NBN Connections are Driving Small Business Growth
Small businesses in NBN areas grew employment by one-third more than businesses in non-NBN areas and increased revenue by almost two-thirds more. Trent Innes MB of Xero Australia said the outcomes show the NBN is worthy for small business.
“Many people have been fearful the digital revolution will result in the loss of jobs. Instead, what our data suggests is that it actually does the opposite. It’s enabling small business growth, and those that are leveraging digital the most are seeing significant benefits.”
Economic impact of the NBN on small businesses
NBN is about halfway complete and has delivered better access to high-speed broadband for small and medium businesses, which employ almost 70 percent of all workforces. Overall, the Digital Connectivity Report suggests small businesses and the economy are benefiting from increased access to high-speed broadband.
Digital app connections driving business growth
Small businesses that have implemented the use of apps tend to outperform those who have not, said Andrew Charlton, Director of AlphaBeta.
“There’s a strong relationship between app use and better business performance. The analysis found that businesses generating jobs are turning to apps to help manage their growth.”
Only 30% of small businesses are NBN connected
Two-thirds of small businesses were not connected to high-speed broadband. Moreover, about 30 percent of businesses still lodge their BAS declarations on paper, while 14 percent of small businesses don’t use IT for their accounting and bookkeeping.
“Digital connectivity is evolving rapidly from a ‘nice to have to a ‘must have’. With the mandatory government rollout of Single Touch Payroll (STP), mandatory two-factor authentication (2SA), and increased use of e-invoicing, it’s critical that businesses, technology providers, government and advisors come together.”
“We need to help small businesses overcome barriers like lack of awareness, lack of time, and fear of change to make this digital transition. It will not only help them meet their compliance requirements but will help boost economic growth across Australia.”