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Despite the rapid digitisation brought on by COVID-19, a new survey shows Australian small businesses have been the slowest to embrace technology in the Asia-Pacific region.
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Australian small businesses remain in the ‘digital dark ages’
23 March 2021
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10 minute read
A CPA Australia survey of 4,227 businesses in 11 markets across the Asia-Pacific found Australian small businesses were stunted by a refusal to embrace technology, as only 22.3 per cent of Australian respondents recorded growth, compared to a survey average of about 46 per cent.
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The survey of businesses in Australia, China, Hong Kong, India, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, Taiwan and Vietnam found that Australian small businesses were the least likely to begin or increase online sales during COVID-19, and the least likely to invest in technology in 2020.
The businesses that recorded growth in 2020 also reported investment in technology, said Andrew Hunter, chief executive at CPA Australia, who believes that Australian small businesses are likely to lose business to overseas competitors if they refuse to transform.
“This digital divide will make Australia’s road to economic recovery longer and tougher than it needs to be,” Mr Hunter said. “If Australian small businesses don’t transform, sales will go to more innovative competitors overseas.”
The survey outlined Australian small businesses as being least likely to use social media, invest in or profit from technology, or review their cyber-security protocols.
“There is a clear link between innovation and performance,” Mr Hunter said. “Our survey shows that growing businesses are more likely to use new technologies, e-commerce and social media. These are areas in which Australian small businesses performed poorly.”
Compared to their APAC counterparts, Australian small businesses reported the highest rate of inaction in response to the pandemic, too, with 36 per cent of businesses making no major changes as part of their response plan, and only 17 per cent seeking government support and subsidies.
Mr Hunter said the results were disappointing, as other markets set a high standard for making innovative digital changes to grow their businesses and boost their earnings. But that, in part, he said, comes as a result of insufficient government support.
“Clearly, Australian small businesses need more help than they’re getting to leave the digital dark ages behind,” he said.
“While businesses should play an active role in digital transformation, the government needs to play a bigger role in helping businesses manage this change.
“Ad hoc financial support for digital transformation isn’t sufficient. There needs to be a significant commitment of public funding to help Australian small businesses transform.”
Australian small businesses are expected to underperform compared to others in the APAC region again in 2021, according to the survey. Only 41.4 per cent of Australian small businesses are expected to record growth this year, compared to the market average of 60.8 per cent.
Innovation is also expected to hold them back, with only 6.7 per cent of Australian small businesses likely to introduce a product or service unique to their market — or the world — in 2021, compared to a 23 per cent market average.
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