Businesses sentiment of small enterprises hit highest since 2019

Over 6 in 10 small businesses in Singapore expect growth, CPA Australia found.

Business sentiment amongst small businesses in Singapore last year surged to its highest level since 2019, and this positive trend is expected to continue into 2025, according to the latest survey by global professional accounting body CPA Australia.

Over 6 in 10 (62%) of small businesses in Singapore expect growth in 2025, the highest level of confidence since 2018, according to the Asia-Pacific Small Business Survey published by CPA Australia in March 2025. About 63% of respondents expressed confidence in Singapore’s economic growth, up from 60% in 2024.

The strong confidence amongst small businesses in Singapore reflects a growing sense of optimism, not only in business prospects but in the overall economic environment, said Greg Unsworth, CPA Australia Singapore divisional president and PwC Singapore digital business and risk services leader.

“The key to continued success is for businesses to stay agile and forward-thinking and seize new opportunities,” Unsworth said.

Online and digital adoption rises
In 2024, 63% of small businesses in the country generated over 10% of their revenue from online sales, up from 36% in 2019.

Over 3 in 4 (76%) of small businesses generated 10% of their sales from digital and online payment technologies like PayPal, Apple Pay, and GrabPay, from 51% in 2019.

Small businesses also saw fewer cybersecurity incidents in 2024, CPA Australia found. Only 39% of businesses reported losses or disruptions due to cyberattacks in 2024— from 54% of the surveyed businesses in 2023.

Small businesses reportedly expect this downward trend will continue, with only 33% of businesses anticipating a cyberattack this year, down from 45% in 2024, CPA Australia said.

"This improvement suggests that small businesses are enhancing their cybersecurity measures and are becoming more resilient and better equipped to safeguard their operations from cyber threats," Unsworth said.

However, small businesses in Singapore have lowered their expectations for strong revenue growth from exports.

Less than 2 in 10 (18%) of respondents anticipate strong revenue growth from exports, from 27% in 2024.

"Geopolitical tensions and the possibility of trade tariffs are most likely the cause of concerns about export growth," said Joshua Ong, CPA Australia Singapore divisional deputy president, and managing partner at Baker Tilly.

Declining innovation, ageing population
CPA Australia posits that it observed a declining trend in innovation, with only 23% of small businesses planning to introduce a new product, process, or service that is “unique to Singapore or the world” in 2025, its survey found.

This is lower than the 37% of respondents with such plans in 2024.

Whilst this figure remains slightly above historical averages, it signals a potential slowdown in business innovation, CPA Australia said.

This may be due to the ageing population of small business owners in Singapore. CPA Australia’s survey indicates “strong correlation between business owners under 40 and higher levels of business growth, digital adoption, innovation and job creation.”

As the proportion of older business owners rises, it could pose long-term challenges for the dynamism and sustainability of some small businesses, the survey warned.