CPA Australia: Taiwanese small businesses resilient and digital breakthrough expected

• Taiwanese small businesses were less impacted by COVID-19 than other
  Asia-Pacific markets.
• Fifty-six per cent of Taiwan’s small businesses expect to grow in 2021,
  survey finds.
• Small businesses are neglecting opportunities to
  adopt digital payment technologies.

 

TAIPEI, TAIWAN – Media OutReach – 31 March 2021 – Small businesses in Taiwan remain
moderately resilient in the face of COVID-19-related uncertainties. In a recent
survey by CPA Australia, 46 per cent of small businesses reported growing in
2020, while 56 per cent expect to grow in 2021.

The survey canvassed the views of 4,227 small businesses in 11 markets
across the Asia-Pacific region, including Mainland China, Malaysia, Vietnam and
Australia, to understand their business strategies and outlook. Three hundred
and three Taiwanese small businesses took part.

“Taiwan’s small businesses demonstrated resilience and adaptability in
their operations last year. They are cautiously optimistic about their growth prospects in 2021 due to
Taiwan’s effective
COVID-19 response and improvements in the global economy,” said Honorary Taiwan Adviser to CPA
Australia, Mr Elic Lam FCPA.

Among surveyed markets, small businesses in Taiwan were the least likely
to be negatively impacted by COVID-19. Only 45 per cent of respondents reported
that COVID-19 had a major negative impact on their businesses in 2020, compared
to the survey average of 57 per cent. In fact, Taiwanese respondents were the most
likely to report that COVID-19 had a positive influence on their business in
2020.

“COVID-19 positively impacted some industries and adversely affected
others. For example, the social distancing measures enforced around the world
led to a surge in demand for IT and electronic products which may have
benefited some of Taiwan’ small businesses,” Lam explained.

Among the advanced economies
surveyed (Australia, Hong Kong, New Zealand, Singapore and Taiwan), small
businesses in Taiwan are the most likely to use social media to communicate
with existing customers and promote their business to potential customers (42
per cent).

However, there is room for
improvement when it comes to using new payment technologies. Only 38 per cent
reported generating more than 10 per cent of their sales through digital or
online payment technologies in 2020. This is much lower than the survey average
of 64 per cent.

“Over the past three years,
the use of digital payment technologies among small businesses in Taiwan has
not shown any significant growth, and the percentage offering such payment
options to customers is noticeably lower than other Asia-Pacific markets.
Nevertheless, some local developments point to the possibility of a
breakthrough in digital payment usage this year.

“COVID-19 has accelerated
digitalisation in the region, with more markets adopting
digital or online payment options. As an export-driven economy, where over one-third
(34 per cent) of respondents expect their revenue from overseas sales to grow
in 2021, I predict more Taiwanese small businesses will start to or accelerate
their digitalisation strategy.

“This will enable them to
take advantage of growing domestic and overseas digital transactions. In
addition, the development of the FinTech sector in Taiwan such as virtual banks
is likely to lead to the promotion of financial innovation among small
businesses.

“Our survey indicates that small businesses that grew strongly in 2020 were
much more likely to have invested in technology, and there is a strong link
between innovation and business growth. To maintain their competitiveness,
small businesses in Taiwan must keep up with the latest technology trends so
they are ready to grasp the opportunities presented by new innovations,” said
Lam.

CPA Australia recommends the following key measures for small businesses
in Taiwan:

• Consult a trusted professional adviser to improve recovery prospects.
• Implement technologies to help business grow and evaluate its
  effectiveness in phases.
• Enhance cybersecurity protections and review IT systems regularly.
• Explore opportunities to expand online and diversify into new markets in
  the region.
• Keep abreast of the latest technology developments and changes in
  consumer behaviour.

 

Download CPA Australia
Asia-Pacific Small Business Survey 2020-21