Many small business owners feel they don’t have enough time to develop digital engagement strategies, or are sceptical about the dividends it will return to their enterprise.
However, Google Australia’s head of small business marketing Rich Flanagan says that taking the plunge can be worth it because it is likely to boost your revenue and profit.
“The internet allows you to reach different audiences that you might not have reached before,” he told Dynamic Business. “The internet really opens up the world quite literally. Whether you are looking to reach other suburbs in your area, interstate or overseas. Every business needs to assess what kind of online and e-commerce presence is right for them.”
A Deloitte Access Economics report found that highly digitally engaged small businesses were two times more likely to be growing revenue than those with low engagement. They were also four times more likely to be hiring and three times more likely to have growth as a business objective.
Published last year, the report contained the results of a survey of 500 SMEs with between 1-100 employees conducted by TNS Australia. It found that 35 per cent of SMEs had very low digital engagement or did not use the internet at all for their business. Only 16 per cent were found to be making the most of the range of online opportunities available.
Commissioned by Google Australia, the report found that 84 per cent of SMEs were not taking advantage of digital strategies such as search engine optimisation and marketing. Mr Flanagan said taking advantage of these kinds of technologies often helped businesses. While he said the initial investment often put businesses off, the benefits were worth it.
According to the Deloitte report, those businesses that were highly digitally engaged were more likely to diversify, offer new services and reach new customers. Businesses that implemented effective digital strategies were positioning themselves for “long term survival”.
The barriers to SME digital engagement include scepticism among business owners about the return on investment and the expected impact it will have on business. Other major factors include the reality that many business owners simply not having time to develop online solutions.
