Front Room Hair, which opened its door for the first time 15 years ago, has since evolved into a business that offers a wide range of beauty services. Owner Justine remains optimistic for the year ahead despite current challenges of running a small business today.
“We’re hoping that we can keep growing our business and diversifying but also bringing creative spaces together. We already have beauty, nails, hair and make-up services, and we’re looking to keep evolving and branching into events and education,” Justine added.
Broader implications
Small businesses are the engine of the Australian economy making up 97% of all Australian businesses and contributing to roughly one-third of the nation’s Gross Domestic Product (GDP)^. According to CommBank Executive General Manager Small Business Banking, Rebecca Warren, the success of the small business sector is crucial to growing Australia’s future economy.
Despite continued cost challenges, Ms Warren said small Aussie businesses remain incredibly resilient and cautiously optimistic.
“The recent reduction in interest rates has been welcomed with both arms by our small business customers, but running a business today continues to be tough as consumer spending recovery is taking longer than anticipated, and the macro-economic landscape continues to bring uncertainty.
“While there has been a slight decrease in sentiment from November 2024, our research shows the majority (63 per cent) of SME owners and senior managers feel optimistic about business performance over the next 12 months – down from 71 per cent last year.
“Additionally, plans to grow business remain strong with nearly two thirds of SMEs aiming for growth, down from 72 per cent in November 2024.”
Navigating the challenges
CommBank’s research shows Australian small businesses are very proactive when it comes to finding ways to reduce costs.
More than half of SME owners and senior managers (58 per cent) say they shop around for discounts on utilities at least once a year. Almost two in five (38 per cent) do so once a year, while one in five businesses (20 per cent) search for better deals every 6 months or more often.
According to Warren, shopping around for better offers and shifting to alternative suppliers is one of the best ways to reduce costs: “It can not only help cancel out the increase in costs a business has experienced that year, but also result in significant savings, especially given our research shows most SMEs are willing to look for a better deal.”
Other ways SMEs can reduce costs, according to Warren, include investing in technology and automation to reduce manual tasks, outsourcing non-core activities, reviewing subscriptions, increasing energy efficiency, and reducing unused office space.
How CommBank provides support
The research comes as CommBank reaffirms its commitment to helping small businesses navigate some of the challenges they are facing, by increasing the offers of CommBank Yello for Business, a recognition program now available to more than 340,000 small businesses across Australia via the CommBank app.
- Recognising that accounting, phone, internet, and legal support costs are often essential to running your business, CommBank Yello for Business provides eligible small business customers with:
- Promotional discounts on accounting software for the first six months;
- Up to 3 free months with a LegalVision membership;
- Discounts of 30 per cent (Everyday Business) and 50 per cent (Business Growth) on mobile, phone and internet bills with More for the first year*.
CommBank Yello for Business also offers discounts on items like workwear for tradies, hospitality or health workers, equipment hire, technology, office furniture and more.
“Taking advantage of some of those extra savings could make a real difference to a small business, freeing up some of that cash to spend on marketing, extra inventory or purely to increase cashflow,” Warren said.
The offers available through CommBank Yello for Business are part of the bank’s broader commitment to backing Australian small business, whether they are just starting out, or looking to grow.
CommBank’s partnership with University of NSW offers a free Cash Flow Management course for any Australian small business, while mental fitness programs delivered in partnership with Smiling Mind are tailored specifically for this audience.
Earlier this year, CommBank gave 50 businesses around the country their own billboard featuring three CommBank Matildas players to help promote their business. The bank also continues to support the Cyber Wardens program, which was launched in partnership with Telstra and Council of Small Business Organisations Australia (COSBOA), to help Australian small business owners upskill in cyber safety and scams awareness.
^ Source: Australian Small Business and Family Enterprise Ombudsman (Chart 1);
* Customer must sign up with and continue to use an eligible CommBank online bill payment method. Full offer terms and conditions apply, go to www.more.com.au/policies
For more information on CommBank Yello for Business: https://www.commbank.com.au/business/latest/commbank-yello-for-business.html
For more information on CommBank Business Cash Flow Management Course, Smiling Mind and the Cyber Wardens program: https://www.commbank.com.au/business/small-business.html
About the research
All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 511 adults. Fieldwork was undertaken between 23rd - 27th May 2025. The survey was carried out online. Results have been weighted by location and business size to be representative of all Australian small (1–19 employees) and medium (20–199 employees) businesses, in line with national business population proportions.
