Power of online connectivity: Connected businesses boost revenue
Small business owners sometimes don't have a lot of money to spend on marketing and advertising, having to take on several jobs at one time.
The internet and social media have become the solution for these small business owners, helping them to save money and a lot of manual work on advertising campaigns.
Deloitte Access Economics released its Connected Small Businesses report which reveals how these businesses are growing in the digital economy – and according to the director of Google Australia Jason Pellegrino the web is "quite simply rocket fuel for small business".
"Small businesses with high digital engagement – that is, SMBs that are making the most use of online tools like websites, online marketing, and social media – are two times more likely to be growing revenue and earn two times more revenue per employee than those with low engagement," Mr Pellegrino posted in the Google Australia Blog yesterday (April 15).
"They’re also job creators for Australia, being four times more likely to be hiring than those with low digital engagement."
A national survey was conducted on 500 small business, measuring their level of digital engagement.
Small businesses that made "full use" of the internet with high digital engagement were also noted to have better growth prospects, more diversified sources of revenue and a bigger customer base.
Only 16 per cent of Australian small business were noted to be highly digitally engaged, however, 25 per cent had medium digital engagement, 24 per cent low engagement and a large 35 per cent had very low digital engagement or did not use the internet at all.
Deloitte set out three main points that set high digitally engaged businesses from others: digital presence on social networks, use of internet reaching new customers in the local market, and the use of search engine marketing and search engine optimisation.
Mr Pellegrino said that Australia's two million small businesses employ seven million people and make up half of the private sector economy.
"So even a small step forward can mean more free time, more customers, and more revenue or jobs for businesses owners. And that’s good news for Australia."
Posted by April Revake.