Aug 3, 2026 – 5.00amGiven that war is still raging in the Middle East, interest rates are high, and consumers remain under pressure, investors could be forgiven for wanting to steer clear of Australia’s smallest companies.These businesses – think technology start-ups or gold explorers – typically struggle during periods of higher borrowing costs because of their heavier reliance on floating-rate debt, which can reduce profit margins and curb their ability to fund growth.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles