SMEs still dipping out of digital benefits

SMEs still dipping out of digital benefits
MYOB Business Monitor survey shows more SMEs need to take advantage of digital technologies

The latest MYOB Business Monitor survey of more than 1,000 SMEs has revealed that many businesses are still not taking advantage of the benefits of online technologies, such as cloud computing and websites. 

The survey found that only 16 percent of New Zealand SMEs use cloud computing. A breakdown of those figures can be viewed in the infographic below.

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The survey also indicated that only 34 percent of New Zealand SMEs operate a business website (and only 49 percent of Auckland business according to Yellow's recent survey).  

"There is an immense need in this country for government and business leaders to work together with our business community to share knowledge about the benefits of embracing online tools," says James Scollay, general manager of the MYOB New Zealand business division.

He explains that SMEs running business websites, "are almost 10 percent more likely to have reported a revenue increase in the last year than those without, while those that have embraced cloud computing are 16 percent more likely to have seen a rise." 

The finance and insurance industries have been the biggest adopters of cloud computing, with 29 percent of SMEs embracing the cloud. At seven percent, the transport, postal and warehousing industry has the fewest SMEs in the cloud.

"Businesses owned by the oldest generation, 'Traditionalists', have the lowest uptake of both the cloud and business websites, while those owned by Generation X were the most technology savvy," says Scollay. "Generation Y are described as 'digital natives', and you would expect that they would be ahead of their older peers when it comes to use of the cloud and ownership of a business website. In reality they are behind Generation X in cloud usage."

The Business Monitor survey also found that SMEs with remote workers were 43 percent more likely to see a revenue rise in the past year.