The Digital Divide: Many Australian Businesses Lack Functional Websites

In today’s digital age, having an online presence is crucial for businesses to thrive. However, a surprising number of Australian businesses, particularly small ones, are still operating without a functional website. This article explores the current landscape, reasons behind this trend, and its implications for businesses.

The Current Situation

Recent studies paint a concerning picture of the digital presence of Australian businesses:

• According to GoDaddy, 59% of small businesses in Australia don’t have a website[1][4]. This percentage increases to 65% for businesses in regional areas[4].
• A Telstra report surveying over 1,000 small to medium-sized businesses found that only 50% of Australian small businesses have a website[3].

These statistics reveal a significant digital gap in the Australian business landscape, potentially putting many companies at a competitive disadvantage.

Reasons for Lack of Websites

Several factors contribute to this digital hesitancy:

1. Perceived Size: 44% of businesses without a website believe their business is too small to need one[4]. This perception is more common among male business owners.
2. Cost Concerns: 30% of small business owners think having a website is too expensive[4]. On average, they expect a professional web designer to charge around $3,200 for a fully functioning business website.
3. Time Constraints: 17% of business owners cite lack of time to build or manage a website as a reason for not having one[4].
4. Generational Differences: There’s a digital generational divide in cost expectations. Millennials expect higher professional website fees ($4,347) compared to Gen X ($3,208) and Baby Boomers ($2,553)[4].

Impact on Business

The lack of a website can significantly impact a business’s growth and customer acquisition:

• 62% of customers will stop considering a small business if they can’t find information about it online[3].
• 83% of customers believe using search engines is ‘important’ or ‘very important’ when finding a business[3].
• 47% of customers under 40 use a search engine to find or research a small business at least once a day[3].
• For professional service firms, 80% of potential clients check out a company’s website before engaging their services[3].

Future Outlook

Despite the current gap, there’s a growing recognition of the importance of websites:

• 47% of businesses without a company website are considering building one within the next 12 months[4].
• 43% of small businesses are planning to invest in the performance of their website in 2023[5].

Factors that would encourage businesses to create a website include:

• A quick and easy process (39%)
• Access to an easy-to-use DIY website builder (36%)
• Having a professional build it for them (34%)[4]

Challenges for Existing Websites

Even businesses with websites face challenges:

• 70% of small businesses with company websites report having issues with their sites[4].
• The main problem is the time required to update incorrect or out-of-date information[4].

Conclusion

The digital landscape for Australian businesses shows a clear divide between those embracing online presence and those lagging behind. While many small business owners recognize the importance of having a website, concerns about cost, time, and perceived necessity continue to be barriers. As consumer behavior increasingly shifts towards online research and purchasing, it’s crucial for businesses to bridge this digital gap to remain competitive and accessible to their target audience.

As the business world continues to evolve, having a functional website is no longer a luxury but a necessity for growth, customer engagement, and long-term success. Australian businesses that invest in their online presence now will be better positioned to thrive in the increasingly digital marketplace of the future.

Citations:
[1] https://www.newsxtend.com.au/2021/06/02/small-business-website-statistics/
[2] https://www.statista.com/statistics/654857/australia-small-businesses-with-websites-by-business-size/
[3] https://www.businessgrowthhq.com.au/blog/half-of-australian-small-businesses-dont-have-a-website-surely-not/
[4] https://www.godaddy.com/resources/au/stories/study-reveals-why-59-of-australian-small-businesses-dont-have-a-website
[5] https://www.forbes.com/advisor/au/business/software/website-statistics/