TAJANI CPA RESULTS AUSTRALIA ASIA-PACIFIC SAMALL BUSINESS 2023-24
The annual Asia Pacific Small Business Survey, conducted by CPA Australia, reveals a significant V-shaped rebound in confidence in Taiwan’s economy among small businesses. 58 percent expect the local economy to grow this year, up from 39 percent in last year’s survey. This is also the highest score for Taiwan since it was included in this regional survey in 2018.
An improving local economy has likely contributed to increased small business confidence. Nearly two-thirds (63 percent) of Taiwanese small businesses expect to grow in 2024, up significantly from 48 percent in the last survey.
Mr. Elic Lam FCPA (Aust.) Taiwan Honorary Counsel at CPA Australia commented: “Trade is a pillar industry for Taiwan’s economy. With international trade gradually improving, small businesses in Taiwan have resumed exporting after a difficult period caused by the pandemic.”
Over half (56 percent) of businesses surveyed expected their sales to overseas markets to increase this year.
“There has been a rapid increase in global demand for high-tech products, especially semiconductors. This creates opportunities for Taiwanese enterprises large and small as they play an indispensable role in the technology supply chain, from R&D to production and logistics.”
Improving business conditions are boosting job demand. Last year, 31 percent of small businesses surveyed said they increased their headcount. This is the highest score for Taiwan since being included in the survey. This trend is expected to continue, with 41 percent planning to expand their headcount this year, also surpassing the previous survey’s record.
“Hiring more employees last year was one of the proactive actions many small businesses took as they experienced signs of recovery. Only when small businesses have confidence in the future and the environment is predictable are they willing to hire new staff and increase their focus on innovation.
“Faced with a competitive employment market, employers must consider retention strategies to address talent shortages and use technology to control rising staffing costs.”
As small business confidence grows, concerns about rising costs have also grown. Last year, 31 percent of respondents named cost control as the top profitable driver for their businesses. While the increase in costs (32 percent) was identified as the main business challenge. The costs considered most detrimental to business were personnel costs (33 percent), followed by materials (29 percent) and rent (22 percent).
Lam said, “Small businesses can adopt various measures to navigate the challenges posed by cost pressures, such as embracing innovation, streamlining operations to increase efficiency, or using digital tools to ease labor constraints. .”
A record 62 percent of surveyed businesses sought external funding in 2023. The most popular reason was to use this funding to drive business growth. Banks were the main source of that capital. This momentum is expected to continue in 2024, as three-quarters of respondents indicated that they will or may seek external funding this year.
There has been a marked improvement in access to finance. Last year, 57 percent of respondents indicated that seeking external finance was easy or very easy, up from 30 percent in the previous survey. This year, half of the respondents predicted the continuation of this situation.
Lam noted that compared to other markets surveyed, Taiwanese respondents were less willing to seek advice from outside consultants. He suggested, “Taiwanese small businesses should more actively seek advice from professionals to help them expand their digital transformation and improve financial performance, such as advice on managing financing costs and optimizing cash flow.” money.”
Last year, 21 percent of businesses surveyed sought professional advice from accountants and 24 percent sought it from banks and finance companies.
The survey also highlights unprecedented levels of innovation and adoption of digital tools by Taiwan’s small businesses. Seventy-six percent of businesses surveyed indicate they intend to innovate in 2024, the highest score for Taiwan. Additionally, among the businesses surveyed, 59 percent reported that over 10 percent of their revenue was generated through online sales in the past year, while 57 percent admitted to receiving over 10 percent of their revenue from them through digital payment methods.
“The profound shift in consumer behavior toward online platforms, driven by the pandemic, has been instrumental in driving small business adoption of digital tools. With this shift evident in many other markets, Taiwanese small businesses must keep up to use government support schemes such as “Increasing the competitiveness of small and medium-sized enterprises” to strengthen their digital capabilities to trade online abroad.
CPA Australia surveyed 4,222 small business owners or managers in 11 Asia-Pacific markets across Australia, mainland China and Malaysia, including 311 respondents from Taiwan.
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About CPA Australia
CPA Australia is one of the largest professional accountancy bodies in the world, with more than 173,000 members in over 100 countries and regions, including more than 22,200 members in Greater China. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accountancy profession and the public interest. We engage with governments, regulators and industry to advocate for policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au
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