China's small businesses are focused on innovation, e-commerce and social media

The CPA Australia Asia-Pacific Small Business Survey shows China's small business sector is maintaining a positive economic outlook, with a strong focus on innovation, e-commerce and social media - all key drivers of economic growth.

The findings, from CPA Australia's annual Asia-Pacific Small Business Survey,  provides insights into the views of small businesses across the region and forms part of a longitudinal study that began in 2009. The new results follow extensive surveying of nearly 3,000 small business operators in Malaysia, Vietnam, Indonesia, Hong Kong, Singapore, Australia, New Zealand and mainland China.

CPA Australia chief executive Alex Malley says the survey results show there is real strength in the small business sector in China, with confidence higher than it was last year and appearing set to continue for some time.

"We surveyed small business operators in Beijing, Shanghai, Guangzhou and Chongqing. The results show that China's small businesses have had a successful 12 months, with 77% of respondents reporting that they grew over this period," Malley said.

"Looking to 2016, the results are even more positive, with 78% of small businesses expecting to grow in the year ahead. Confidence in China's economy is also very high, with 71% of respondents expecting the economy to grow in 2016."

Malley added that the positive outlook is translating into jobs, with 43% of China's small business sector reporting that they increased employee numbers in the past 12 months. "China's small businesses are the second most likely of the markets surveyed to innovate, with 32% of respondents definitely expecting to innovate through the introduction of a new product, service or process in the next 12 months that is unique to China or the world. This result is well above the survey average of 22%.

"Small businesses across China are also taking advantage of the large and growing online marketplace and with their nearly universal uptake of social media, are well-placed to out-compete less nimble and tech savvy competitors," he said.

"The range of initiatives China's government has implemented or is implementing to encourage growth and innovation, such as the Belt and Road initiative, the promotion of mass entrepreneurship and innovation, and the Made in China 2025 plan should further inculcate a culture of innovation and entrepreneurship amongst China's small businesses. Such a culture should help drive the next phase of China's economic growth story."

Key findings from the survey for China include:

• Nearly all - 97% - per cent of respondents use social media for business purposes, compared with the survey average of 81%
• Roughly a third (36%) of respondents expect to grow their e-commerce presence to a large extent, compared with the survey average of 32%
• A high proportion (90%) of respondents earned revenue from online sales, compared with the survey average of 69%