State

of the

Nation

Small Business Digital

Engagement in Australia

DISCLAIMER

www.netstripes.com

2019

The information, text, technical and research content contained in this document is for

general information purposes only and should not be mistaken for a business consultation.

We make no warranties of any kind, expressed or implied about the suitability of the

information contained to your business.

Only 14% of Australian small businesses are fully

digital engaged

1 in 4 small businesses are proactively engaged

on social media

16% of websites pass minimum requirements

for successful web functionality and engagement

1 in 10 small businesses use email marketing to

reach and connect with existing and

prospective customers

Only 13% have a content strategy

31% uses Search Engine Optimisation strategies

This research provides a statistical overview of Australia’s small businesses,

with emphasis on digital engagement and performance. Unless otherwise

stated, small businesses are defined as those who are actively trading and

employ less than 20 people.

Preface

The State of the Nation 2019 is designed to outline not only the

parameters needed to establish a strong digital presence but also

the contributing factors of having a successful digital engagement

with customers and prospects that helps businesses succeed.

Highlights

A Message From the CEO: Our Digital Initiative

Overview of Digital Engagement in Australian Business

The Measures of Engagement

Key Quantitative Research Findings

Digital Engagement By State

Key Ethnographic Research Findings

Overall Digital Engagement

Implications

Benefits of Being Digitally Engaged

Conclusion

CONTENT

Small businesses are facing

insurmountable challenges in coping with

digital disruption and achieving digital

engagement in their business. Businesses

that close down each year are in the

hundreds of thousands, yet the opportunities

available to businesses of all sizes in this

digital era are unprecedented. Innovative

enterprises of all sizes around the world have

created major economic value as they have

successfully ridden the wave of the internet

and smartphone revolution.

With technology drivers such as Artificial

intelligence (AI), the Internet of things (IOT),

Virtual reality (VR) and Augmented reality

(AR), have begun to impact our businesses

even further. As a nation we need more

than lip service from Federal and State

governments. We need a commitment for

concerted action, if we are to survive the

increasing disruption we are seeing in every

industry. Yet more so, to acknowledge

the advantages of the vast opportunities

presented by these technology drivers for

innovative and digitally-focused enterprises

that can deliver more jobs, and economic

growth nationally.

Considering that although Australia ranks

18th on the Ease of Starting a Business

Index 2017

[1]

and 14th on the Information

and Communication Technologies Index

2017

[2]

, it is an economic failure that Australia

HIGHLIGHTS

We are pleased to present the State of the

Nation Digital Engagement Research for

small businesses in Australia.

ranks 20th on the Global Innovation Index

[3]

behind nations that were once behind

Australia just a few years ago. Our rank has

consistently slipped in this index in the last

few years. Australia has also slipped to 38th

in Knowledge and Technology Output Index

[4]

These gures is of great concern to our

economy as the nation has great potential for

economic progress, however is challenged

by the evolving digital landscape and have

failed to achieve optimal output from available

technological resources.

This report offers updated insights for policy

makers and small businesses to acknowledge

the much needed initiatives towards improving

digital engagement in the country. We believe

that the ndings provide the rst steps to

helping businesses become leaders within

their industry and communities. From here,

targeted action within the parameters can

advance what we believe to be a promising

future for business owners.

By understanding both the challenges and

solutions available, this will help business

owners stay well ahead of their competitors,

as well as empower policy makers to create

the necessary incentives and ecosystem

to spur the growth of digitally focused

businesses throughout Australia.

CEO of Netstripes

Dinesh De Silva

As the CEO of NetStripes, It gives me great pleasure to present

the State of the Nation, Small Business Digital Engagement in

Australia.

With NetStripes, appointed as the Digital Specialist by the

NSW Government under the Business Connect program in

2016, through this, and other NetStripes programs, we have

helped over 7000 small businesses. Together with our research

on small businesses since 2014, we have developed deep

and unparalleled insights into the needs and pains of small

businesses in Australia.

I have no doubt that the secret to Australian innovation lies

among 2.3

[5]

million small businesses around the country. I say

this with great conviction as having met thousands of business

owners, I know that they understand their industries intimately

- they know what works and what doesn’t. I have personally

seen unfulfilled potential within these businesses and the

business owners, and in there lies the motivation to create real

success using innovation. When small business owners are

provided with the knowledge and right innovative tools, that’s

where the magic happens.

A Message

from the CEO

It is essential for business owners to keep a focus on continued

innovation within their businesses and industries, while continuing to

progress in their digital engagement capability. This is extremely crucial

as we head into a new decade in 2020 with key technology drivers such

as Artificial Intelligence, Virtual Reality and Augmented Reality.

“It is an imperative for small business owners to understand that digital

engagement is not a luxury, but an absolute necessity for their success

and long term survival.”

Our research and that of others, also stresses the need for non-digitally

engaged small businesses to take immediate action, considering that

almost 90% of Australians have access to the Internet. Evident in this

study, small business owners will struggle if they do not utilise the

Internet to reach their customers, so we encourage them to take action

to address this need with a sense of urgency.

In closing, we urge you to join us at Bizruption, where we bring together

a community of like-minded small business owners, technologists and

key influencers.

We are and will continue to establish new grounds to further promote

success and economic growth in Australia through innovation and

strategic digital engagement of small businesses.

OUR DIGITAL

INITIATIVE

Overview

Digital Engagement has become the most important

ingredient for small business success. It is defined

to be the essential marketingstrategies required for

successful digital leverage.

This State of the Nation 2019 research analyses the

current digital engagement state of small businesses

in Australia, covering 780 different small businesses,

categorized by state and industry.