Cost and tough government regulation is preventing them from creating more technologically innovative businesses, say small and medium sized businesses.
Accounting software firm MYOB has released a digital business survey, which involved more than 1000 companies.
A third of participants said cost was a barrier to adopting new technology, while 19 percent said regulation - including around employment - was a hassle.
MYOB chief executive Tim Reed said no matter what size a business was, a plan to innovate was a must have.
"The answer of how much should be invested is different for each business and it depends on other concerns in their business, the goals and desires of the business owner etc."
Mr Reed said regulation was also on employers' minds, too.
"There is regulation around competition in various industries, telecommunications being one, that holds the overall economy back," he said.
