A recession may be on the horizon. Here’s how Australian SMEs can prepare for it

The cold winds of recession are whipping up across the globe with some analysts estimating the risk of recession in Australia over the next 12 months at 50%. Without a doubt, many SMEs are likely wondering how best to protect themselves. As consumer pressure continues to increase, there’s a possibility that businesses will start cost-cutting and scaling back their operations pre-emptively. But this approach risks creating longer-term problems for those businesses. History shows us that during tough times, it’s critical to balance both protecting the business with keeping an eye open for meaningful opportunities.

Inflation is a complex concept, not experienced equally by different sectors or consumer groups.