Main results of the survey:
- Around 64% of micro, small and medium-sized enterprises (MSMEs) believe that digitizing their business helps to make it sustainable in the long term.
- Of the respondents, 83% have a business website while 16% of them sell online.
- Rising inflation rates increased business costs for 84% of small businesses.
- The majority of those who sell online have a neutral opinion on whether e-commerce reduces some cost pressure. However, half of them agree that it is a key driver for enabling business growth.
- More than half of small businesses believe New Zealand is an excellent country to do business.
WELLINGTON, New Zealand, July 4, 2022 /PRNewswire/ — As the world hopefully waits for the pandemic to end, Kiwi small businesses have found a lifeline in digitalization to sustain their operations into the future. That’s according to a recent survey conducted by Crazy Domains, the leading online hosting and solutions provider in New Zealand.
COVID-19 has shut down small and medium-sized enterprises (SMEs) around the world, but many have held on by embracing digital methods, such as creating a website (83%), sending e – professional emails (86%), use of a social network presence (54%) and online marketing (36%).
Businesses also leveraged other online platforms, such as video conferencing (41%) and social chat (23%). Meanwhile, only 22% of Kiwi businesses want to sell in online marketplaces.
Gaining a digital presence has become a huge investment for businesses in New Zealand. In fact, SMEs spend more than $2,800 every year on digitization – including hosting, web design and development, email hosting and online marketing services.
MSME attitudes towards digital transformation
Having an online presence remains essential for small businesses and among the large minority (17%) who do not have a professional website, 42% want to create their website themselves, while the majority are willing to outsource the work.
E-commerce seems to be the lowest priority for Kiwi SMEs. Of those with business websites, only 16% sell online, while only 18% plan to do so in the next 12 months. Apparently, acquiring new customers is not the only reason SMEs launch a business website, but also to increase brand awareness and maintain a professional image.
With inflation rates rising on top of the recent return of coronavirus cases, 84% of small businesses are facing the impact of rising business costs. Among e-commerce businesses, more than a third believe that selling online relieves some cost pressure. Meanwhile, half of them agree that selling online enables business growth.
For e-commerce businesses, contactless payment options are efficient but not essential. Around 36% of them use Tap-to-Pay systems, while 40% do not. Meanwhile, 24% say these features don’t apply to their business. Kiwis are also not inclined to offer buy-now-pay-later (BNPL) payment systems, with only 8% offering them to customers.
Business outlook amid COVID-19, economic challenges
SMEs react differently when it comes to their business performance over the past 12 months. An equal proportion of companies feel they performed better or worse than last year. Meanwhile, half of respondents said their performance remained the same.
With Russia ongoing war against Ukraine and the current health crisis, only a third of Kiwi SMEs are optimistic about doing business in the next 12 months. However, a slight majority (53%) is positive New Zealand remains a major hub for MSMEs.
In an effort to gain insight into the recovery and outlook for MSMEs amid the global crisis, Crazy Domains conducted the survey with 314 respondents across the following segments: Consulting/Training, Manufacturing, Professional Services, Healthcare and social services, retail and education.
To download a copy of the infographic, click here.
About Crazy Domains
Crazy Domains is one of the leading web hosting and solution providers in New Zealand. Deeply rooted in Australiait has become a globally recognized brand through Asia, Europe, UK, Middle Eastand United States. Crazy Domains is a portfolio brand of Newfold Digital, a reputable global provider of web presence solutions for small and medium businesses.
With over 20 years of experience, Crazy Domains has helped MSMEs around the world launch a profitable online presence with leading IT solutions like domains, hosting, servers, online marketing, and more. To learn more, visit crazydomains.co.nz.