Small and medium-sized businesses (SMBs) in Australia have had a challenging first quarter in 2025, but despite economic, political, and technological uncertainties, confidence remains strong.

According to the latest VistaPrint 2025 SMB Report, 65% of SMB owners struggled in the first three months of the year, navigating concerns around inflation, a potential recession, and the rapid rise of artificial intelligence (AI). However, in true Australian fashion, SMBs are pushing forward with optimism—50% describe their outlook as positive, excited, or uplifted.

Challenges and Opportunities in 2025

The Australian business landscape in 2025 is marked by economic concerns, an upcoming federal election, and the rise of AI-driven content.

• Inflation (43%) and recession fears (38%) remain top concerns.
• 2-in-5 SMBs (39%) say AI makes it harder to stand out, with concerns around the lack of human touch (26%), data security (21%), and accuracy of AI-generated information (21%).
• 38% of SMBs expect the election to have a positive impact on their business, while 27% believe it won’t change much.

Despite these headwinds, Australian business owners are showing resilience and adaptability, looking for ways to differentiate their brands and connect with customers in an increasingly AI-driven and digital-first world.

The Battle to Stand Out in a Crowded Market

The rapid growth of AI-generated content and social media saturation is making it harder for brands to cut through the noise.

• 62% of SMBs believe AI-generated content is or will dominate media and social channels.
• 48% say AI-generated content makes it harder to compete for share of voice.
• 44% feel social media also contributes to brand visibility challenges.

With an increasing amount of generic, AI-driven content flooding digital platforms, many SMBs are turning to authenticity and personalisation as key differentiators.

The Power of Personalisation and Branding

SMBs overwhelmingly believe in the power of customer engagement and personalisation to stay competitive, with 66% citing these as their main branding strategy.

Other key strategies include:

• Authentic storytelling (35%) to build deeper connections with audiences.
• Investing in physical marketing materials, alongside digital and social media, to create lasting impressions beyond the digital space.

According to Marcus Marchant, CEO of VistaPrint:

“Despite the challenges facing small businesses in 2025, it’s encouraging to see that optimism remains strong. SMB owners are resourceful, and they recognise that strong branding, personalised engagement, and authenticity are key to standing out in today’s evolving landscape.”

Adapting to a Rapidly Changing Market

As AI continues to shape marketing and business operations, Australian SMBs are proving that adaptability and innovation are essential for long-term success.

Business owners are prioritising:

• Great customer service to build trust.
• Transparency and authenticity in their branding.
• Delivering consistently high-quality products and services.

Interestingly, while influencer marketing has been a major trend in recent years, SMBs ranked it as the least effective strategy for building trust.