Small businesses in Indonesia are once again outperforming their competitors in the Asia-Pacific region on the key economic drivers of innovation, technology and exports, according to a new survey released today.
The findings, from CPA Australias eighth annual Asia-Pacific Small Business Survey, follow extensive surveying of nearly 3,000 small business operators in Malaysia, Vietnam, Indonesia, Hong Kong, Singapore, Australia, New Zealand and Mainland China.
CPA Australias head of policy, Mr Paul Drum FCPA, said the survey results showed the strong investment that Indonesian small businesses have made in technology - and their focus on innovation and exporting - was reaping strong profits for the sector.
"Nearly every Indonesian small business that participated in the survey reported that they grew in 2017 (93.4 per cent), the highest result ever recorded for all markets surveyed," Mr Drum said.
Eighty-six per cent of respondents stated that their investment in technology over the past 12 months has already resulted in improvements in profitability - the highest result of the markets surveyed.
"Of those businesses that grew, 42.4 per cent of businesses stated that their growth was very strong - again, the best result this survey has ever recorded. In comparison, only 6.1 per cent of Hong Kongs businesses recorded very strong growth in 2017.
"This very positive result, plus Indonesias strong business confidence, will no doubt encourage further investment in technology and innovation, which will further assist businesses to become more globally competitive.
"Were also pleased to see Indonesias small business sector continues to be highly innovative, with just under half of respondents (49.3 per cent) expecting to introduce a new product, process or service to Indonesia or the world in 2018 - again, the highest result for the markets surveyed.
"Indonesias very positive business conditions look set to continue in 2018, with an extremely high number of Indonesias small businesses expecting to grow (94.7 per cent) ? the best result of this survey ? and small business confidence in Indonesias economy remains high.
"The vast majority of Indonesias small businesses sell online and use social media in their business. In fact, it would be difficult to find an Indonesian small business that is not using social media or selling online. Online sales are a significant part of many Indonesian small businesses, with 70.4 per cent earning over ten per cent of their revenue from that channel.
"While the survey results are overwhelmingly positive for Indonesia, businesses also report challenges, with increasing competition seen as the largest barrier to growth. However, competition is likely to have positive long-term implications, as it helps to drive further innovation and expansion into new markets, which are both essential ingredients to growth," Mr Drum said.
The CPA Australia Asia-Pacific Small Business Survey provides annual insights into the views of small businesses across the region and forms part of a longitudinal study that began in 2009.
A summary of survey results for Indonesia (in English) can be viewed here:
The full results of the CPA Australia Asia-Pacific Small Business Survey (in
English) can be viewed here.
Source: ANTARA News