Commonwealth Bank of Australia (ASX: CBA) shares are down 0.7% during trade on Tuesday.
For some context, the S&P/ASX 200 Financials Index (ASX: XFJ) is down 0.9% at this same time.
Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $96.06. CBA shares are currently changing hands for $95.43 apiece.
That's the share price action.
Now here's what's happening with Australia's small businesses.
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What's keeping small business owners awake at night?
According to new research, released by CBA this morning, 33% of Australia's small businesses expect to see consumer demand slide. And the full impact of fast-rising business costs has yet to fully trickle through for many of the surveyed smaller companies.
Declining consumer demand amid high inflation is their top concern, at 36%. Meanwhile, 31% of respondents listed the increasing cost of business insurance as their primary concern, while 28% cited higher transportation and logistics costs.
But CBA reported that many small businesses, both private and ASX small-cap shares, are working to get ahead of the curve before any potential slowdown.
33% of small Aussie businesses have already cut spending on non-essentials. And 32% have adjusted their personal spending. 27% of respondents also said they're now more disciplined around budgeting and expense tracking.
"While inflation is creating challenges for many small business owners, the sector remains focused on being prepared," Mike Vacy-Lyle, CBA's group executive, business banking, said.
"We're seeing customers respond in pragmatic ways by making adjustments to their operations in response to an anticipated reduction in consumer demand," he added.
The research showed that small business owners aren't as worried about the fast-rising cost of living as consumers. But the share of owners expressing concerns has increased since CBA's last survey in October.
How have CBA shares been tracking?
As you can see in the chart below, CBA shares have followed the benchmark index lower since February, leaving the share price down 6% in 2023.
