Early signs of recovery are emerging for Australia’s small and medium-sized enterprises (SMEs), with new MYOB research revealing improving revenue trends and a modest lift in confidence heading into 2026.
The November release of the MYOB Bi-Annual Business Monitor (a survey of 1,087 Australian SMEs) reveals a sector that, despite facing some economic volatility, is moving into the new year with measured optimism and a clear focus on stability.
While utility prices remain one of the most immediate pressures for businesses, particularly as the government’s Energy Bill Relief Fund ends on 31 December, indicators across revenue, productivity and digital adoption point to growing resilience and readiness for recovery.
Nearly a quarter (24%) anticipate improvement, holding steady since June and only slightly below levels from late 2024.
Younger business operators remain notably positive, with 37% of those aged 18–30 expecting economic conditions to lift. Startup confidence also remains relatively high with 25% predicting improvement.
More SMEs are also reporting improved financial performance. Nineteen per cent say revenue is up, a four-point rise since June, with one in three (33%) attributing the increase to stronger consumer demand.
MYOB CEO Paul Robson said start-ups are signposting some of the clearest evidence that economic recovery is rippling through the SME community.
“More than a third of start-ups reported higher revenue, nearly three times the rate of established businesses, and half expect revenue to grow over the next year,” Paul said.
“It suggests new and early-stage businesses are adapting faster and capitalising on emerging opportunities.”
Across all industries, optimism is gradually strengthening: Overall 26% expect revenue to rise over the next 12 months, up from 24% in June.
This cautious momentum is unfolding against a backdrop of rising operating costs. The cost of utilities has emerged as the number one pressure for SMEs, with 30% naming them as a cause of a lot or extreme pressure - an 11-point jump in six months.
The sector is also preparing for the Energy Bill Relief Fund to cease at year-end. This leaves many small businesses exposed during a period of escalating energy costs.
Shrinking margins (25%) and rising fuel costs (25%) also remain significant challenges. However, other pressures including interest rates, competitive intensity, customer retention and labour concerns have softened since June, helping to create a more manageable trading environment ahead of 2026.
Mr Robson said the data reflects a business community demonstrating determination and clarity of purpose.
“SMEs have endured a challenging few years, yet we’re now seeing a genuine shift in confidence.
“Operators are adjusting to the new environment, focusing on what they can control, and increasingly turning to digital tools to enhance productivity and performance.”
Across revenue expectations, profitability, investment intentions and technology use, MYOB’s latest data points to a sector that is increasingly stable and future focused. With cost pressures beginning to ease, digital capability expanding and AI adoption accelerating, Australian SMEs are well-positioned to harness new tools that improve productivity, reduce administrative burden and unlock growth.
“As SMEs strengthen their operating foundations, opportunities for digital uplift, particularly around energy management, workflow automation and AI, will play a critical role in boosting competitiveness and sustaining long-term success,” Mr Robson said.
You can read the full report here.
About MYOB
MYOB is a leading provider of cloud-based business management solutions with a core purpose of helping more businesses in Australia and New Zealand to start, survive and succeed. MYOB’s next-generation technology platforms deliver end-to end solutions for people and finance through to tax, supply chain, projects, employees and customers, empowering businesses with 0 to 1000 employees alongside a network of accountants, bookkeepers and consultants. For more information visit myob.com or follow MYOB on LinkedIn.