Source: Adobe/Monkey Business
Cash flow challenges are standing in the way of small business owners being able to pay themselves, with one-third (34%) saying that they are unable to do so and some business owners even dipping into their personal savings to mitigate rising costs and make a profit, according to a study released this morning by global small business platform Xero.
The report “Money Matters: navigating the impact of economic conditions on the cash flow of Australian small and medium-sized businesses” surveyed businesses on their behaviours and perspectives on cash flow management.
It found 60% of Australian small businesses say they don’t feel confident in their ability to absorb any financial shock and have been experiencing cash flow challenges over the past year, forcing 27% to dip into their personal savings to get through periods of tight cash flow.
Nearly half (48%) of small business owners say they are concerned about their business’ financial future, with 57% reporting that inflation has affected their cash flow over the past six months.
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