Innovation and creativity are some of the most important business objectives today. By constantly reshaping and redefining the business landscape, companies can not only be more competitive in their market, but also help their entire country remain at the global forefront.
So how are Australian organisations doing when it comes to innovating? Not so well, according to newly released insight from the Australian Bureau of Statistics (ABS). The ABS revealed that a range of factors are presenting obstacles to innovation in the country, particularly for small businesses.
The figures from the ABS reveal that one in five businesses Down Under cited a lack of funds as a "barrier to innovating" - but other factors were playing a part as well.
"A lack of funds was one barrier, and another was a lack of skilled people - either in the labour market or in the business - which affected around a quarter of small and medium sized businesses," said ABS Spokesperson Sue-Ellen Luke.
"Just under ten per cent of innovation-active businesses had a collaborative arrangement with universities or other higher education institutions."
The ABS defines an 'innovation-active business' as one that engaged in 'innovative activity' during the reference period. These activities are those that fall into one of the four types of innovation - new or significantly improved goods or services, operational processes, organisational and managerial processes, and marketing methods.
Ms Luke added that almost two-thirds (60 per cent) of innovation-active businesses source ideas or information from within the business, while 40 per cent generate ideas from clients.
Results from the survey also indicate that innovation led to reduced costs for over one in four innovating businesses in the manufacturing and agriculture, forestry and fishing industries. Innovation, however, should be a key priority for organisations in any sector.
While lack of funding can be a challenge, there are ways to go around this problem. Using debtor finance to unlock cash from your invoices, for instance, is a great way to boost cash flow and support business growth and development.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].