Lack of funding blocking business innovation

With the large amount of technology available to business for processes such as recruitment and payroll, it is easy to believe that all organisations are taking advantage.

However, according to data released last month from the Australian Bureau of Statistics (ABS), perhaps this isn't the case. The ABS states one in five Australian businesses are prevented from innovating because of a lack of funds.

Business that don't invest in innovation risk losing pace with the market and will also struggle to both hire and retain the best talent. Industry authorities believe some technology and innovation is better than none at all.

Small (5 to 19 employees) and medium (20 to 199 employees) are the most likely to be affected by lack of funding and this can easily snowball into other problems such as return on investment and productivity.

ABS Representative Sue-Ellen Luke explained poor innovation is also hampered by a further factor.

"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," she said.

"For the purpose of innovation, almost 60 per cent of innovation-active businesses are sourcing ideas or information from within their businesses, and 40 per cent get ideas from clients."

The ABS regards innovation-active businesses as those that introduced specific types of innovation, such as new and improved goods and services, operational processes, organisational strategies and marketing methods.

If your business is looking for a boost innovation that won't break the bank, then recruitment software could be the answer.

Recruitment software ensures candidates are paired with jobs that best meet their skills. Placing the right person in the best position makes certain that the employee has the right environment to help the business reach its goals.