Small business fears over NZ’s economic future
Veda Advantage survey reveals small business fears over New Zealand’s economic future
11 September 2008 – Seventy-three percent of small to medium business (SMEs) owners have concerns about the effect New Zealand’s economic future will have on them in the coming year, according to a survey conducted by Veda Advantage, New Zealand’s largest credit information provider.
Veda Advantage’s Small Business Economic Impact survey samples SMEs across a broad range of industries, including retail, manufacturing, trade, hospitality and primary industries. The findings reveal the extent to which the sample group, representing the core of New Zealand’s economy, feel the economic downturn has affected them.
Veda Advantage New Zealand Director John Roberts says, “While recessionary economic conditions have an impact on us all, it is the smaller businesses that can be most heavily affected. The current economic climate is causing cash flow issues for many SMEs, as evidenced by the 41% of businesses that note their debtors are taking longer to settle accounts compared with a year ago. In addition, 26% of businesses are finding their own debt levels harder to service than a year ago, with 8% admitting to having real difficulty managing business debts. With three quarters of those surveyed worried about how the economy will affect them over the next year, it would appear that business confidence for the future is quite low amongst these smaller companies that are so integral to the New Zealand economy.”
about the survey sample
> 300 business owners/managers interviewed
> Company size ranges from <5 to >20
> Turnover range from <$500k to >$5m
> Industries surveyed
> Agriculture, Forestry, Fishing & mining (2%)
> Manufacturing (22%)
> Electricity, Gas, Water & Waste services (3%)
> Construction (8%)
> Wholesale Trade (5%)
> Retail trade (9%)
> Accommodation & Food Services (8%)
> Transport, Postal & Warehousing (7%)
> Information Media & Telecommunications (4%)
> Financial & Insurance services (3%)
> Rental, Hiring & Real Estate services (4%)
> Professional, Scientific & Technical services (12%)
> Administrative & Support services (1%)
> Health Care & Social Assistance (3%)
> Arts & Recreation services (2%)
> Trade services (8%)
Veda Advantage – www.vedaadvantage.com
Veda Advantage facilitates credit reference checks for New Zealand’s major banks and lenders, and underpins the ability of consumers to exercise choice in relation to consumer credit products. Veda Advantage holds files on around 97.5% of the individual credit-active population and 100% of the commercial credit-active population in New Zealand.
You can apply for a copy of your credit file at www.mycreditfile.co.nz or by calling 0800 692 733. A $23 express delivery service fee is payable if the file is needed urgently, or otherwise the file will be available within 10 working days.