Australian SMEs tackle uncertainty with bold moves and customer obsession

02 September 2025
Business Banking

• Cashflow, profitability and regulation continue to keep Aussie SMEs up at night
• Business owners responding by doubling down with bold decisions and a focus on customers
• Inaugural NAB Business Summit to address myriad of challenges facing Aussie SMEs

Small and medium-sized businesses across Australia are making bold moves to tackle the challenges keeping them awake at night, according to NAB’s latest SME Business Insights data.

The Q2 2025 data, released today, reveals cashflow (44%), profitability (38%), and government policies and regulations (37%) are the top concerns for SMEs, with each showing a significant year-on-year increase.

But rather than retreating, business owners are responding with grit and innovation. Half of those surveyed are actively cutting costs and renegotiating supplier terms, while others are ramping up marketing efforts (37%), investing in talent (29%), and reimagining pricing strategies (29%) to stay competitive.

NAB Group Executive, Business & Private Banking, Andrew Auerbach said SME customers continue to navigate uncertainty with creativity, determination and a renewed sense of confidence.

“It’s been very encouraging to see business confidence climb steadily over the last three months - now above its long-run average - despite rising global uncertainty. That’s a strong, positive sign for Australian SMEs and the broader economy,” Mr Auerbach said.

“Whether it’s smarter cashflow management or deeper customer engagement, SMEs are showing us what leadership looks like in action.

“As Australia’s largest business bank, we’re seeing firsthand how our customers are leaning into opportunity and adapting with agility, and optimism to meet a range of different challenges.”

This sentiment will be front and centre at Wednesday’s inaugural NAB Business Summit in Melbourne, as more than 450 entrepreneurs and industry leaders come together to address the critical issues facing SMEs, explore and exchange ideas, and spotlight customer obsession.

The event will feature a number of iconic NAB business customers - including Nick Palumbo, founder of Gelato Messina, Chris Lucas, founder and CEO of The Lucas Group, and Laura Henshaw, co-founder and CEO of Kic - who will be on hand to share their business experiences and discuss what it takes to build and grow a successful company.

“Running a business today means being obsessed with every detail from the quality of your product to the experience you deliver,” Mr Palumbo said.

“At Messina, we’ve invested in everything from farm-sourced ingredients to in-house chocolate production to stay true to our vision and keep customers coming back.”

“Hospitality is one of the toughest industries, but it’s also one of the most rewarding,” Mr Lucas said.

“It’s not too different from the fashion business in that trends come and go, so you've got to be constantly aware of what's happening in the marketplace.

“You've got to be quick on your feet, you've got to be flexible, and you've got to be very open minded.”

“Running a business today means embracing change, adapting quickly, and being ready to make bold decisions,” Ms Henshaw said.

“Our community is at the core of everything we do at Kic. Real impact comes from listening to your customers, staying anchored in your values, and never losing sight of the problem you’re here to solve.”

Hosted at The Glasshouse in Melbourne, the 2025 NAB Business Summit will examine issues facing SMEs, including shifting social trends, the opportunities and implications presented by AI, and the current global economic volatility.

As the largest business bank in the country, with more than 1.1 million SME customers and a dedicated team of 6000 bankers across 486 locations, NAB continues to support Australian businesses with tailored lending, strategic advice and tools to thrive in an ever-changing economy.

Notes to editors

• Data sourced from NAB Economics SME Business Insights Q2 2025 survey of 600 SME owners.