New Technology Allows Small Australian Businesses to Survive and Thrive
Adapting to new technologies such as having an online presence was the way how small businesses in Australia coped with the hard times.
A survey of 1,031 small business owners made by American Express showed that the change could be done by shifting to new product range and services offered which was what 67 per cent of the entrepreneurs did, changes in target customer audience which 47 per cent did and changes in business structure which was what 25 per cent underwent.
"While the majority of small business owners acknowledge that both the global and Australian economies will impact their business in the next 12 months, there is a prevailing sense of getting on with the job among operators in this sector. Australian small businesses are resilient and are open to changing with the times," American Express Head of Small Business Services Jason Fryer said in a statement.
By reinventing themselves, up to 10 per cent of the small businesses became so radically different from their original set up. Most or 82 per cent of businesses that have adapted to major changes have turnover ranging between $200,000 and $2 million. The figure suggests financial benefits for enterprises that adapt to market conditions.
"In a climate of economic uncertainty, small businesses are looking at any external changes that affect the overall health of the business and are responding accordingly. Australian small business owners understand that change is necessary to survive and prosper," Mr Fryer added.
Evidence of the financial reward of changing is that 41 per cent of the survey respondents said they expect their profit to remain the same, 36 per cent even anticipate profit expansion and 62 percent plan to invest more in their enterprise over the next 12 months.
Another American Express study showed that 81 per cent of Australian consumers believe small business owners look after their clients better than large businesses. That would be good for the small business owners because Aussie shoppers will share with an average of 23 persons their poor customer service experiences within their social circle. In comparison, they will tell their good experiences only to 10 people.
"Delivering good customer service is particularly important for small businesses because unlike larger businesses, each customer lost through poor service has an immediate impact on the bottom line," Dynamic Business quoted Mr Fryer.
Small businesses make up about 96 per cent of the businesses throughout Australia.
