Small businesses that are highly engaged with the web are two times more likely to be growing and earn two times more revenue per employee than those with low engagement. Yet more than 35% of small businesses in Australia use virtually no internet at all.
These new figures are from “Connected Small Businesses”, a report released today by Deloitte Access Economics and commissioned by Google Australia. The report provides insight into the use of the web by Australia’s small and medium-sized businesses, which employ more than seven million people and are responsible for half of private sector economic activity.
“Small businesses making full use of the internet enjoy better business outcomes, with a 20% increase in annual revenue,” says Ric Simes, Partner at Deloitte Access Economics. “These small businesses also have better growth prospects, more diversified sources of revenue and a larger customer base.”
The report shows that small businesses with high digital engagement:
- Are job creators, being four times more likely to be hiring than those with low engagement
- Are two times more likely to be growing and earn two times more revenue per employee
- Are three times more likely to have growth as a business objective
- Are three times more likely to be increasing investment in digital over the next year
The research – which surveyed 500 small businesses found that only 16% of small businesses have high digital engagement, with more than one-third of businesses (35%), using virtually no internet at all.
“There’s a long way to go until all small businesses are recognising the potential of the web,” says Jason Pellegrino, the Director of Google Australia. “It’s now more important than ever for small business to be online and be found. The potential upside for productivity and our economy is huge.”