By Kymberly Martin
Amex Report shows small businesses support each other.
Small businesses might be their own best customers with $204 billion flowing between businesses each year. The latest American Express Shop Small research report revealed that these businesses were the most actively networked with 62% reporting that their operations benefited other small peers, spending an average 9.892 per month. The strategy seems to be working with 65% of retail businesses expected to still be operating in three years.
Small Australian businesses source goods and services from 4.4 other small suppliers each month, spending an average $8,600 in a typical month or $104,000 annually. Also, 24% spent more than $10,000 and 10% spent more than $20,000 each month. Further, 24% said the arrival of new business has made it easier to locally source products and services while 32% said it had increased customer footfall and profits.
Other industry findings indicated that small business are keen to collaborate more than they are now, with 26% wanting to do so more than they currently do and 58% would be open to greater collaboration.