“As local businesses prepare to put another challenging year behind them, it’s encouraging to see optimism coming through around 2026,” Chadwick said.
“As our insights show, there’s greater confidence that the recent early signs of improving trading conditions could grow into something more sustained.”
Chadwick said even as high operating costs remained part of the backdrop, business owners were looking ahead with a stronger growth mindset.
Focusing on performance, 47% of local operators highlighted revenue and sales growth as the leading business goal for the year ahead.
Over one third (38%) will be focused on improving profitability and cash flow.
But with higher production costs and supply charges still hampering output, 34% of respondents said they would look to reduce costs, and more than a fifth (22%) are planning to improve operational efficiency.
Many of the concerns shared by SMEs from the past year remain top of mind for the year ahead.
Chief among them is the cost of living, with 55% of respondents saying it is impacting both business costs and consumer spending.
Other key concerns for the next 12 months include inflation levels (35%), the risk of falling back into a recession (26%), rising production and supply costs (25%) and the increasing cost of energy (25%).
“Balancing their growth ambitions with cost pressures is set to be a defining challenge of 2026 – particularly the early months.
“Key for business owners will be staying disciplined but adaptive in their approach to spending and investment, as they navigate the year ahead.”
To help manage concerns while still hitting their business goals, SMEs are focusing on their employees.
Retaining their skilled employees is a top priority for 20% of respondents, with 77% of respondents surveyed believing their current team has the skills to achieve their 2026 objectives.
The skills expected to be the most important to SME operators in 2026 include sales and customer relationship management (35%), financial management and business planning (32%), leadership and people management (27%), marketing and business promotion (26%), and problem solving and innovation (18%).
Chadwick said that while labour market pressures had eased, capability building continued to be a focus as SME owners and operators aimed for growth.
“SMEs are strengthening customer-facing skills, improving strategic planning and financial management, and looking for ways to boost efficiency across their operations.
“Ready to move from a mode of resilience to one of success and expansion, SMEs are sharpening their operations and positioning themselves to make the most of stabilising economic conditions.”
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