Australia's small and family businesses are charting a course towards a brighter future, fuelled by self-belief and a proactive entrepreneurial spirit, according to the latest industry data.
The ASBFEO Small Business Pulse recorded a 0.8 per cent increase in the three months to November 2025, marking the third straight quarter of growth. Compared to the same period last year, the index is up by 0.5 per cent.
Drivers of Optimism: Ambition Meets Technology
Rather than waiting for ideal economic conditions, business owners are actively creating their own momentum. The November Pulse report highlights a surge in practical ambition, with a sharp focus on digital transformation.
Key areas of interest include leveraging technology and artificial intelligence to streamline operations, reduce administrative burdens, and enhance customer value. Queries about e-commerce, digital marketing, and the potential of AI remain significantly elevated.
Small businesses are keenly exploring how AI can automate routine tasks, simplify compliance, and free up resources for core business activities.
Expanding Horizons and Securing the Future
The drive for growth is seeing firms look beyond traditional boundaries. Strategies include expanding online sales channels, exploring export opportunities, and diversifying product ranges to reach new customers.
While growth is a priority, customer retention remains equally critical. In a competitive market, businesses are innovating with unique experiences, personalised service, and loyalty programs to keep clients engaged.
Risk management, particularly around cyber security, is also a top concern, with strong demand for practical guidance on protecting digital assets.
Renewal Through Succession and New Ventures
A notable source of fresh energy is business succession. Enquiries about passing enterprises to family members have risen, with new leaders blending innovative ideas with respect for legacy. This thoughtful transition is seen as a powerful way to reinvigorate established businesses.
Encouragingly, interest in starting new ventures remains high. Over the past two years, this interest has been evenly split between women and men, presenting a balanced landscape for future entrepreneurship.
The report cautions that while digital platforms offer immense reach, they also bring risks like account hacking or deactivation. It advises businesses to diversify their online presence across multiple platforms and secure key accounts with robust recovery options.
From Surviving to Thriving
The modest uptick in conditions has fostered a cautious optimism, shifting mindsets from reactive survival to proactive strategy. More business owners are carving out time to work on their business's future, not just in its day-to-day operations.
Australian Small Business and Family Enterprise Ombudsman Bruce Billson emphasised that this positive momentum needs nurturing. Practical, right-sized regulation and ensuring access to justice are among the initiatives needed to create a durable, supportive ecosystem where small businesses can flourish.
As the festive season approaches, supporting local and family businesses is a tangible way for the community to help maintain this growing momentum towards thriving local economies.
