Xero Small Business Insights special report compares ICT spending in New Zealand, UK and Australia
Xero, the Global Small Business Platform, today released a new report that shows New Zealand’s small business ICT spending has risen 25% from pre-pandemic levels – more than the Kingdom United (20%) and Australia (13%). Small businesses that had higher levels of ICT spending experienced better sales and payment outcomes, as well as fewer job losses throughout the pandemic.
This information comes from the latest special report of Xero Small Business Insights’Stepping Up the Pace: Trends in Small Business Technology Adoption and Use â which uses anonymized and aggregated data from over 300,000 small businesses on the Xero platform in New Zealand, Australia and the UK to study small business digitization trends.
While New Zealand leads in post-pandemic growth, it lags the UK in spending share. In the UK, 4.4% of total small business spending is on ICT, with 2.9% for New Zealand and 2.4% for Australia.
The top 25% of small business ICT spending (compared to 2019 spending) saw an average sales increase of NZ $ 20,400 in 2020. The poorest 25% saw their sales drop by $ 24,000 over the same period, a difference of $ 44,400 between the two groups.
In addition, the top quartile of ICT spending was paid 1.1 days faster in New Zealand than the bottom quartile.
Xero New Zealand and Pacific Islands chief executive Craig Hudson said every small business should review the technology they use.
âThe data in the report is clear: Companies that adopt the technology are moving forward, while companies that don’t are being left behind. Professional services are leading the way in ICT spending, but there are incredible digital tools and applications for every industry, not just for office workers.
“If you are a business owner who feels a bit overwhelmed with the technology, I implore you to visit the government for free Digital boost website or visit Xero Why we are in it guide where we break down the first steps you can take to start your digitization journey.
Xero data also showed a relationship between small business growth and app usage.
In New Zealand, the top 25% of app users saw 5.0% year-on-year (y / y) sales growth and 3.5% year-on-year employment growth in 2020, compared to a 3.7% drop in year-on-year sales. and 1.0% y / y in jobs for non-app users.
This follows Xero’s behavioral science research study A step who found that those who readily adopt new technologies enjoyed, on average, 120% higher incomes and 106% higher productivity.
Xero is a cloud-based accounting software platform for small businesses with over 3 million subscribers worldwide. With Xero, small business owners and their advisors have access to real-time financial data anytime, anywhere, and on any device. Xero offers an ecosystem of over 1,000 third-party applications and over 300 connections to banks and other financial partners. In 2021, Xero was included in the Dow Jones Sustainability Index (DJSI), based on the S&P Global Corporate Sustainability Assessment. In 2020 and 2021, Xero was included in the Bloomberg Gender-Equality Index and in 2020, Xero was recognized by IDC MarketScape as a leader in its global assessment of providers of SaaS and cloud finance and accounting applications for small businesses.
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