Report: SMBs across ANZ head into shopping season “most confident” economically among UK, US and Canada
Constant Contact’s global SMB report reveals 67 per cent of SMBs across A/NZ said they were confident in the economy to finish the year – the highest among polled regions
29 per cent ANZ SMBs say they don’t fully understand how to use AI effectively, and 33 per cent are worried about data privacy and security
BRISBANE, AU, November 27, 2025 – Small-to-medium businesses (SMBs) across Australia and New Zealand (ANZ) are heading into the busiest shopping period of the year with the most economic confidence compared to its peers in the US, UK and Canada.
This is according to Constant Contact’s latest Small Business Now: The State of SMB Marketing report which surveyed more than 1,800 small business owners with less than 100 employees, as well as nearly 2,500 consumers, across Australia, New Zealand, Canada, the United Kingdom, and the US.
It found that the SMBs across ANZ felt more confident in the economy to finish the year than any other region polled.
“We're heading into a busy period and, while owners are confident, it’s vital that shoppers and customers across the region continue to support their local small businesses when they can, even during Black Friday, Cyber Monday and Boxing Day sales,” said Renee Chaplin, VP Asia Pacific for Constant Contact. ”Small businesses make up more than 97 per cent of businesses in Australia, and if they do well, we do well.”
The report also revealed financial pressures causing the most stress to ANZ SMBs today are rising cost of goods (50 per cent) - the most common response across the regions, cash flow unpredictability (41 per cent) - the second most common pressure, and revenue decline (27 per cent).
Despite these clear challenges, the study found that small businesses across ANZ have the most confidence in the economy heading into the holiday shopping season of any region this year, with 67 per cent of respondents saying they were either somewhat confident (57 per cent) or very confident (10 per cent) to close out 2025.
“Yet despite their confidence, the same challenges remain for SMB owners in Australia and New Zealand; they’re often short on time, wearing multiple hats and pushing vital business functions to the backburner, such as marketing,” Chaplin said. “It’s important that small businesses proactively promote themselves if they’re to compete with the scale and visibility of big business.”
The report also revealed that while 50 per cent of ANZ SMBs are currently using AI for marketing, and another 30 per cent plan to use it, 29 per cent say they don’t fully understand how to use AI effectively and 33 per cent are worried about data privacy and security.
“AI tools can help, but while half of small businesses are using it to make their lives easier, the other half isn’t yet, and concerns about proper use and data security seem to be hindering uptake,” Chaplin said.
Challenges remain in ANZ despite feeling prepared for change
When asked if recent global economic events (e.g., inflation, tariffs) affected their business operations, 30 per cent of ANZ SMBs said they had somewhat negatively impacted their business, while 28 per cent said there was no major impact.
It revealed that 68 per cent of ANZ SMBs feel ‘somewhat prepared’ to adapt to unforeseen challenges (political, economic, personnel, etc), while 12 per cent said they were ‘very prepared’. It also found that 64 per cent of ANZ SMBs cited increasing revenue and 56 per cent said expanding their customer base as their most important business priorities.
“Small businesses across the region have faced a number of challenges in the past few years, and really, since the pandemic,” Chaplin said. “But these challenges have created incredibly resilient business owners and operators, and the data shows they’re now more prepared for economic disruption than any other polled region.”
“Heading into the busiest shopping season of the year, it’s vital that consumers not only shop local, but shop small. Small businesses are the backbone of our economy and this period sets many of them up for the year ahead. The data suggests that the vast majority of SMBs are focused on expanding their customer base, and what better time to do it than the upcoming holiday shopping season.”
AI Apprehension in ANZ hasn’t stopped strong adoption and use of new technology
The use of marketing tools that include built-in AI features – such as writing tools, image creation, data analysis, and reporting – are becoming more common among ANZ SMBs, with 15 per cent already using them regularly, 35 per cent currently using them but still learning, and 30 per cent planning to.
In the report, 35 per cent of local SMBs stated the primary reason they use AI-powered tools is to improve efficiency – higher than the other polled regions.
When asked what AI-powered tools were principally being used for, 44 per cent of SMBs in the ANZ region use them for writing emails, subject lines, or social media posts, while 33 per cent create images or other visual content with them.
Yet many ANZ SMBs still hold reservations towards using the technology. These concerns include 29 per cent of local respondents not fully understanding how to use AI effectively, 33 per cent worried about data privacy and security, 26 per cent not confident they can trust the results AI gives them, and 26 per cent concerned about legal and copyright issues.
“AI adoption is certainly on the increase, but of businesses in Australia, smaller businesses stand to benefit the most from its use,” said Chaplin. “It can create measurable efficiencies and help them undertake initiatives they never had the time to do, like marketing. Those not yet using the technology in some form ought to consider AI and other technologies that allow them to lighten their workloads and drive growth while continuing to build their business.”
Many businesses across the globe have felt the impact of AI on their website search results, with some savvy SMBs getting ahead of the significant drop in site visits by optimising for AI tools; 26 per cent of ANZ SMBs state they are currently working on it, which is similar to the UK (27 per cent), and higher than Canada (22 per cent) and the US (17 per cent).
To learn more about the findings from Constant Contact's Small Business Now report, download the full report here.
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ABOUT SMALL BUSINESS NOW
Constant Contact’s Small Business Now series offers a real-world look at what trends and challenges are impacting global small businesses and their customers. It combines thorough research with insights from Constant Contact customers and marketing experts to educate small businesses and provide recommendations about how they can be more successful.
STUDY METHODOLOGY:
Constant Contact’s Small Business Now report surveyed 1,800+ small business owners with less than 100 employees, and nearly 2,500 consumers across Australia/New Zealand, Canada, the United Kingdom and the United States. Statistics from each region were aggregated to determine global trends. All stats are representative of their associated demographics. The survey was conducted by Ascend2 in June 2025.
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