Business growth a priority as prices and margins place pressure
Chinese SME operators in New Zealand are more likely to use cloud computing solutions than SMEs overall, but less likely to have an online presence for their business, according to the latest MYOB Business Monitor survey.
The Monitor revealed that 41% of Chinese business operators use cloud computing solutions at least some of the time whereas only 32% of SMEs overall reported the same. However, when it came to whether or not their business had a website or social media site, less than a third (29%) said they had either, as opposed to almost half (48%) of SMEs overall.
MYOB National Sales Manager, Business Division, Scott Gardiner says although adoption of cloud computing solutions is a positive for any business, there are many benefits to be realised through ensuring the business has an online presence.
"Our years of research have shown us that not only do online businesses reach more people and are more engaged with their customers, they also report higher revenue performance and greater business success. In fact, our latest research found that businesses with a website were 40% more likely to report revenue growth over the previous 12 months than those without a website."
Price margin pressures high, business growth prioritised
Unlike the other ethnicities, fuel prices were not the top pain point for Chinese SME operators in the latest Monitor. Instead, the most pressure came from price margins and profitability with 28% of Chinese SME operators reporting that they expected to experience quite a lot or extreme pressure from this pain point over the 12 months to February 2015. Fuel prices came second with 27% expecting pressure at the pump, followed by interest rates at 24%.
In comparison, 25% of SMEs overall reported they expect pressure from fuel prices and interest rates were ranked second at 22%. Price margins and profitability were ranked third equal at 21% with cash flow and competitive activity.
Unsurprisingly, prices and margins are also the highest ranking focus for investment with Chinese business operators this year. Over a third (35%) of this group reported that they plan to increase their prices and margins on products or services sold in the 12 months to February 2015. Encouragingly, 30% of Chinese business operators also stated that they plan to increase the amount that they pay their employee wages and a quarter (25%) reported they plan to increase the variety of products or services they offer.
When it came to the overall goals for the business, Chinese SME operators were more likely to want to grow their business than SMEs overall. 45% of Chinese business owners reported their long term goal for the business is to build the business to the stage it provides a very good living or is sold off for a large profit. Just over a third (34%) of SMEs overall reported the same.
Conversely, half (50%) of all business operators surveyed stated the goal of the business was more of a lifestyle choice, allowing them the flexibility to work when they want and on the projects of their choosing. Only 39% of Chinese business operators placed this as the main goal for their business.
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About MYOB New Zealand
Established in 1991, MYOB is New Zealand's largest business management solutions provider. It makes life easier for approx. 1.2 million businesses across New Zealand and Australia, by simplifying accounting, payroll, tax, practice management, CRM, websites, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly in cloud computing solutions, and now spends more than NZ$35 million annually on research and development. In 2013, MYOB expanded its offerings with the acquisition of accounting solutions provider BankLink. For more information, visit myob.co.nz.