New study finds correlation between website investment and projected business growth

SYDNEY, Australia – Australian micro-businesses are moving online with huge expectations – 79% of businesses planning to build a website project they will grow by 10-50% in the next 3-5 years, according to a new study commissioned by  GoDaddy.

The survey conducted by RedShift Research of 502 micro Australian businesses (1-5 employees) shows that this is not an unrealistic expectation. Forty-five percent of businesses with websites say their business grew once they had built their website, with over a quarter seeing more than 10% growth. Additionally, 64% of those with an existing website expect up to 50% business growth in the next 3-5 years. Interestingly, those with no plans to build a website in the next two years have lower expectations for the growth of their business. Only 4% of those with no plans to build a website said they project 25-50% growth in the next 3-5 years.

The research set out to examine how micro-businesses are considering their digital presence today and in the future. The study also found that 74% of Australian micro-businesses interviewed have an online presence, of which 39% currently have their own website and 35% plan to build one in the next two years.

Of the 32% of Australian micro-businesses surveyed who don’t have a website or online presence, 1 in 5 felt that either cost (22%) or lack of technical expertise(20%) was holding them back.

“Despite the prevailing view that micro-businesses may be intimidated by digital technology, there does seem to be a paradigm shift.  Australian businesses are recognizing the link between having a website and strong business growth,” said Tara Commerford, GoDaddy Country Manager, Australia and New Zealand.

“The message to micro-businesses is that there’s no reason to fear or avoid setting up your own website, given the simplicity of online and technology services such as GoDaddy. We know that micro-businesses recognise the potential of being online, but it’s critical these businesses also consider creating a long-term and strategic digital presence. Registering a domain name for their business and creating a website allows them to build their brand, and reach more customers effectively. This approach allows micro-businesses to really tap into the growth potential that an online presence can deliver,” added Commerford.

 Small Business, Big Growth

In addition to realizing that going online is a key step forward in their growth, micro-businesses are moving towards taking full advantage of the Internet. The study clearly shows that respondents are embracing e-commerce, social media and mobility:

·         81% said building a website will increase their customer base, with the biggest growth expected from local areas (46%), while 35% expect national and international growth

·         Half of the prospective websites planned by small companies (52%) will have an online store/e-commerce functionality, while 28% say they will have an online store available at launch

·         82% said it’s somewhat or very important for their new website to be mobile-friendly

·         The majority (69%) of respondents say SEO would be the most helpful tool to reach new markets and improve customer relations, and nearly half (46%) believe having a social media presence would be most helpful to reach new markets and improve customer relations

While new school functionality is important, unsurprisingly Email is still considered a fundamental business tool, with 52% of respondents, citing it as the most frequently used communication mode.

In addition to growth, holding a competitive advantage is a key motivator for micro–businesses in Australia to build a website. Seventy percent of those with a website felt they enjoy a competitive advantage over businesses without a website.

Too Small for the Internet?

Micro and small businesses make up 96%[1] of the Australian business landscape, but for some, perceived barriers often curtail their leap online:

·         35% said they viewed their company as just too small to warrant one

·         20% said it was beyond their technical expertise

·         22% reported that they couldn’t afford it

 

The research also captured further demographic data about micro-businesses intending to build a website:

·         46% are run by women

·         69% have 100 or less customers

·         41% have been in business for 11 or more years

 Whilst the research finds that many micro-businesses already have an online presence, there is a gap when it comes to registering a domain name for their business. The research found that of the micro-businesses intending to build a website, only one in five have bought a domain name for it-indicative of the lack of knowledge about a domain being the first step to an online identity In addition, the research showed they are likely to take different paths towards turning that website into reality.  Twenty-one percent said they are looking for a company to help them build it, while others are looking for a web designer (24%), asking family to help (30%) or intend to do it themselves (17%). 

“When you consider the number of micro and small businesses in Australia, coupled with the current changes in our economic landscape driving businesses to explore new revenue streams, the value that can be generated by creating a website is significant,” said Commerford. “It’s encouraging to see that these businesses acknowledge that having their own domain name and website as part of their digital strategy can boost growth and brand awareness by making their business visible to local, national and international audiences.”

 

End

 

Note to Editors: The survey was conducted by RedShift Research of 502 micro Australian businesses (1-5 employees) in June and July, 2015. Data is available upon request.

 

 

About GoDaddy

GoDaddy's mission is to radically shift the global economy toward small businesses by empowering people to easily start, confidently grow and successfully run their own ventures. With more than 13 million customers worldwide and more than 60 million domain names under management, GoDaddy gives small business owners the tools to name their idea, build a beautiful online presence, attract customers and manage their business. To learn more about the company, visit www.GoDaddy.com.

 

For information to help get your small business online, visit: au.godaddy.com