SME Index
Shift's SME Index uses transaction data from a representative sample of small and medium enterprises to get deeper insights into the financial and operating performance of businesses across Australia. The index was baselined to the start of the COVID-19 pandemic and paints a picture of SME health in Australia’s new economic environment.
Back to where we started
- The past year was full of considerable challenges for Australia’s small and medium enterprises (SMEs), who took extraordinary efforts to adapt and transform their business operations during unprecedented circumstances.
- The SME Index ended 2020 relatively flat year-on-year as many SMEs began 2021 where they started – albeit with updated business models after being forced to bring forward years of development.
The K-shaped recovery continues
- Data shows that even though 63% of SMEs maintained or improved their sales during 2020, more than one in three SMEs started 2021 trying rebuild their business, making for a K-shaped economic recovery.
- International borders still remain shut, and sporadic local virus outbreaks can still trigger state border closures, affecting domestic tourism, hospitality, food, entertainment and many other industries.
Methodology
The index is calculated by taking a representative sample of businesses from around the country (varied by size, industry, and location) and looking at their credit transactions across all account types (e.g., transaction, savings, credit card). The index has been baselined to the start of the crisis and uses 6 months of average sales as the dominator. SMEs included in the index have all been in operation for over three years and have average yearly sales of $1.5 million.
Bank Connect
Shift uses Bank Connect, a technology that leverages transaction bank data to facilitate faster credit decisions and make business finance simpler and frictionless for our partners and customers. Bank Connect allows bank statement data to be retrieved in encrypted form, adhering to the highest levels of data protection and security.
Learn more.
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The report has been prepared for information purposes only without taking account of the objectives, financial situation or needs of any individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice. All material presented in this report, unless specifically indicated otherwise, is under copyright to Shift. None of the material, nor its content, nor any copy of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior written permission of Shift.