Future-Proofing Through Technology

COSBOA, in partnership with Square, has released the 2025 State of Small Business Report – a data-rich snapshot of how Australia’s 2.5 million small businesses are navigating a changing economic and digital landscape.

Drawing on survey responses from over 500 small business owners, insights from Square’s ecosystem, and government data, the report shows a sector that is not standing still, but stepping forward.

Key findings include:

• Digital transformation is accelerating: 85% of businesses now use at least one digital tool, with 39% adopting AI for marketing, analytics, and automation.
• Technology drives real impact: Businesses using APIs process 2.6x more in sales and handle 1.8x more transactions than those without. SaaS-enabled businesses see a 94% boost in average sales.
• Digital payments dominate: 76% of all payments are now made by card, contactless or digital methods, with cash reduced to just 24%.
• Investment appetite is rising: 63% of small businesses plan to invest in technology over the next year, with 19% expecting to spend between $5,000–$10,000.

The report highlights a sector that is resilient, adaptable, and ready to play an even greater role in driving Australia’s productivity and economic growth. But to fully unlock this potential, small businesses need targeted support – including training, IT assistance, grants, and affordable digital tools.