Nearly 500,000 small businesses across Australia are currently trading with little to no digitalisation measures, while 34 percent of business who have were found to be more profitable as a result.
On Tuesday 11th May MYOB published the findings of new research which discovered that 466,062 small and medium-sized businesses have been left in the dust due to digitalisation, and most of them have stated that they felt deterred by adopting digital tools for fears the cost would outweigh the benefits.
The recently published research revealed that 24 percent of SMEs are worried new technology is too expensive and a further 24 percent don’t have enough time to set it up.
Of the businesses who digitised during the covid-19 pandemic, 39 percent found themselves to be more productive and 34 percent were more profitable. 85 percent of businesses surveyed said they were able to keep their business running thanks to digital tools.
Findings from the research outlined that one in five of the businesses surveyed, which make up about 20 percent of a 2.29 million-strong sector, have yet to engage with “critical” digital tools to complete day-to-day tasks such as supplier management and compliance.
For the one in five SMEs at risk of being left in the dust, a tax incentive that is easy for businesses to engage with, that is pointed out to them by their accounting and bookkeeping advisors with whom they speak regularly, will remove a significant barrier to achieving digital adaptation.
Research revealed that 27 percent of respondents believed that an incentive, such as a tax deduction, would help them get started.
On Tuesday 11th May, the federal budget included a $1.2 billion digital spend, $500 million of which was allocated to the overhaul of government digitisation efforts, and only $28 million to bolstering digitisation efforts across the small business sector.
The ambitious $1.2 billion technology package aims to have Australia’s economy perceived as a “modern and leading digital economy” by 2030.
The Australian Government has announced that it intends to make a huge investment in digital education for works, along with artificial intelligence, incentivising investment in game, refreshing government services, digitising SMEs, data management, emerging aviation technologies and cyber security.
Of the $1.2 billion, more than $100 million plans to be spent on a new pilot program that aims to helping Australians build their digital skills. The investment will result in an introduction of word-based cadetships to drive a “cyber workforce” and scholarships for emerging technology graduates.
An additional $124.1 million will be spent on artificial intelligence enterprises, such as; a National Artificial Intelligence Centre, led by CSIRO Data 61, bolstered by a $50 million investment in government cyber-security enhancement.
The Treasury believes that a strong digital economy is key to an economic future that encourages job creation and wage growth. Australia’s Digital Strategy will enable businesses across the country to capitalise on the opportunities that these new technologies are creating. These important digital adoptions will improve Australia’s competitiveness on a global scale and lift the productivity of Australia’s workforce.
The government will allocate $200.1 million for a complete revamp of myGov in a bid to improve its user experience so users can find what they need easier, supplemented by an additional $301.8 million bumper to the My Health Record and digital identity systems.
Small businesses are set to receiving a $12.7 million boost as the government expands the Australian Small Business Advisory Service. The sector will also receive a $15.3 million investment in e-invoicing to encourage wider uptake, as the government contemplates a mandate through a phased approach starting with large businesses.
This is set to include working with payment providers including; Visa, eftpos, Mastercard and New Payments Platform Australia to integrate e-invoicing into the main payment methods used by businesses.
Educational activities will also be undertaken to raise business awareness of the benefits of implementing e-invoicing, and are likely to include cost savings, faster payment times, a reduction in errors and a reliable and secure transaction of data.