Main results of the survey:
- 63% of micro, small and medium-sized enterprises (MSMEs) agree that adopting online methods has helped sustain their business over the long term.
- In fact, 79% of companies in Australia have a business website and 20% of them use their sites for customer transactions.
- With inflation rising every year, 76% of businesses agree that business costs have increased.
- Despite the economic challenges, 50% of these e-commerce businesses believe that selling online reduces some cost pressure. In fact, 59% agree it drives business growth.
- 61% of small businesses believe Australia is a good hub for doing business.
SYDNEY, July 4, 2022 /PRNewswire/ — As the pandemic slows, Australian small businesses believe going digital will help them sustain their businesses in the future, as revealed in a survey for International MSME Day 2022 by Crazy Domains , a leading provider of hosting and online solutions.
When the COVID-19 crisis caused businesses to shut down around the world, many Australian micro, small and medium-sized enterprises (MSMEs) thrived by embracing digitalization. For example, launching a website (78%), sending professional emails (81%), being active on social media (56%) and leveraging digital marketing (36%).
Businesses have invested more in online connection, spending more $2,500 one year on online solutions, such as websites, domains, web hosting, business email, and marketing services, among others.
Business Sentiments on Digital Transformation
A digital presence has become a top priority for Australian MSMEs. Of those who don’t currently have a website, 68% are willing to outsource website building to professionals, while 32% would do it themselves.
Of those with a website, only 20% currently sell online, while 24% intend to sell online within the next 12 months. It’s no surprise, as brand promotion and a professional image remain among the top reasons for creating a website, along with acquiring new customers.
Meanwhile, most e-commerce businesses believe that selling online plays a key role in growing their business. With inflation rising, expected to reach 6% by the end of the year, 49% of small and medium enterprises (SMEs) are counting on e-commerce opportunities to help reduce cost pressures.
Most Australian businesses are still on the fence when it comes to contactless payment options and buy-it-now-pay-later (BNPL) schemes. Only 32% offer online payments, while 27% say it doesn’t apply to their business. On the other hand, only 4% offer a BNPL service to their clients.
Perspectives amid COVID, economic and political challenges
Looking back, the COVID-19 crisis has affected small businesses in different ways. When it comes to business performance, 25% of MSMEs believe they have achieved better results than 12 months ago. A slightly higher number of 28% believe they have experienced poorer performance, while almost half of SMEs said their business has had the same performance in the past year.
As the country hopefully waits for the pandemic to end, economic and sociopolitical challenges are taunting business for it. Rising inflation caused by an ongoing war in Ukraine strained SME budgets, with nearly 80% seeing increased business costs.
With Australia Operating under a new Federal Labor government for the first time in nine years, many SMEs expect to bear the brunt of this with increased employee wages.
While only a third of MSMEs have a positive view of the country’s economy over the next 12 months, there is a silver lining as 61% of MSMEs consider Australia a good hub for doing business.
The Crazy Domains MSME survey was conducted with a total of 330 respondents, the majority of which are SMEs in the following sectors: consulting/training, professional services, manufacturing, health and social services, education and retail. The survey aims to understand the current state of MSMEs over the past 12 months and their prospects amid the global crisis.
To download a copy of the infographic, click here.
About Crazy Domains
With over 20 years of experience, Crazy Domains is one of the leading online solution providers in Australiaand has become a globally recognized brand through Europe, Asia, New ZealandUK, Middle Eastand United States.
Crazy Domains offers tools and services to SMBs to ease their transition online, such as domains, hosting, servers, security and online marketing. It is one of many reputable portfolio brands of Newfold Digital, a global provider of web presence solutions for small and medium businesses. To find out more, visit crazydomains.com.au.
SOURCE Crazy Domains