Early adopter firms have sunnier outlooks

Around half of Australian small businesses are confident they will see revenue growth over the next 12 months, with willingness to adapt and adopt to technology a key indicator of business confidence, according to a CBA survey.

The bank’s latest Small Business Barometer finds that while sentiment among small businesses has declined nine percentage points compared to the previous half-year, they remain positive that revenues will increase despite a mixed economic outlook.

Those companies classed as early adopters of technology are the most confident about future business conditions (47%) and more likely to expect business revenue growth (61%) compared to mainstream adopters (30% and 44% respectively) and late adopters (25% and 38% respectively).

According to the survey, small businesses are overall prioritising hardware as their top technology investment category this year (42%).

Early adopters are more likely to be investing in mobile technologies (38%) and sales and marketing software (31%) than their less tech-savvy counterparts.

“In Australia, start-ups are usually the types of businesses known for leveraging technologies to futureproof strategies and their financial position,” CBA General Manager for Small Businesses Karen Last said.

“However, tech adoption is not exclusively associated with new businesses. What we’re seeing is a shift in certain attitudes and behaviours around technology investment — particularly in mobile and cloud technology — and planning across the board.”

Image courtesy Commbank.

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