Digital transformation is the key to post-COVID recovery
It might be a cliche, but it is also very true: small business is the backbone of Australia’s economy.
Australia is home to nearly 2.5 million small businesses, which means one in two workers are working in a small business, which is a third of the country’s GDP.
So it’s probably no surprise that the post-Covid recovery will be driven by small business. The success of that recovery will be based on how well businesses adapt to the new normal and how they innovate for the future.
This week I spoke with the chief executive at MYOB, Greg Ellis, who said digital innovation for small business was the most crucial factor that would separate those businesses destined to succeed in the recovery phase.
“Everyone agrees that the federal and state governments are doing a great job with JobKeeper and JobSeeker,” Mr Ellis said.
“But we can’t keep main-lining cash into the economy and we have to start looking at what things will look like on the other side.
“Even pre-Covid19 the evidence was pretty clear that those companies who were adopting digital applications were growing two-times faster than companies that were not.
“So what we’re saying is that Australia has been dealt an opportunity here to catch up and make our small to medium enterprises the forefront of our economy, and make them a world class digital citizen which is good for them and good for the economy,” he said.
It goes with what I have said here previously that businesses have to be willing to look at options to stay afloat, such as increasing their online presence, or adopting an online sale portal, and then also consider whether this could be an ongoing part of their business model.
As we know, Job Keeper has only roughly a month to run its current form. It has acted like a bit of a bulletproof vest for many businesses since it was introduced, and that’s been great for many businesses owners and employees, but change is coming again and those that are well prepared will fare best.
If you haven’t been putting as much of your business activities into the digital world as possible, there’s no better time to do so than now.