At a glance
In 2024, small businesses across the Asia-Pacific region had their best year since the COVID-19 pandemic, and many anticipate better times in 2025. They do not expect it to be easy, however.
Though respondents to the CPA Australia’s Asia-Pacific Small Business Survey 2024–25 cited challenges such as increasing costs, increasing competition and a poor overall economic environment — there is insight to be gained from the high-growth small businesses surveyed.
Here are five common strategies used by the fastest-growing businesses in the region.
1. Focus on ecommerce
Most business owners would likely say that they are focused on ensuring customers are happy — but high-growth businesses are much more likely to pursue ways to improve customer satisfaction.
This translates into a willingness to investigate and try new methods to reach their market.
High-growth business owners invest in promoting themselves online and typically generate more than 10 per cent of their sales from ecommerce, utilising new payment technologies such as WeChat Pay, Apple Pay and “buy now, pay later” options.
While many businesses use social media to market their products, these leaders will also use it to monitor competitors, receive customer feedback, communicate with existing customers and recruit new employees.
David Williamson, CEO of the Melbourne Innovation Centre, says owners can feel reluctant to invest in ecommerce due to the perceived cost and lack of understanding about the return on investment. He suggests starting small.
“Business owners could take an initial lean approach to investment in digital, using a range of low-cost tools to test their efficacy. Following this, their CPA adviser can assist in clarifying the business objective and utilising live data to conduct a cost-benefit analysis if the business owner wishes to invest more heavily,” he says.
2. Innovate, innovate, innovate
Small businesses with strong growth are significantly more likely to introduce a new product or service, and to redesign or update existing processes, than counterparts with slower growth.
53 per cent of high-growth businesses intend to bring something new to their market or the world in 2025, and say that doing so in 2024 was one of the most positive influences on their business. So where should other businesses start?
Liz Shimmin FCPA says a review of operations can help to pinpoint where change will deliver value. As CEO of Bluebird Accounting, Shimmin suggests a review of business systems and processes to “identify opportunities for technology improvements within the business”.
3. Invest in technology
A willingness to seek professional advice, especially from IT consultants, was also exemplified by high-growth small businesses. They were also more likely to invest in technology, and as a result, were likely to rapidly boost profitability.
Computer equipment was a key tech investment for high-growth businesses, along with artificial intelligence (AI) and cloud computing and mobile apps.
Because high-growth small businesses are more reliant on technology, they are also significantly more likely to have lost time or money due to a cyber attack in 2024 or anticipate one in 2025. They understand the risks of tech use and are therefore more likely to have reviewed their cybersecurity in the past six months.
Williamson notes that some governments provide help for small and medium enterprises (SMEs) to invest in technology. The Melbourne Innovation Centre is part of the Australian Government’s Digital Solutions program, which gives SME owners the opportunity to access up to four hours of one-on-one digital advice from a qualified and experienced business adviser.
Similarly, the government’s CyberWardens program provides bite-sized cybersecurity training for SMEs.
The survey found that high-growth small businesses are increasingly investing in AI, and it has overtaken spend on computer equipment as the top tech investment in markets such as Mainland China, Hong Kong and Vietnam.
In 2018, only five per cent of respondents invested in AI, but the figure grew to 28 per cent in 2024. In some Asian markets, business owners used AI tools for business advice rather than consulting a traditional business partner, consultant or bank.
4. Pursue export markets
High-growth small businesses expect strong growth in overseas sales in 2025, and 28 per cent of those surveyed said that entering new markets was one of the most positive influences on their business.
Nearly 80 per cent of Hong Kong-based businesses expect to grow revenue from overseas sales, followed by Vietnam (over 70 per cent) and India (over 60 per cent). At the other end of the scale, Australian small businesses were the least likely to expect an increase in export sales.
Williamson sees an uptick in businesses investigating digital solutions when they look to expand. “They might want to comprehensively change their business model, create greater efficiency, access new markets or look at global markets for exporting.”
5. Seek professional advice
There is a marked difference between high- and low-growth businesses when it comes to paying for professional advice. Owners of high-growth small businesses are more likely to seek expert advice, with the top three sources being an accountant or management consultant (54 per cent), business partner or mentor (34 per cent) and IT consultant (30 per cent).
Only five per cent of high-growth business owners answered that they had not sought any external advice in the past 12 months.
Shimmin has noticed a strain on cash flows this year and notes that seeking advice early on can prevent issues from exacerbating.
She often starts a conversation about why the owner started the business, what they value and what is — and is not — working for them. This can lead to a review of the client base, a discussion about whether staff members are aligned with the owner’s aims, and what issues can be repaired while others might be reduced.
“As advisers, we can bring an objective point of view.”
The CPA Australia’s Asia-Pacific Small Business Survey 2024–25 was conducted in November and December 2024 from a random sample of small business owners and senior managers of organisations with fewer than 20 employees. Responses were received from 4236 people in 11 countries.
