A recent Xero study suggests a potential $11 billion revenue boost for small businesses. This could be achieved by shifting a mere 10% of spending from large to small businesses. To arrive at this conclusion, economists analyzed 2024 New Zealand household consumption data.
The methodology used by the researchers excluded spending unlikely to shift to smaller businesses. This approach aimed to offer a realistic view of the possible financial impact of changing spending habits.
Small businesses, often dubbed the backbone of global economies, stand to gain significantly from changes in consumer spending. This study emphasizes the substantial impact even a minor shift, like redirecting 10% of spending, could have on the small business sector.
Global Impact on the SME Economy
Despite using New Zealand’s economic data, the study’s findings could have worldwide implications. Our consumer spending choices can directly influence the health of the small business sector. By choosing to support smaller businesses, we could collectively pump billions into the SME economy.
The Xero research highlights the potential benefits of supporting small businesses. It also sheds light on the financial hurdles they often face. Unlike larger corporations, SMEs frequently lack resources, making market competition challenging.
Redirecting a portion of spending towards smaller businesses can tangibly support these enterprises. This could stimulate growth and innovation in the sector. An $11 billion revenue increase could be transformative for many small businesses. It could provide the funds needed to invest, create jobs, and make a more significant economic contribution.
At a time when many small businesses are still rebounding from the pandemic, these findings offer a glimmer of hope. They show that each person can support the SME sector through their daily spending. After all, a thriving small business sector is vital for a robust and resilient economy.
