Research by Allianz Australia reveals the resilience and agility of small businesses despite the devastating impact of COVID-19 over the last six months and a promising commitment from Aussies to support, shop and spend to aid their recovery.

The research found that 84% of Australian small businesses, the largest proportion in Australia, have faced financial, operation and emotional challenges as a result of the pandemic.

It also adds that half of all these small businesses believe their cash reserves will only sustain them until December, which equates to just over 1.1 million businesses. Just under two-thirds are uncertain about their future and if they can last in the long-term.

On top of using cash reserves, 22% are reducing staff hours and 19% enabling remote working for employees.

In fact, according to the study, one in five businesses have altered operations entirely, ranging from adding new delivery services to creating unique discounts for pensioners and those unemployed; and even providing materials that Australians can make their own soap and sanitation products from. Others have invested in digital operations (18%) leading to improvements in web, social media and e-commerce, making it easier to help more Australians support small businesses in new ways.

Changing businesses operations can have a larger impact than just goods and services, it can affect people’s insurance policy. Allianz Australia chief market manager Nick Adams says he wants to make sure Allianz’s small business customers continue to have the peace of mind knowing they are covered should anything go wrong, and is encouraging businesses to check their policy still meets their needs.

“We recognise and applaud the entrepreneual spirit of small businesses and how they have both adapted and ‘been there’ for Australians during this time; now we want to be there to help small businesses in their recovery. We encourage any small business customer who has made changes to contact us for a free policy health check to make sure their policy still meets their needs.”