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MYOB SPECIAL REPORT: Aussie Business Online Performance

27 Jul 2011

Businesses with a website report greater confidence, revenues & growth - but threat of online competition being underestimated.

The MYOB Business Monitor Online Special Report released today, reveals that the number of Aussie businesses with a website has increased to 39% (up from 35% in November 2010) with a further 22% planning to create a website within the next 12 months. It also reveals that businesses with a website are more successful – with more reporting a revenue increase in the past 12 months (32% vs. 22% without a website), more reporting increased sales in their pipeline in the next three months (48% vs. 36%), and greater confidence that their revenues will increase in the coming 12 months (40% vs. 28%) – than those without a website.

The MYOB Business Monitor Online Special Report also found that businesses with a website were more intent on growing their business in the next 12 months than those without (58% vs. 49% without a website).  

Tim Reed, CEO MYOB, said, “It’s great to see the numbers of Aussie businesses getting online increase and even more pleasing to see that 32% of those businesses with a website are selling products and services online.”

How connected is Australia (State by State)?

REGION % OF BUSINESSES WITH A WEBSITE
Western Australia 43%
New South Wales 41%
Victoria 40%
Queensland 39%
Tasmania 35%
South Australia 34%

The percentage of businesses with a website varies significantly between the States. West Australian business owners are leading the way online, closely followed by New South Wales and Victoria.

The MYOB research didn’t paint a completely rosy picture of Aussie business online. The report found a majority of Australia businesses (57%) still don’t promote or sell products and services online, 45% of businesses without a website said they don’t intend to create a website for their business in the future at all and 26% don’t believe a website would benefit their business at all.

Also concerning were the findings that 47% of Aussie businesses don’t feel threatened by the growth in global online commerce and a third (33%) believe the NBN won’t increase the amount of global internet competition.

“These findings indicate there are still a large number of Aussie business owners who are not yet convinced of the benefits of getting online; and even if they are convinced a large number don’t intend to act on that knowledge. We encourage all businesses to think seriously about building an online presence,” Mr Reed added.

“Today consumers look online first when making buying decisions.  If your business can’t be found via a search engine it’s as if you don’t exist.  Around the world many business leaders understand this.  While only 26% of business owners believe their competitors are ahead of them when it comes to the online economy, I’m concerned for Australia’s future international competitiveness if business owners don’t do more to embrace the online economy.  It’s important Aussie business owners take action now to make sure they don’t lose market share to global competitors.”

One of the biggest challenges for Aussie businesses getting online appears to be having the skills and knowledge to take their business online.  The report reveals one in three businesses (33%) believe they are behind the times in using the internet for business,  35% believe they don’t use the internet well enough for marketing and 31% believe they don’t use online search engines well enough to market their business.

“Aussie business owners told us they don’t feel they have the skills and don’t believe they are using online tools effectively.  That’s why the Getting Aussie Business Online initiative is designed to make it as easy as possible for business owners to build a website.  In just 15 minutes any business owner can build a professional website. To date, more than 18,000 businesses have signed up for a free website and domain name,” Mr Reed commented.

Other key insights from the MYOB Business Monitor Online Special Report include: 

  • 62% of businesses are using online banking
  • 36% of businesses pay suppliers bills online
  • 22% of businesses use social media for their business
  • 20% use Skype or VoIP to make free calls
  • 23% use email marketing to attract customers
  • 19% of businesses accept online payments

“Overall the report card has seen a positive shift in the numbers of businesses getting online but it is very concerning to see nearly half of our local businesses are not focused on the threat posed by international competitors online.  The longer businesses avoid the reality of the digital economy, the greater the likelihood that they will condemn themselves to lower revenue growth or even revenue decline,” Mr Reed concluded.

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About the MYOB Business Online Special Report

The MYOB Business Online Special Report is a nationwide survey of 1,000 Australian business owners, across a range of small and medium businesses, from sole traders to mid-sized companies, and representing the major industry sectors. This Special Report is designed to research key areas of online business performance, including profitability, cash flow and pipeline work.

 

For further statistics, comment or other information please contact:

Kristy Sheppard
MYOB Public Relations & Corporate Affairs Manager
02 9089 9068 / M: 0407 450 860 / kristy.sheppard@myob.com

About MYOB

Established in 1991, MYOB is Australia's largest business management solutions provider. It makes life easier for approx. 1.2 million businesses across Australia and New Zealand, by simplifying accounting, payroll, tax, practice management, CRM, websites, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly in cloud computing solutions, and now spends more than AU$30 million annually on research and development. In 2013, MYOB expanded its offerings with the acquisition of accounting solutions provider BankLink. For more information, visit myob.com.au.