Small businesses failing ‘digital health check’ as industry urges government to include cyber resilience funding in May budget

The federal government must provide financial and advisory support to help small businesses build their digital capacities, leading industry groups say, as a new report claims the majority of Australian SMEs are failing a ‘digital health check’.

With the May 2023-24 federal budget rapidly approaching, accounting groups CPA Australia and Chartered Accountants Australia and New Zealand (CA ANZ), along with the Australian Retailers Association (ARA), and business lobbyists the Australian Chamber of Commerce and Industry (ACCI), have urged lawmakers to provide new funding for digital support measures.

Shared between the submissions are concerns that small businesses lack the digital competitiveness of major enterprises at home and abroad, and fears that many independent businesses lack the cyber security capabilities needed to ward off high-tech criminals.

Recent research gives some credence to those claims: just 32.3% of Australian small businesses would pass the digital health check proposed by Navii, an independent NGO established to bolster their online presence.

Small businesses are under-delivering on their social media presence, website features, and search engine optimisation compared to bigger competitors, says Navii co-founder and CEO Liz Ward.

And earlier this month, Cyber Wardens — a partnership between the Council of Small Business Organisations Australia and Commonwealth Bank — revealed 80% of small business owners are not confident in their ability to defend themselves or rebuild from a cyber security threat.

CPA Australia, which represents business support workers across the country, says “direct financial incentives” helping small businesses access digital advice would drive uptake.

“The quickest way for small businesses and NFPs to build capability is to seek advice from those who have the knowledge, skills and experience to assist with building that capability — their existing professional advisers,” it said.

A cybersecurity marketing campaign features on CA ANZ’s agenda, while the ARA, speaking for retailers across Australia, said funding for even deeper industry integration would help protect independent enterprises.

The federal government should “address the digital divide between small and large businesses, by collaborating with industry associations to deliver programs that build capability about digital transformation, digital literacy and cyber security,” its submission said.

ACCI’s suggestions follow suit, with the group proposing a “trusted adviser” service “offering information and advice on digital opportunities, as well as raising cybersecurity awareness and providing resources to protect small business from cybercrime”.

The federal government has already launched programs designed to boost the online security and competitiveness of small businesses.

In August 2022, it launched an $18.6 million digital training grant scheme, which Small Business Minister Julie Collins said will help eligible enterprises “recognise and grasp the opportunities that going online can offer”.

Successful grant recipients will start offering their services to the SME community from April this year.