Australian small enterprises remain at or near the bottom of the Asia-Pacific (APAC) rankings for growth, innovation and technology uptake, according to CPA Australia’s 17th annual Asia-Pacific Small Business survey.
The report, based on responses from more than 4,100 businesses, points to continuing concerns around Australia’s economic dynamism and productivity.
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CPA Australia business and investment lead Gavan Ord said: “For more than a decade, our survey has told the same story – Australia’s small businesses are consistently lagging their Asia-Pacific counterparts, and the gap is not closing.”
Fewer than half of Australian respondents reported business growth in 2025. They were also the least upbeat in the region, with more expecting the national economy to contract than improve this year.
On technology, Australian small businesses ranked among the least active adopters in the survey. Those that do invest in digital tools report limited financial benefits.
Only 30% said technology spending in 2025 had boosted profitability, one of the weakest outcomes across the Asia-Pacific sample.
In terms of online trading, 44% of Australian small firms gained more than 10% of their revenue from online sales. This compares with a regional average of 63%. Use of external expertise was also lower.
The survey found that 17% of Australian small businesses obtained advice from IT consultants or specialists, versus 27% on average across the Asia-Pacific.
AI adoption remains relatively subdued. About 15% of Australian respondents identified AI as the technology they invested in most heavily in 2025, compared with 32% in the wider region.
Social media use for commercial purposes was reported by 68% of Australian businesses, against an APAC average of 88%.
Ord added: “In light of the Treasurer’s warning about the economic fallout from the war in the Middle East, it’s critical that small businesses seek advice from their accountant as a first step.”
The survey also found that more than half of Australia’s small business owners are aged over 50.
In response, CPA Australia is urging governments to focus on simplifying regulation and easing compliance demands that weigh heavily on smaller firms.
It is also calling for measures to encourage technology adoption, strengthen digital skills and support more young Australians to start businesses.
Last month, CPA Australia supported review of the Australian Taxation Office’s (ATO) Online Services for Agents (OSfA) and its secure communication channel, Practice Mail.
