Uptake of technology critical to NZ business

Uptake of technology critical to NZ business

Research has found that more than half of Kiwi’s have improved their productivity after their companies implemented cloud-based tools. Many small businesses in New Zealand however feel that it is expensive and time consuming to implement new technology and are held back by a lack of information on how to properly use new technology.

Small business platform Xero partnered with the New Zealand Institute of Economic Research to explore how using technology might help New Zealand to increase their productivity. The company found that if there was a 20% uptake of New Zealand businesses using cloud-based technology it would likely add $6.2 billion to the GDP growth of the country.

Small to medium businesses account for close to half of the country’s GDP, so increasing their capacity for production would hugely improve the growth of New Zealand GDP. Xero has said that the challenge lies in trying to encourage small businesses to invest in technology.

Research has found that around half of small business owners think that the cost of cloud-based systems is too high for their businesses to implement and a number of others felt they did not have the knowledge or the time to properly implement them.

Xero has pointed out that it is necessary to help businesses overcome barriers to technology uptake as for many businesses it will be integral to their survival and to help New Zealand’s economy grow. Cloud-based technologies can help businesses to become more profitable and adaptable, helping them to diversify the way they do business and make their money. Research has also shown that many businesses that have implemented new technology wish they had done it sooner. To continue to grow, it’s essential that New Zealand small to medium businesses implement and use new technologies.