NAB study highlights small business fragility

Australian small and medium business owners are struggling to manage business cash flow issues, causing owners to take pay cuts, with the flow-on effect damaging personal life, according to the National Australia Bank's SME Cash Flow Study.

In the state by state results, New South Wales contained the largest amount of small business owners who had taken a pay cut, at 63 per cent, with Western Australia 59 per cent, Victoria 56 per cent and Queensland 52 per cent.

More than nine out of ten SME owners in the three east coast states are frequently stressed about cash flow, with over four fifths adding the cash flow concerns have affected their home life.

Western Australian results were slightly better, with 82 per cent frequently stressed about cash flow, and 88 per cent saying the concerns impacted home life.

Galaxy Research conducted the survey.