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Capify Quarterly Report Q1 2023

Stability in the Australian Economy

Report Topic

Australian Economy Stability

Report Date

Q1 2023
18 March - 30 March

Survey Size


SME Average Turnover

$60k - $100k

Average SME Business Debt


Empowering Your Business Growth

At Capify, we realise that every business has particular financial requirements. That’s why we provide individualised financial solutions that are designed just for your company. Our team of professionals works directly with you to understand your unique needs and give you the appropriate financial resources to support the expansion of your business.

Overview to Report

The Capify Quarterly report highlights the significant events that changed the economic landscape over the past few months and provides an overview of the present status of the Australian economy.


It presents a mixed picture of the current situation of SME businesses in the country. While the overall outlook is positive, we also see inflation and interest rates as the main concerns for the Australian economy.


With commodity prices declining and supply networks operating as they did prior to the pandemic, there are encouraging indicators that the global inflation rise that has afflicted most nations is beginning to lessen in 2023. Even though there are now indications that some nations may be close to, or maybe at, the top of their tightening cycle, central banks have continued to fight against inflation by raising interest rates.


This report aims to provide readers with a deeper understanding of these challenges and opportunities for SME businesses through a combination of data analysis, expert insights, and real-world examples.


Whether you are a business owner, investor, or simply someone who is interested in the current state of the Australian economy, the Capify Quarterly report is an essential resource for staying up-to-date on the latest trends and developments. Capify will continue to monitor these developments and provide insights and recommendations for how to navigate our shifting economic landscape.

Key Findings

Business Confidence

According to Q1 2023 study, Australian businesses are facing significant challenges due to cash flow concerns and rising product prices. The increase in product prices could be attributed to changes in international trade laws and supply chain disruptions. Additionally, the commodity price index decreased by 5.2% in April 2023 in SDR terms, indicating a continued decline in the index over the past year. Policymakers must consider these factors while formulating economic strategies to help businesses overcome their challenges. It is imperative to find solutions that can alleviate cash flow issues and manage rising product prices to support the growth of Australian firms.

Revenue Growth

This report notes that a significant portion of SMEs have a turnover of less than $250,000, with revenue and turnover data exhibiting a similar pattern. The study claims that profitability and revenue generation exhibit a strong association, highlighting the need for additional research to find ways to boost the financial performance of SMEs.

Employment Stability

Our report reveals that employee levels among SME’s in Australia have remained stable, with a majority of businesses keeping their employee levels the same and not planning to make any changes. Additionally, a significant portion of businesses are even understaffed, indicating potential opportunities for hiring in the future.

Inflation & Interest Rates

Interest rates and inflation are the top concerns for Australian businesses. Higher interest rates can lead to reduced profitability and growth, while rising inflation may impact consumer demand and reduce purchasing power, potentially forcing businesses to increase prices and make their products and services less competitive.

Cash Flow

The report reveals that most SMEs have low debt and cash balances, indicating a potential for expansion through various financing options. The causes of these low levels and prospective funding sources to help SME growth and expansion require more investigation.

Covid Impact and Government Assistance

The COVID-19 pandemic has had a lasting impact on many SME businesses in Australia, with the majority still being affected, at least to some degree. While some have applied for government grants for assistance, ongoing support and flexibility will be necessary for businesses to fully recover into the next quarter.

Most Challenging Factor for Businesses Currently

Most Challenging Factor for Businesses Currently

Focus Areas for Businesses over the Next 12 Months

Focus Areas for Businesses over the Next 12 Months

Want to see the full report?

If you are an existing business and want to see the full report, please participate in our survey and receive the final report results. Otherwise, if you are media or an existing Capify partner send us an email at [email protected]

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