Small businesses in Australia, South Africa face rising costs

In Australia, AMP Bank’s Go Small Business Cost Pressure Index shows that operating costs for small firms have risen about 25% since March 2020, climbing from an index level of 100 to 124.6 by March 2026. The index attributes the increase to higher wages, rent, electricity, fuel, insurance and other expenses, with insurance costs up 52%, fuel 38%, interest 36%, electricity 26%, rent 23% and wages over 20%. AMP GO Director John Arnott said the index highlights hidden pressures that affect everyday prices, while Deputy Chief Economist Diana Mousina warned that many small businesses will stay under strain even if headline inflation eases.

A separate survey by Business Partners Limited in South Africa found that nine in ten small and medium enterprises are feeling operational pressure from recent fuel‑price hikes. The SME Confidence Index notes a shift from growth plans to short‑term survival and outlines common funding mistakes, such as using the wrong type of finance for a temporary cash‑flow gap and taking on debt before addressing underlying operational issues.