A staggering 93% of small business owners reported higher costs this year, while 64% saw profits fall - the sharpest decline since the report began.
Taxes, wages, and insurance top the list of pressures, with taxes ranked as the number one cost by half of respondents. For many, that means dipping into personal savings or skipping their own pay to keep the lights on.

As one respondent put it: “I’m paying my employees and suppliers, but there’s nothing left for me and my family.”

At Smart Business Consulting, we see this every day - business owners caught between rising costs and limited cashflow visibility. The key isn’t to work harder; it’s to work smarter, with clear forecasting, pricing strategy, and financial structure that protects the owner, not just the operation.

Small business owners spend, on average, over 12 hours each week on financial management and regulatory tasks - time that could be spent on clients, innovation, or growth.
Nearly one-third of owners spend six or more hours a week purely on compliance.

It’s no wonder that red tape and regulation now rank among the top five business expenses.
From payroll tax confusion to constantly changing IR rules, compliance has become more than an administrative burden - it’s a commercial constraint.

The data paints a sobering picture of owner wellbeing:

• 76% report stress or anxiety
  
• 65% have disrupted sleep
  
• 57% are experiencing burnout
  

Only one in four have a strong support network. Behind every ABN is a person - often a parent, partner, or community leader - carrying the weight of regulation, debt, and risk alone. This is where structure and strategy matter most. Clear reporting, consistent cashflow, and defined business roles reduce overwhelm. Resilience isn’t about endurance; it’s about systems that support sustainability.

Amid the strain, there’s a quiet revolution underway. Over 46% of small businesses using AI report measurable performance improvements, while cyber risks remain a growing concern. Technology can’t replace business acumen, but when guided strategically, it can amplify it. From AI-driven cashflow management to integrated reporting dashboards, the right systems give business owners clarity - not just data.