Originally published in The Canberra Times

Australia's small and family businesses are backing themselves and drawing on their self-belief and entrepreneurial instincts to envision a more positive year ahead.

The ASBFEO Small Business Pulse increased by 0.8 per cent in the three months to November 2025 - the third consecutive quarterly increase. It increased 0.5 per cent compared to the same time last year.

With relatively stable economic conditions and a reduced likelihood of further interest rate relief in the near term, the Pulse reflects the inherent optimism of enterprising women and men with business owners focused on creating their own opportunities and positive momentum.

The Pulse shows enterprising women and men are not simply hanging on and waiting for perfect trading conditions - they are up and about creating their own opportunities.

So what is driving this renewal?

The November Pulse points to practical ambition. Small business owners are turning their minds to how to electrify their business and position themselves for success. Technology and artificial intelligence are front of mind.

Small businesses are asking how tech can help them do more with less - streamlining the 'business of running the business' and finding new ways to create value and find and delight customers.

Queries about ecommerce and websites, digital and social media marketing and the opportunities artificial intelligence may provide remain elevated.

Interest is high in how artificial intelligence may streamline compliance, automate routine tasks and other administrative tasks.

Small businesses are leaning into fresh ways to expand their offerings.

Whether it is expanding online, tapping into export markets or diversifying product lines, small businesses are looking beyond their traditional customer base and existing market reach.

There has been continued momentum in research into opportunities to harness technology and artificial intelligence to boost efficiency and power new waves of growth - momentum that's reshaping the small business landscape.

While there is continuing momentum for small businesses to explore opportunities to expand into fresh markets, customer retention is another priority.

With so much choice, convenience and sharp pricing for customers, small businesses are asking how they can delight their customers in new ways.

It might be through unique experiences, personalised service, community engagement or innovative loyalty programs.

Risk management is also a key consideration for small business owners, with strong appetite for practical information on how to increase their cyber security.

We also see succession as a source of fresh energy.

Enquiries about passing on existing businesses to family members have increased, with early signals that the new generation of leaders are implementing new ideas while honouring the family legacy.

Succession, when thoughtfully executed, can bring new insights and perspectives that can reinvent a business.

It's encouraging to see that interest in starting a new business remains elevated.

Over the past two years, interest in starting a business has been evenly split between women and men.

It's a healthy balance that should encourage policy makers and financiers to back aspiring entrepreneurs.

Additionally, digital platforms have fundamentally changed the way small businesses promote their business, and connect with and sell to their customers.

The promise of reach and new markets for small businesses comes with additional risk of disruptions to business operations if things go wrong, such as business accounts being hacked or receiving an unexpected deactivation. For those important accounts, set them up so that platforms can communicate with you via an app, text message or email to help with account recovery.

Small businesses would be savvy to expand their business online presence to more than one platform so that if anything goes awry, they can use the other platforms to continue to operate.

With the modest uptick in conditions last quarter, cautious optimism paved the way to renewed sense of hope for the future and what needs to happen for small businesses to thrive and prosper in the years ahead. This shift signals a move from reactive to proactive thinking - from surviving to taking action to thrive.

Small businesses are still spending plenty of time in their business, tending to the day-to-day, but more and more are carving out time to work on their business. The Pulse shows they're thinking about business opportunities and needs into the future, thinking strategically about growth, innovation and sustainability.

This positive momentum is a welcome sign of improved conditions, but green shoots don't automatically become a lush landscape of a self-sustaining supportive small business ecosystem.

We must continue to support small business navigate the challenges and headwinds that are certainly persisting, while also seeking to put wind in their sails by creating business conditions and a trading environment where small businesses thrive.

In recent op-eds I have emphasised the need for practical, right-sized regulation to boost productivity, and for ensuring access to justice so small business owners are not priced out of defending their economic interests.

These are just a few of our initiatives from our 14 steps to energise enterprise that can help make this renewal durable.

Small and family businesses are the lifeblood of our communities and economy. They are the local cafe that knows your order, the tradie who keeps your home humming, the regional or rural business connecting farmers and suppliers, or the family-owned business that employed you or someone you know in your first job as a youngster.

Renewal is gathering pace, but it will only endure if we keep shaping an ecosystem that enables enterprise to thrive. While we're on the cusp of the festive season, think how you can show your support - shop local, shop small and family business. Let's do what we can to maintain the momentum we're seeing early signs of now into thriving, lively local economies and communities, and sustained prosperity for all. The Pulse is available now on our website.