Generation Y SMEs (25-39 years old) are looking forward to the coming year as 53% expect more profits.
In the latest MYOB Business Monitor, more than 1000 Australian SMEs were surveyed.
Generation Y SMEs were found to have achieved a profitability of 40% over the past 12 months, which is more than the national average of 26%.
Research also shows that Generation Y SMEs are more digitally represented, with 84% having either a website, social media presence, or both for their business.
"Digital enablement is critical to the current and future success of SMBs," said Greg Ellis, CEO of MYOB.
“Digital enablement is critical to the current and future success of SMEs. Many companies would not have survived 2020 without digital tools as they were the only way to connect with customers, colleagues and communities in general. "
Ellis continues: "2020 has proven that we no longer have to treat digitization as a future state."
However, regarding the results of the survey, it states that 34% of respondents still do not have an online presence.
Business confidence, pressures, and priorities
The survey found that despite the fact that companies have been feeling uplifted lately, many are still feeling the effects of Covid-19. 44% of SMEs state that their income has decreased compared to this time in the last year, 21% expect a decrease of another 12 months.
However, businesses are under less pressure than they were in June last year, although the economic downturn due to Covid-19 remains the main concern of SMEs.
Customer loyalty has the highest priority for SMEs this year. 27% expect to increase their investments in this area. Other investments that are expected to increase include prices and margins for products and services sold and selling products and services online.
"The latest results from Business Monitor show that being digitally enabled is more important than ever for business owners and that online businesses have the best chance of success," says Ellis.
“Digitization is not just about using social media or designing a smart website. It's about harnessing the efficiencies and insights digital technology can offer in terms of productivity, accuracy, and smarter business decisions. "
