Photo by Remi Yuan on Unsplash

CPA Australia’s 10th annual Asia-Pacific Small Business Survey found that small business owners in Taiwan have low confidence in the local economy and low expectations for business growth in 2019. Only 44% of the respondents expect economic growth and only 10% expect revenue growth from overseas market. But 63% expect to grow their business based on their own performance.

The survey also found that more than 40% expect the trade war to negatively impact their business and only 29% plan to hire additional staff in 2019. CPA Australia Honorary Taiwan Advisor Elic Lam explains that Taiwan is an export-oriented economy and the ongoing trade tensions is naturally a major concern.

The operations of Taiwanese small business owners are significantly affected by increasing competition, poor economic environment and increasing costs. Thus, many of them are taking a cautious approach and are focusing on controlling costs, retaining good employees and maintaining good relationships with existing customers. In terms of digital payment, only 31% Taiwanese small businesses received at least 10% of their sales through such technology in 2018. They ranked last in the Asia Pacific Region. Lam believes that Taiwanese regulators and business community should create a safe online transaction environment in order to take advantage of emerging opportunities and improve their competitiveness in the digital era.