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Mar 18, 2024 288 likes •385 views

From little things big things grow How digital connectivity is helping Australian small businesses thrive Small Business Insights OCTOBER 2018 From little things big things grow : How digital connectivity is helping Australian small businesses

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From little things big things grow

How digital connectivity is helping Australian small businesses thrive

Small Business Insights

OCTOBER 2018

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Xero Small Business Insights (Xero SBI) is a snapshot of Australian small business health, updated

monthly. It uses anonymised, aggregated data selected from over 500,000 Xero subscribers. By

analysing information from a large group of subscribers, Xero SBI is able to track the performance

f Australian small business.

It’s our hope that policymakers and large enterprises can use Xero SBI to make more informed decisions that benefit the small business economy. Here are selected findings from our digital connectivity report, From little things big things grow, which is available in full on the Xero SBI website.

What is Xero Small Business Insights?

From little things big things grow:

How digital connectivity is helping Australian small businesses thrive

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Source: AlphaBeta analysis of Xero SBI data July 2018

Businesses on Xero with at least one integrated app grew revenue by 5.5% a year. That compares with just 3.6% for businesses using no apps.

5.5%

Businesses on Xero with at least one integrated app saw annual employment growth averaging 4.7%, or nearly double that of firms which used no apps (2.5% growth).

4.7%

As revenue and employment grow, small businesses connect more apps to Xero to automate tasks such as employee rostering and invoicing

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Adoption rate of popular app types, broken down by industry July 2018

Apps are increasingly targeting particular industries that share a common pain point

Clerical Business intelligence Job scheduling & invoicing Rostering Managing accounts POS

*Source: AlphaBeta analysis of Xero SBI data. Industries may have multiple apps connected to Xero; breakdown does not add up to 100%

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Apps connected to Xero are helping industries address longstanding inefficiencies or pain points

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% of SMEs using connected apps vs not using apps, by industry July 2018 (% total SMEs in industry)

The wholesale trade, retail trade, manufacturing and hospitality industries are among the biggest users of apps

Using apps Not using apps

*Source: AlphaBeta analysis of Xero SBI data. NB: sectors with fewer than 5,000 orgs excluded

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