ScotPac is Australia and New Zealand’s largest non-bank SME business lender, providing funding to small, medium and large businesses from start-ups to enterprises exceeding $1 billion in revenues. For more than 35 years, ScotPac has helped thousands of business owners succeed, offering fast and flexible funding. From simple to complex, small to large, start-up, growth or turnaround – ScotPac can help with a range of funding including Invoice Finance, Trade Finance, Asset Finance and Business Loans.

 

For more information contact:

Todd Hayward
Mob: 0412 205 151