If the internet vanished tomorrow, most Aussie small business owners would be absolutely cactus. That’s the key takeaway from auDA’s latest Digital Lives of Australians 2025 report — and it’s a wake-up call for any business still dragging their heels on tech.

According to the research, a whopping 51 per cent of small businesses say they couldn’t operate without the internet, up from 44 per cent in 2021. And for regional operators, that figure jumps even higher to 57 per cent, overtaking metro businesses for the first time since the survey began.

One regional Queensland micro business owner summed it up best:

“For my little business, digital life is everything because without using the internet, I wouldn’t be able to run it.”

Let’s dig into the trends shaping how small businesses are working smarter, not harder — and what you can do to keep up.

Digital dependence is the new norm

Over the past five years, we’ve seen the internet go from handy to absolutely essential — not just for emails and orders, but for keeping businesses afloat in a tough economy.

In 2025:

64 per cent of workers say they can’t do their job without the internet (up from 58 per cent in 2021).

83 per cent of Aussies with side hustles say they couldn’t run them without being online.

72 per cent of people are using at least one online tool to help cut costs — think price comparison sites, discount codes, and cashback apps.

So whether you’re streamlining admin, scouting for cheaper suppliers, or starting a digital side gig to make ends meet, the internet’s become a business lifeline.

AI’s gone mainstream, and it’s saving time, not stealing jobs

If you’ve dipped a toe into ChatGPT or used an AI tool to whip up social posts or meeting summaries, you’re not the only one. The report shows 56 per cent of Aussies now use AI. That’s up from just 24 per cent in 2023. And small businesses aren’t far behind, with 57 per cent using AI in some capacity.

Teachers, tradies, and solopreneurs alike are finding clever ways to automate repetitive tasks and spark fresh ideas.

Mirna, a teacher from a private school, shared how she uses AI up to five times a day to help with everything from lesson planning to crafting classroom activities:

“Being able to use AI when preparing classroom materials really helps my creative process.”

That said, there’s still a healthy dose of caution. 70 per cent of people want more control over how their data is used to train AI, and 64 per cent are calling for stronger safeguards.

AI is a powerful productivity tool, but Aussie business owners want to see it regulated, not run wild.

Cyber threats are real, but small businesses aren’t protected

Despite growing digital confidence (52 per cent of Aussies now feel very confident online), cyber worries aren’t going away. In fact:

83 per cent believe cyber criminals are getting more sophisticated.

58 per cent are concerned about online privacy.

67 per cent avoid at least one online activity due to cyber concerns.

Yet only one in five small businesses has a cyber policy in place, and 21 per cent don’t spend a cent on cyber security. That’s a big risk in an increasingly connected world.

Take Raf, a café owner in the NT, who learnt the hard way after a malware attack brought his business to a standstill. Now, he spends around $6,500 a year on virus protection, cyber training, and a consultant:

“Rather than counting the cost of a cyberattack, I’d rather be proactive and invest money to make sure one doesn’t occur.”

It doesn’t have to cost thousands, though. Free tools, such as multifactor authentication (now used by 73 per cent of consumers) and regular password updates, are simple ways to protect your business.

Digital skills still lag

With more businesses online, demand for digital skills is only growing. The report found that 81 per cent of small businesses see cyber skills as crucial for their future, and workers with those skills are in hot demand.

But here’s the gap: just 17 per cent of working men and 10 per cent of working women feel they have high cyber security capabilities. That’s a huge opportunity for upskilling, especially for young Aussies or anyone eyeing a career shift.

And the gender divide is real. Fewer women feel confident pursuing tech careers, although women aged 18–34 are bucking that trend. If you’ve ever thought “tech isn’t for me,” it might be time to think again.

Embrace digital, but don’t go it alone

Whether you’re running a solo side hustle or managing a growing team, your business likely runs on digital more than ever before. From cloud tools to AI, online security to digital IDs, the online world is reshaping how we work.

The good news, however, is that Aussies are leaning in. We’re getting savvier, more confident, and more connected, but support, training, and smart investment are essential. Especially for small business owners who wear a million hats.

You can read the full report here

Need help making your business cyber-safe? Check out free resources at cyber.gov.au or visit our cyber security hub for more info.

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