THE CPA AUSTRALIA
ASIA-PACIFIC
SMALL BUSINESS
SURVEY 2015
AUSTRALIA REPORT
2 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
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3 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
OVERVIEW
CPA Australia Asia-Pacific Small Business Survey 2015 is the sixth in a series of annual reports measuring small
business confidence, the drivers of confidence, technology uptake and access to finance by small businesses. The
data is compared across the eight economies included in this survey and over time.
In total, 2932 participants completed the survey, including 510 from Australia, 610 from Mainland China, 265 from
Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310 from
Vietnam.
The online survey was conducted with a random sample of small business owners/managers between 24
September and 14 October 2015. The sample was obtained through panel providers. To qualify for the survey,
participants were required to be an owner, a senior manager (defined as being a director, a principal, a CEO, a
CFO, a senior manager or a managing director) or a qualified accountant of a business with fewer than 20
employees.
4 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
SUMMARY OF AUSTRALIAN RESULTS
Australian small businesses should focus more on innovation, e-commerce, social
media, exporting and improving business management.
Australian small businesses are significantly less likely than small businesses from Asia to be innovating, using
digital technologies and exporting. With a more competitive and innovative business sector fundamental to higher
levels of growth and jobs creation, the results help explain why the Australian government has recently placed
innovation at the centre of its policy discussions.
The survey results clearly show that Australian small businesses are well behind small businesses from Asia when
it comes to innovation. The percentage of Australian small businesses that definitely expect to undertake
innovation in the next 12 months through the introduction of a new product, service or process that is unique to
Australia or the world is troublingly low in comparison with Asia (5.1 per cent of Australian small businesses
definitely expect to innovate compared with 28.3 per cent of small businesses from Asia).
Australian small businesses are also well behind their competitors in Asia when it comes to:




investing in their e-commerce presence (only 8.2 per cent of Australian small businesses expect to grow their
e-commerce presence to a large extent in the next 12 months compared with 41.3 per cent of small businesses
in Asia)
growing revenue from overseas markets (only 6.1 per cent of Australian small businesses expect their revenue
from overseas markets to grow strongly in the next 12 months compared with 24.0 per cent of small
businesses in Asia)
using social media in their business (50.2 per cent of Australian small businesses used social media in their
business compared with 92.6 per cent of small businesses from Asia)
generating revenue from online sales (33.0 per cent of Australian small businesses generate some revenue
from online sales compared with 82.3 per cent of small businesses from Asia).
Australia’s small business sector is clearly being beaten in innovation, technology uptake and exporting by small
businesses from Asia. This is having broader consequences for the economy. As the survey results demonstrate,
businesses that are not innovating, not growing their e-commerce presence, not using social media and not
exporting are significantly less likely to be growing and creating jobs than those that are.
The lack of focus on e-commerce and social media means that many Australian small businesses are denying
themselves access to the large and growing online marketplace both in Australia and overseas. Many may also be
unnecessarily exposing themselves to greater competitive pressure from more nimble and tech-savvy competitors
from Australia and elsewhere.
Despite Australian small businesses being somewhat pessimistic about the expected performance of Australia’s
economy over the next 12 months, businesses are more optimistic about their own growth prospects, with 57 per
cent expecting their business to grow over the same period, 10 percentage points higher than in the last survey but
still a significantly lower result than many of the countries of the region.
The lack of optimism amongst many Australian small businesses, paucity of innovative small businesses and poor
levels of technology uptake are impacting jobs creation by the sector, with only 11.8 per cent of Australian small
businesses adding to their employee numbers in the past 12 months compared with 40.7 per cent of small
businesses from Asia.
5 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
The $20,000 instant asset write-off budget measure has had some success, with over 30 per cent of Australian
small businesses stating that the budget announcement had some influence over their decision to purchase an
asset since the budget in May. More than a third of respondents indicated that the instant asset write-off will have
some influence over their purchasing decisions over the next 12 months.
Like many in the region, the Australian economy is in transition. Unlike many other countries that are recovering
from the global financial crisis, Australia’s transition is mainly about searching for new sources of growth as the
mining boom fades. The role of innovative, dynamic and outward-focusing businesses including small businesses
is central to this transition.
If Australia’s small business sector is to play a big role in this economic transition, then there is much to do. These
results demonstrate that it is absolutely right for the Australian Prime Minister and his government to have such a
strong focus on innovation and that innovation policy must include a strong focus on the small business sector.
Other results from the survey
Demographics



Australian small businesses and their owners are typically significantly older than their competitors from Asia
and are smaller, with most preferring to have fewer than five employees.
There is a strong correlation between younger business owners and those businesses that expect to grow, sell
online, use social media for business purposes and innovate through the introduction of new products,
processes or services.
Attracting more young Australians to own small businesses should contribute towards a more innovative,
growing, outward-looking small business sector that is creating more jobs.
Improved business management


Only a small percentage of Australian small businesses (10.4 per cent) found that improved business
management had a major positive influence on their business over the past 12 months compared with the
average for Asia (30.6 per cent).
The survey results establish that businesses who found that improved business management had a major
positive impact on their business are much more likely to be growing.
Increasing costs and competition


Australian small businesses were much less likely to select increasing costs and competition as having a major
detrimental impact on their business than businesses from Asia.
The more competitive environment that businesses in Asia are facing is one of the factors that is driving them
to place significantly more focus on innovation, e-commerce and exporting than Australian small businesses.
Access to finance

For those Australian businesses that sought finance in the past 12 months, access to finance was more likely
to be easy than not (54.4 per cent found it easy or very easy to access finance in the past 12 months, which
was above the average for the survey and up from last survey’s results).
6 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT



Relatively easy access to finance is not translating into increased demand for external finance (27.1 per cent of
Australian small businesses required access to finance in the past 12 months compared with the average for
Asia of 72.7 per cent).
For those that sought finance, banks are by far the major source of that finance (52.2 per cent stated that
banks were their major source of finance compared with the survey average of 43.9 per cent).
Australian small businesses are less likely than small businesses from Asia to have sought finance from an
investor and instead are more likely to use their own personal resources to meet their financing needs.
7 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
MAJOR FINDINGS FOR AUSTRALIA
Innovation is a key driver of growth, job creation and exporting, yet only a small
percentage of Australian small businesses expect to innovate compared with
small businesses from Asia.
Small businesses with an e-commerce presence are more likely to be
growing and creating jobs, yet the number of Australian small
businesses generating revenue from online sales lags well behind Asia.
Small businesses that expect to grow revenue from exporting are
more likely to be growing and creating jobs, yet very few Australian
small businesses export.
Small businesses that use social media for business purposes
are significantly more likely to have grown, yet the number of
Australian small businesses using social media lags a long way
behind Asia.
Australian small businesses were the least likely to report that their
business grew and took on additional employees in the past 12
months.
Accessing finance remains relatively easy for a majority of Australian
small businesses; however, the number of businesses seeking external
finance remains low.
The $20,000 instant asset write-off budget measure influenced some Australian
small businesses to purchase assets.
8 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
KEY SURVEY FINDINGS FOR AUSTRALIA
INNOVATION
Innovation1 is a key driver of growth, job creation and exporting, yet only a small
percentage of Australian small businesses expect to undertake it compared with small
businesses from Asia.
Small businesses that in the next 12 months will definitely introduce a new product, service or
process that is unique to their market or the world2
Indonesia
45.8%
China
31.6%
Malaysia
29.0%
Vietnam
26.1%
Hong Kong
17.7%
Singapore
New Zealand
Australia
1
15.2%
6.8%
5.1%
Innovation, for the purpose of the survey, is taken to be the introduction of a new product, service or process that is unique to a market or the
world.
2
All data for China excludes Hong Kong, which is shown separately.
9 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
The relationship between innovation and jobs creation, business growth and exporting
Percentage that expect to
definitely introduce a
product, service or
process that is new to
their market or the world
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
EXPORTING
Expecting revenue from overseas sales to grow strongly in the next 12 months
NOT expecting to grow their revenue from overseas sales in the next 12 months
10 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
Innovation is a core driver of business growth and competitiveness, yet only a small percentage of small
businesses in Australia indicate that they have an innovative culture in comparison with small businesses from
Asia.
In essence, Australian small businesses are being out-innovated by their competitors from Asia, especially by small
businesses from Indonesia, China and Malaysia.
With the small focus on innovation likely to be impacting Australia’s competitiveness, job creation and growth, it is
easy to see why the Australian government has such a strong focus on innovation and why it is proposing to do
more to encourage innovation. As a recent OECD paper on innovation stated, ‘in the long run, it is difficult to
imagine growth without innovation’.
The OECD estimates that innovation can contribute up to 50 per cent of economic growth depending on the
3
country, the level of economic development and the phase of the economic cycle. As Australia transitions towards
a knowledge economy, such an estimate and the poor results from this survey highlight why the Australian
government is absolutely right to have innovation as a core policy focus. It also puts on notice that turning
innovation by small businesses from the exception to the rule will take time and the recent National Innovation and
Science Agenda is an important step in a long process.
Businesses are also more likely to definitely expect to undertake innovation in the next 12 months through the
introduction of a new product, service or process that is unique to their market or the world if they:
 have a business owner/manager aged under 40
 have between 5 and 19 staff
 are from the banking, finance and insurance sector, and the manufacturing sector.
KEY FINDING
Innovation is a core driver of economic growth, business growth, job creation and exporting. We suggest that
Australian small businesses should place significantly greater focus on innovation and that the government act
quickly to implement its National Innovation and Science Agenda.
3
OECD Innovation Strategy 2015: An Agenda for Policy Action, OECD Publishing, Paris, p. 4
11 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
E-COMMERCE
Small businesses with an e-commerce presence are more likely to be growing and
creating jobs, yet the number of Australian small businesses generating revenue from
online sales lags well behind Asia.
Small businesses that generated revenue from online sales
Average for Asia
82.3%
New Zealand
37.0%
Australia
33.0%
12 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
The relationship between e-commerce and business growth, jobs creation and exporting
Percentage that expect to
grow their e-commerce
presence to a large
extent
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
EXPORTING
Expecting revenue from overseas sales to grow strongly over the next 12 months
NOT expecting to sell into overseas markets in the next 12 months
13 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
Small businesses from Australia were also well behind their peers and competitors from Asia on generating
revenue from online sales. This digital divide is only likely to grow as small businesses in Asia are significantly
more likely to expect to grow their e-commerce presence in the next 12 months than businesses from Australia.
With the survey results showing that small businesses that are selling online and seeking to grow their e-commerce
presence are significantly more likely to be growing and creating jobs, it is easy to see why the Australian
government is taking action to support and encourage innovation, including e-commerce.
Disappointingly, a very large percentage of businesses that do not generate any revenue from online sales do not
intend to invest in establishing an e-commerce presence in the next 12 months. While online sales are not relevant
for all businesses, when you combine the results that show a strong connection between e-commerce and growth,
and growing digital penetration and literacy of customers, it would be wise for all businesses to investigate
establishing and growing their e-commerce presence.
Small businesses are also more likely to earn income from online sales where:




they have between 5 and 19 staff
the business has been established for less than 21 years
the respondent is aged under 40
the business is from the manufacturing sector.
KEY FINDING
With the results showing businesses making online sales are significantly more likely to be growing and creating
jobs, we suggest that Australian small businesses consider making a larger investment in e-commerce. Federal
and state governments should continue to encourage and support businesses to develop and enhance their ecommerce presence.
14 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
SMALL BUSINESS AND EXPORTING
Small businesses that expect to grow revenue from exporting are more likely to be
growing and creating jobs, yet very few Australian small businesses export.
Small businesses expecting revenue from overseas sales will grow strongly in the next 12
months.
Average for Asia
24.0%
New Zealand
7.1%
Australia
6.1%
15 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
The relationship between exporting, and jobs creation and business growth
Percentage that expect
their revenue from
exporting to grow
strongly
EMPLOYEE NUMBERS
Expecting to increase employee numbers in the next 12 months
NOT expecting to increase employee numbers in the next 12 months
BUSINESS GROWTH
Expecting to grow their business in the next 12 months
NOT expecting to grow their business in the next 12 months
Small businesses from Australia are also well behind their competitors from Asia when it comes to expecting to
earn more revenue from exporting in the next 12 months.
Australian small businesses therefore rely significantly more on their domestic market than their competitors from
Asia. This not only limits the growth potential of those businesses but increases their risk exposure should the
Australian economy go into recession.
Exporting also has other benefits, including exposing the business to new ideas from different markets. This lack of
exposure to other markets may be contributing to a lack of innovation by Australian small businesses.
With the survey results showing that small businesses that are forecasting their revenue from exporting will grow
are more likely to see their business growing and creating jobs, it is easy to see why governments across the
region are taking action to support and encourage trade through initiatives such as the China Australia Free Trade
Agreement.
16 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
Small businesses are also more likely to expect strong growth in their earnings from overseas in the next 12
markets if:




the business is from the manufacturing sector
the business has between 5 and 19 employees
the respondent is aged under 50
the business has been established for less than 21 years.
KEY FINDING
With the results showing small businesses that expect revenue from exports to grow in the next 12 months are
significantly more likely to expect their business to grow and increase employee numbers, it is important for
businesses to consider exporting as part of their business strategy. The Australian government should consider
increasing their support for Australian small business exporters.
17 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
SOCIAL MEDIA
Small businesses that use social media for business purposes are significantly more
likely to have grown and to be from Asia than from Australia.
Small businesses that used social media in their business
Average for Asia
92.6%
New Zealand
56.5%
Australia
50.2%
Small businesses from Australia remain well behind their competitors from Asia when it comes to using social
media in their business. While slightly more Australian small businesses are using social media this year compared
with last year, the result is still disappointing.
With businesses using social media being significantly more likely to be growing, and with customers being
increasingly likely to seek to communicate and transact with businesses via social media, the lack of a social media
presence limits a business’s ability to attract, retain and transact with customers, and may impact their brand and
their ability to grow their business.
Those that use social media use it for a variety of purposes, including communicating with existing customers,
promoting their business to potential customers, and selling their products or services.
Small businesses are significantly less likely to be using social media for business purposes where:
 the respondent is aged 50 or over
 the business has been established for over 20 years
 the business has four or fewer staff.
18 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
KEY FINDING
With the results showing that small businesses that are using social media are significantly more likely to be
growing, it is important for businesses to consider creating or enhancing their social media presence. Federal
and state governments should consider doing more to encourage and support businesses to use social media in
their business.
19 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
JOBS AND SMALL BUSINESSES
Australian small businesses are the least likely to be increasing employee numbers.
Small businesses from Australia and New Zealand that increased employee numbers – a
comparison with the average for Asia
Average for Asia
40.7%
New Zealand
16.4%
Australia
11.8%
20 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
Relationship between jobs creation and business growth, innovation, exporting and e-commerce
Percentage that expect to
increase employee
numbers in the next 12
months
BUSINESS GROWTH
Expecting to grow in the coming 12 months
NOT expecting to grow in the coming 12 months
INNOVATION
Definitely expecting to introduce a new product, service or process unique to their
country or the world
NOT expecting to introduce a new product, service or process unique to their country
or the world
EXPORTING
Expect to grow export revenue strongly
NOT expecting to sell into overseas markets
21 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
E-COMMERCE
Expect to grow their e-commerce presence to a large extent
NOT expecting to grow their e-commerce presence
As in previous years, small businesses in Asia, particularly businesses from Indonesia, Vietnam and China are
significantly more likely to have increased employee numbers in the preceding 12 months than Australian small
businesses. This trend is expected to continue in the next 12 months.
Over the next 12 months, businesses that expect to increase employee numbers are also significantly more likely
to:
 intend to significantly increase their e-commerce presence
 strongly grow their revenue from overseas sales
 definitely introduce a new product, service or process.
Small businesses are also more likely to expect to increase employee numbers over the next 12 months if:
 the business is in the manufacturing, accommodation or food services industry
 the business has between 5 and 19 staff
 the respondent is aged under 40.
KEY FINDING
A stronger focus on innovation, e-commerce and exporting should lead to more Australian small businesses
creating jobs.
22 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
BUSINESS AND ECONOMIC CONDITIONS
Australian small businesses were the least likely to report their business grew in the past
12 months.
Small businesses that grew over the past 12 months – by market4
Indonesia
57%
Vietnam
63%
China
14%
51%
Singapore
12%
49%
9%
41%
32%
15%
13%
Grown A Little
4
8%
55%
Hong Kong
Australia
26%
70%
Malaysia
New Zealand
34%
Grown Strongly
All data for China excludes Hong Kong, which is shown separately.
23 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
Small businesses that expect their business to grow in the coming 12 months, 2009 to 2015 – by
market
100%
90%
Vietnam
80%
Mainland China
Singapore
70%
New Zealand
Malaysia
60%
Indonesia
50%
Hong Kong
Australia
40%
30%
2009
2010
2011
2012
2013
2014
2015
Small businesses that expect their local economy to grow over the next 12 months, 2011 to 2015
– by market
100%
90%
80%
Australia
Hong Kong
70%
Indonesia
Malaysia
60%
New Zealand
Singapore
50%
Mainland China
Vietnam
40%
30%
20%
2011
2012
2013
2014
2015
24 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
Australian small businesses were again the least likely to have experienced growth in the past 12 months and the
number that experienced growth was a very long way behind the leading markets. While business confidence is up
in the next 12 months, it is still well behind leading economies.
Small businesses that expect to innovate, grow their e-commerce presence to a large extent and strongly grow
revenue from exports are significantly more likely to expect their business to grow in the next 12 months. In
addition, small businesses are more likely to expect to grow if:
 they have between 5 and 19 employees
 the respondent is aged under 50
 the business reported growing in the past 12 months.
Small businesses are also more likely to expect their local economy to grow if:
 they have between 5 and 19 employees
 they are in the manufacturing, property or construction sector
 the respondent is aged under 40.
KEY FINDING
A stronger focus on innovation, e-commerce and exporting should lead to more Australian small businesses
experiencing growth.
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ACCESSING FINANCE
Accessing finance remains relatively easy in Australia; however, this is having little
impact on demand for finance.
Access to finance – the percentage that experienced easy to very easy financing conditions in
the previous 12 months5
2015
2014
Indonesia
60.6%
Indonesia
56.3%
China
59.3%
New Zealand
53.7%
Australia
54.3%
Australia
48.1%
New Zealand
50.0%
China
33.4%
Hong Kong
43.5%
Malaysia
32.3%
Singapore
34.1%
Vietnam
32.0%
Malaysia
31.8%
Singapore
30.9%
Vietnam
29.7%
Hong Kong
29.9%
Access to finance remains significantly more likely to be easy than difficult for Australian small businesses;
however, these relatively easy financing conditions continue to have little impact on the actual demand for finance,
with only 27.1 per cent of Australian small businesses requiring funds from an external source in the past 12
months, well below the percentage of small businesses from Asia, including markets where access to finance is
significantly less easy.
Banks are the most popular source of finance for Australian small businesses. Unlike small businesses from Asia,
Australian small businesses are highly unlikely to source finance from an investor; instead they are more likely to
rely on their own resources.
Reflecting lower levels of confidence in their business, Australian small businesses are significantly less likely than
small businesses from Asia to have borrowed for growth and to purchase a capital asset.
KEY FINDING
Accessing finance remains relatively easy for Australian small businesses; however, this is not leading to an
increase in the number of businesses seeking external finance.
5
All data for China excludes Hong Kong, which is shown separately.
26 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
$20,000 INSTANT ASSET WRITE-OFF FOR AUSTRALIAN
SMALL BUSINESSES
The $20,000 instant asset write-off budget measure is influencing some Australian small
businesses to purchase assets.
The extent to which the $20,000 immediate deduction has influenced decisions to purchase
assets since the Budget
5.3%
To a LARGE extent
25.5%
To a SMALL extent
The expected extent to which the $20,000 immediate deduction will influence decisions to
purchase assets in the coming 12 months
5.3%
To a LARGE extent
30.6%
To a SMALL extent
27 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
The Budget announcement in May 2015 that Australian small businesses with an annual turnover of less than $2
million can claim an immediate tax deduction for the cost of most assets purchased for less than $20,000 in the
year of purchase has to varying degrees encouraged over 30 per cent of small businesses to invest in assets since
the Budget.
Given the economic significance of Australia’s small business sector, it is reasonable to assume that this Budget
announcement has had some positive impact on the economy. The survey results indicate that the positive impact
on the economy is likely to continue over the coming 12 months.
CPA Australia supports this initiative; however, when it was announced we cautioned small business not to make
significant investment decisions based solely on the incentive. That is, there should always be a good business
case to invest in assets. It is therefore pleasing that it seems for many the incentive made the business case to
invest stronger rather than driving the purchase. The survey results indicate that the incentive will continue to be
only one of the factors influencing small business investment decisions in the coming 12 months.
Many businesses that were influenced to purchase assets since the announcement was made experienced some
form of benefit, especially improved productivity. Many, however, stated that it was too early to decide whether their
business will benefit from the investment.
KEY FINDING
The $20,000 instant asset write-off for Australian small businesses has to varying degrees influenced some
small businesses to purchase assets. This trend looks set to continue over the coming 12 months.
28 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
APPENDICES
AUSTRALIAN DATA SNAPSHOT
Business and economic growth
Small businesses that expect their business to
grow – Australia against survey average
Australian small businesses that expect their
business to grow against small business that expect
the Australian economy to grow
90%
90%
70%
70%
50%
50%
30%
30%
2011
2012
2013
Survey average
2014
2015
Australia
2011
2012
2013
Expect local economy to grow
2014
2015
Expect their business to grow
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Businesses that grew in the last 12 months
45.7%
8/8
34.0%
8/8
68.2%
Businesses that expect to grow in the next 12
months
57.3%
6/8
47.0%
7/8
70.7%
Businesses that expect the local economy to
grow in the next 12 months
43.5%
8/8
43.6%
7/8
61.1%
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Increased employee numbers
11.8%
8/8
9.0%
8/8
33.1%
Improved business management had a major
positive impact on their business
10.4%
8/8
N/A
N/A
25.4%
Increasing costs had a major negative impact on
their business
32.4%
7/8
N/A
N/A
39.0%
Required funds from an external source
27.1%
7/8
31.0%
7/8
59.9%
Found it easy or very easy to access external
finance
54.4%
3/8
48.1%
3/8
47.6%
Sought external funds for business growth
31.9%
7/8
41.0%
7/8
56.3%
Business activity over the past 12 months
29 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
Planned business activity over the next 12 months
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Increase employee numbers
16.7%
8/8
13.7%
8/8
41.8%
Definitely expect to introduce a new product,
service or process unique to their country or the
world
5.1%
8/8
N/A
N/A
22.0%
Grow their e-commerce presence to a large
extent
8.2%
8/8
N/A
N/A
32.2%
Expect revenue from overseas markets to grow
strongly
6.1%
8/8
N/A
N/A
19.1%
Significantly increase spending on marketing
and promotion
6.3%
8/8
N/A
N/A
22.8%
Grow their investment in assets strongly
7.6%
8/8
N/A
N/A
23.1%
Definitely will seek external funds
9.0%
7/8
10.2%
8/8
29.2%
Expect easy to very easy access to finance
38.4%
5/8
41.6%
3/8
43.3%
Expect to seek external finance to fund growth
45.3%
8/8
50.2%
6/8
59.7%
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Generated at least some revenue from online
sales
33.0%
8/8
33.1%
7/8
68.9%
Used social media for business purposes
50.2%
8/8
45.1%
8/8
81.4%
Social media and e-commerce
$20,000 instant asset write-off
2015
The percentage of businesses that have been influenced to purchase an asset since the
Budget
30.8%
The percentage of businesses that expect the budget measure will influence them to
purchase assets in the next 12 months
35.9%
30 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
Demographics
2015
Rank
2015
2014
Rank
2014
2015 survey
average
Business is 10 years old or younger
50.0%
8/8
44.9%
8/8
65.6%
Respondent is aged 39 or younger
15.4%
8/8
11.0%
8/8
53.3%
31 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
SURVEY RESULTS FOR AUSTRALIA COMPARED WITH
ASIA
Small businesses in Asia are well ahead of their competitors from Australia in the key
the drivers of growth and jobs creation.
Planned actions of Australian small businesses compared with small businesses from Asia in
the next 12 months
Planned action over next 12 months
Australia
Asia average
16.7%
51.1%
Grow their e-commerce presence to a large extent
8.2%
41.3%
Increase spending on marketing and promotion significantly
6.3%
29.2%
Grow their investment in assets strongly
7.6%
29.0%
Definitely seek external funds
9.0%
37.2%
Expect revenue from overseas markets to grow strongly
6.1%
24.0%
Definitely expect to introduce a new product, service or process unique
to their country or the world
5.1%
28.3%
Increase employee numbers
Actions taken by Australian businesses compared with businesses from Asia in the next 12
months
Action taken over the past 12 months
Australia
Asia average
Used social media in their business
50.2%
92.6%
Earned revenue from online sales
33.0%
82.3%
Increased employee numbers
11.8%
40.7%
Required funds from an external source
27.1%
72.7%
Improved business management had a major positive impact on their
business
10.4%
30.6%
32 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
Demographics – Australia compared with the average for Asia
Australia
Asia average
Business is 10 years old or younger
50.0%
70.8%
Business is 11 years or older
49.0%
28.5%
Respondent is aged 39 or younger
15.5%
66.3%
Respondent is aged 40 to 49
16.5%
25.8%
Respondent is aged 50 or over
68.0%
7.9%
33 | THE CPA AUSTRALIA ASIA-PACIFIC SMALL BUSINESS SURVEY 2015 – AUSTRALIA REPORT
ABOUT THE SURVEY
The CPA Australia Asia-Pacific Small Business Survey 2015 is part of a longitudinal annual study of small business
conducted by CPA Australia since 2009. This report presents a cross-market comparison between the eight
markets surveyed and, where applicable, a comparison of results from 2009 onwards. The survey was conducted
between 24 September and 14 October 2015.
The mainland of China and Vietnam were included in the survey for the first time in 2014. Indonesia and New
Zealand were included in 2011.
The survey in the mainland of China was conducted in Beijing, Chongqing, Guangzhou and Shanghai. All data for
China excludes Hong Kong, which is shown separately.
Interview method
In each market, the online survey was conducted amongst a random sample of small business owners/managers.
The sample was obtained through online panel provider Research Now and their Asian panel partner iPanelonline.
To qualify for the survey, participants were required to be an owner, a senior manager (defined as being a director,
a principal, a CEO, a CFO, a senior manager or a managing director) or a qualified accountant of a business with
fewer than 20 employees.
Sample
In total, 2932 participants completed the survey, including 510 from Australia, 610 from the mainland of China, 265
from Hong Kong, 306 from Indonesia, 310 from Malaysia, 311 from New Zealand, 310 from Singapore and 310
from Vietnam.
Of the 610 participants from the mainland of China, 155 were from Beijing, 152 were from Chongqing, 147 were
from Guangzhou and 156 were from Shanghai.
Questioning
Questions on small business confidence, employment, social media, costs and access to finance were drawn from
previous surveys. Some slight modifications to question wording were made to a number of those repeated
questions. Questions on innovation, major influences on the business environment, e-commerce, spending on
marketing and assets and exporting are new in this survey.
Questionnaires in Australia, Singapore and New Zealand were administered in English. The Hong Kong
questionnaire was administered in traditional Chinese, the questionnaire for Malaysia was administered in both
English and Bahasa Malaysia, Indonesia’s questionnaire was administered in Bahasa Indonesia, China’s
questionnaire was administered in simplified Chinese, and Vietnam’s questionnaire was administered in
Vietnamese.
Rounding
All percentage results shown in this report have been rounded.
29
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