Overview

The COSBOA Small Business Perspectives Report is an annual research initiative designed to track the experiences, challenges and operating environment of Australia’s small business sector. In 2025, Survey Matters was engaged for the first time to design, deliver and analyse the report, bringing a fresh evidence-based approach to this flagship project. The insights produced have set a new benchmark for COSBOA’s annual reporting.

What Survey Matters Delivered

The 2025 research program combined a large-scale national survey with in-depth qualitative interviews to capture both the breadth and depth of small business experience. A total of 841 business owners participated in the survey, which was weighted to ABS industry counts to ensure representation across sectors. The questionnaire explored financial performance, cost pressures, regulatory burden, skills and workforce issues, digital capability and mental wellbeing. Qualitative interviews added context and nuance, highlighting the lived experience behind the statistics and allowing case studies to be developed for the final report.

Survey Matters was involved in every component of the research, including design, data collection, analysis and reporting. The final report combined rigorous statistical analysis with accessible narrative insights to support COSBOA’s policy priorities and public messaging.

Key Insights

With small business making up around 97% of all businesses in Australia and employing more than 5 million people, understanding how small business differs from larger organisations is essential to designing appropriate policy. In 2025, the research findings paint a stark picture of the pressures currently shaping small business life.

Rising costs are having a profound impact, with almost every category of operating expense increasing over the past year. Ninety-three per cent of respondents reported higher business costs, and nearly two-thirds recorded lower profits compared to the previous year. Many business owners are absorbing these pressures personally: sixty per cent were either occasionally or frequently unable to pay themselves during the past twelve months, and almost two-thirds drew on personal savings to keep their business operating.

Regulatory and compliance obligations emerged as a major pain point, with many describing the administrative load as overwhelming and costly. Only a minority felt confident they understood all their obligations, and nearly three in 10 view compliance as one of their top three business expenses.

Workforce shortages also continue to constrain growth, with business owners struggling to find suitably skilled staff and facing wage expectations they cannot sustainably meet.

Faced with these challenges, the mental load of running a small business is significant. Three-quarters reported stress or anxiety, two-thirds experience disrupted sleep, and more than half felt burnt-out.

The research also highlighted emerging challenges in technology and digital capability. While some businesses are beginning to integrate AI and automation into their operations, almost half are not using these tools at all, and many feel underprepared for cybersecurity risks.

Launch and Impact

The 2025 Report was released at COSBOA’s Council Day and Dinner in Canberra. The findings received extensive coverage, with particular attention paid to declining profitability, the escalation of regulatory costs and the alarming mental health impacts on small business owners.

COSBOA is now using the research to advocate for reforms that would meaningfully reduce pressure on small business owners, including simplifying compliance, improving the fairness of employment regulation, easing cost burdens and strengthening digital capability and cybersecurity support.

 The COSBOA Small Business Perspectives Report provides critical insights into the state of Australia's small business sector in 2025.

Survey Matters' research provides COSBOA with the evidence to advocate effectively for small business. The report brings evidence to national discussions on small business sustainability and economic impact.

Read the Report Here