Nearly two thirds of Western Australian small businesses have had to change the way they do business to adapt to fluid market conditions, according to new research released today.
Research by American Express found 65 per cent of WA’s small businesses altered their strategy in some way to meet the changing demands of the market, with 7 per cent of businesses now unrecognisable to its original form.
Businesses with turnover between $200,000 and $2 million were the most likely to have changed, the research said.
Around 70 per cent of small businesses changed their product range or services; 43 per cent changed their target audience; while 24 per cent altered the structure of the business.
American Express head of small business services Jason Fryer said small businesses were apt to adapt to external changes that affect the health of the business.
“Small business owners understand that change is necessary to survive and prosper,” Mr Fryer said.
Mr Fryer said the research also showed WA small business owners were resilient to the current global economic turmoil, with 46 per cent expecting profits to remain steady, and 30 per cent expecting profit growth over the next 12 months.
“While the majority of small business owners acknowledge that both the global and Australian economies will impact their businesses in the next 12 months, there is a prevailing sense of ‘getting on with the job’ among operators in this sector,” Mr Fryer said.
“Small businesses are resilient and open to changing with the times. This is extremely positive, given that small businesses make up 96 per cent of Australia’s business community.”