I N F O G R A P H I C
I N F O G R A P H I C
AIRWALLEX REPORT REVEALS 92 % OF AUSSIE STARTUPS STRUGGLE WITH THEIR FINANCIAL OPERATIONS
irwallex , the Australiafounded leading financial
A platform for modern businesses , has released The Startup Financial Confidence Report which reveals the opportunities and business challenges facing Australian founders right now .
Amid a challenging economic backdrop of high inflation , rising interest rates and ongoing economic uncertainty , the report reveals founders are turning to unconventional sources for growth and financial advice . From family to professional networks , founders are looking beyond financial professionals to accelerate their business growth . In addition , 87 % of founders have concerns with their bank or financial provider , with 37 % saying the flexibility to access funds is a deciding factor when considering a business bank or provider .
Further findings from the report include :
• 92 % of founders have concerns about their business ’ financial operations : The biggest concerns that founders shared involved maintaining compliance , with their top worry being managing local regulations .
• 33 % of founders , one in every three , are supported by the Bank of Mum and Dad . Parents aren ’ t just funding property purchases for the next generation , they ’ re also bankrolling businesses , as we stand on the precipice of the ‘ biggest exchange of gifts and inheritances in human history ’ ( The Australian , 2024 ).
• 40 % of founders are looking to their professional networks for financial advice , second only to external finance consultants ( 41 %). Almost all founders ( 98 %) are seeking financial advice for their businesses .
• The most common complaint from founders about banks / financial providers was the lack of financial products and services designed for their needs as a startup . Almost half ( 44 %) of founders suggested this was a major frustration , followed by high fees ( 37 %), poor understanding of needs as a startup ( 37 %) and inadequate flexibility to access funds ( 35 %).
• Nearly four in five ( 78 %) founders said they are likely to expand their business globally in the next 12 months . However , 90 % say there are limitations to them doing so .
Taylor Fox-Smith , Head of Community Partnerships at Airwallex , said that , despite the thriving sector , there ’ s a confidence gap when it comes to steering the finances of a startup .
“ This unique research is critical in understanding the needs of this diverse community – and more importantly , identifying what support is needed to help these founders thrive in their startup journeys .
“ In today ’ s volatile economic climate , where funding cycles are tightening and global markets are uncertain , these findings not only illuminate the current challenges but also show the other side of the coin – highlighting opportunities for startups . And there are many – such as the flexibility that comes with using global accounts and mitigating traditional banking restrictions through international payment rails to enable global growth .
“ With more than 1,200 Aussie startups now part of the Airwallex for Startups programme , we know there ’ s a real appetite from founders for support across various areas such as funding and operations . We are confident these insights will empower an ambitious cohort of current and future startups and the next generation of Australian unicorns .” To download The Australian Startup Financial Confidence Report , visit here . �
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