Mia McCarthy is constantly launching new products for her dairy business, Yummia. "I have 20 products I'd love to bring out tomorrow but it's finding the time, money and shelf space," she says. 
McCarthy is an exception among Aussie entrepreneurs, with small businesses lagging well behind their Asia-Pacific competitors when it comes to innovation, according to CPA Australia.
The survey of 3000 small business operators in Australia, Indonesia, China, Malaysia, Vietnam, Hong Kong, Singapore and New Zealand has been launched ahead of the Prime Minister's innovation statement on Monday.
The research found that on one key measure of innovation - launching new products - Australian small businesses are significantly behind their neighbours, with only 5 per cent of Australian small businesses planning to introduce a product, service or process in the next year that is new to the Australian market or the world. This compares with 46 per cent of small businesses in Indonesia, 32 per cent in China, 29 per cent in Malaysia and 26 per cent in Vietnam.
It also found that almost 50 per cent of Australian small businesses do not use any social media, nearly six in 10 do not sell online, and fewer than one in 10 expect to increase their e-commerce presence. In Asia, more than 93 per cent use social media, 83 per cent generate revenue from online sales and more than 40 per cent will expand e-commerce transactions.
McCarthy started Yummia after noticing ready-made bircher muesli wasn't for sale in stores. She was making bircher muesli at home while studying at university, and was eventually spotted by a buyer for Woolworths at a trade show. Now Yummia products are stocked in Woolworths and Caltex stores nationwide and the business turns over $500,000 a year.
McCarthy says product innovation has been key to her success. "In food, consumer trends change relatively quickly. It's always important to think about what else you can give your consumer and how you do things better."
CPA Australia chief executive Alex Malley says the lack of innovation uncovered by the research shows the "critical importance" of the innovation statement.
"Malcolm Turnbull is absolutely right to draw a link between Australia's future prosperity and our ability to leverage innovation to improve our country's international competitiveness," Malley said. "Yes, there are some very innovative Australian small businesses ... they are, unfortunately, the exception."