Despite the rising costs of doing business the report found that SME revenue continues to remain steady with more than two-thirds of businesses reporting turnover comparable or exceeding pre-pandemic levels.
However, more than half (52 per cent) also expected local economic conditions to weaken over the next three months and 80 per cent are concerned about rising energy and fuel costs.
As the labour shortage continues to plague businesses, 32 per cent of SMEs said they have job roles they are trying to fill.
It is notable that concerns regarding supply chain issues (68 per cent), energy (80 per cent) and fuel costs (80 per cent) have all come off the extreme highs reported in July.
To enable growth SMEs will need more staff, but filling positions continues to be challenging with scarcity in applications (75 per cent), lack of qualified candidates (58 per cent) and competition for talent (34 per cent) all hindering recruitment efforts.
Accordingly, the ongoing upward trend in wage growth spiked significantly in August, indicating SMEs are lifting remuneration and benefits to attract and retain staff in this highly competitive market.
In summary, SMEs are continuing to adapt to the challenging conditions with sentiment remaining relatively positive and growth expectations improving. The staffing challenges are ongoing, with wage growth now escalating as SMEs battle to attract and retain talent in a historically tight labour market.
