High-growth companies across Australia, New Zealand and Asia are driven by technology, according to the 13th annual CPA Australia's Asia-Pacific small business survey.
Here are three key takeaways from the 2021 CPA small business survey of Australian small and medium sized businesses (SMB):
- Innovation is a key factor in SMB growth. However, 35.1% of the survey respondents in Australia did not invest in new technology in 2021, and the majority of those don't plan to invest in tech in 2022.
- Online sales are key to SMB growth. Close to half (44%) of Australian respondents said that online sales accounted for none of the total revenue earned in 2021.
- Technology is key for SMB growth. Indonesian SMBs reported the highest growth in 2021 and attributed it to e-commerce and digitalisation.
In comparison to their counterparts in Asia, Australian SMBs are:
- Less likely to earn revenue online.
- Not as concerned about cyber-attacks.
- Most likely not to offer a choice of digital payment options.
- Second least likely to use social media.
Many Australian businesses aren't comfortable with how digitalisation can change their business model. However, businesses that embrace technology gain new sources of revenue that often lead to growth.
2022 tech trends for Australian small businesses to watch
Digital transformation of your business' processes, products, and services and marketing can be overwhelming for sole traders or family-run firms. Start by learning as much as possible about the different technology investments that fast-growth businesses in Australia, New Zealand and Asia have made to great success.
Social media and profitability trends upward.
The CPA Australia survey found that SMBs that used social media for business purposes – to build awareness, communicate with customers, and sell products and services – grew in 2021.
Online sales are gaining traction among Australian SMBs
In 2021, the number of SMBs in Australia that reported earning revenue from e-commerce grew but hasn't yet reached the level of faster-growing counterparts in China, India and Vietnam.
Digital payment technology is popular, and lucrative
Payment transactions with credit cards, debit cards and electronic fund transfers make up the majority of payments received by Australian SMBs. In contrast, cash payments and digital payments make up a much larger percentage of higher-growth SMBs in China, India and Vietnam.
One last key finding by CPA Australia is that 96.1% of respondent businesses that reported high growth in 2021 also consulted with professionals on how to innovate processes, customer experience, marketing and offerings.
If you have questions about digital transformation, we can help. Learn more about WMC Accounting's business development services for small and medium sized businesses seeking professional advice.