Ahead of Shop Small Month, American Express's The Economy of Shopping Small: Back Your Backyard report has revealed that one third of Australian small business owners fear becoming insolvent in the next three to five years.
Fashion retailers are among the most concerned with 43% admitting this was a fear.
The report found that small retail business owners were putting in the most work hours across all industries and many were not aware of how the government could help them.
Fox and Dove Boutique owner James Foran believes that customer service is important in helping to remain successful as a small business.
“We try to remain focused on customer service and creating an environment and experience where people feel special.”
He attributes curating a unique product offering to helping build and maintain his loyal customer base as well.
“The challenge we love is constantly finding the best new Australian designers that aren't available in the bigger department stores.”
The report also found that 41% of small businesses have a relative working with them in some capacity and 50% of owners admitted their family members were unpaid to cover staff shortages.
For Foran, finding and maintaining exceptional staff is one of the biggest challenges as a small business owner and admits his own family step in to help from time to time.
He said he would like to see more assistance from the government for small businesses starting out.
“Like any small business, we'd love to see some tax concessions to help during the infancy and early days of growth.”
Meanwhile, Waters said that it is more important than ever for consumers to get behind small businesses.
“Shop Small reminds consumers that every cent counts and can make a difference to their success or failure.”