Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Kiwi businesses confirm growth predictions

April 11, 2014

Global Entrepreneur Indicator Survey: Kiwi businesses confirm growth predictions

Predictions six months ago of big things for the New Zealand economy have been borne out by business results according to an international survey of entrepreneurs.

The Global Entrepreneur Indicator published this month (Apr. 2014) for the six month period to 31 March shows more Kiwi entrepreneurial businesses have increased both their profits and revenues than the global average.

The survey also shows our entrepreneurs are more positive about our country’s economic environment with 95 per cent predicting improvement in the next six months compared with only 48 per cent globally.

The indicator is generated from a survey of every chapter of the world-wide Entrepreneurs’ Organization (EO) including its New Zealand chapter.

Tony Falkenstein, the communications chair of the NZ Entrepreneurs’ Organization, says the survey results confirm predictions six months ago of a marked improvement in New Zealand’s trading conditions.

“Compared to entrepreneurs worldwide, more of our businesses are profitable, more have increased part time staff, more have grown their revenues and more have increased their access to capital,” Falkenstein says.

“That confirms the confidence predicted by New Zealand entrepreneurs in our previous survey six months ago. Even better, that confidence is continuing with local businesses predicting more good things to come in 2014.”

The survey shows Kiwi entrepreneurs expect to grow both full time and part time staff numbers and continue to improve their profits above average.

Falkenstein says debt loads are expected to decrease although growth in that area during the past six months indicates an inclination to borrow for working capital “which is a good thing”.

“Forty-three per cent of our businesses have also increased their access to capital in the past six months and New Zealand entrepreneurs also expect that demand for funds to continue this year.”

He says 97 per cent expect revenue growth in the next period compared to only 83 per cent of global entrepreneurs. Mirroring results from the previous six months survey, more than 90 per cent of New Zealand entrepreneurs have “a proclivity” to start a new business in the current year.

“The Global Entrepreneur Indicator reflects the positive attitude of New Zealand entrepreneurs and this reinforces the results from last year’s survey. It’s all good news because it is entrepreneurs - more than any other business sector - who create growth in the NZ economy.”

Full Global Entrepreneur Indicator results below:

Chapter Data Report: EO New Zealand

Survey period: March 2014

Change in number of full-time employees during past six months:

Global ResultsEO New Zealand Results
Increased55.43%54.05%
Decreased11.02%10.81%
Stayed the
same
33.55%35.14%

Predicted change in number of full-time employees during coming six months:

Global ResultsEO New Zealand Results
Increase67.34%86.49%
Decrease3.61%2.70%
Stay the same29.06%10.81%

Change in number of part-time or contract employees during past six months:

Global ResultsEO New Zealand Results
Increased47.65%59.46%
Decreased5.98%8.11%
Stayed the same46.37%32.43%

Predicted change in number of part-time or contract employees during coming six months:

Global ResultsEO New Zealand Results
Increase54.16%70.27%
Decrease3.97%0.00%
Stay the same41.87%29.73%

Change in net profit during past six months:

Global ResultsEO New
Zealand
Results
Increased61.18%78.38%
Decreased15.69%5.41%
Stayed the same23.13%16.22%

Predicated change in net profit during coming six months:

Global ResultsEO New
Zealand
Results
Increase80.86%88.57%
Decrease3.70%2.86%
Stay the same15.45%8.57%

Change in debt load during past six months:

Global ResultsEO New
Zealand
Results
Increased16.13%18.92%
Decreased26.23%24.32%
Stayed the same57.65%56.76%


Predicted change in debt load during the coming six months:

Global ResultsEO New Zealand
Results
Increase11.29%10.81%
Decrease30.57%24.32%
Stay the same58.14%64.86%

Change in your business’s access to capital during past six months:

Global ResultsEO New
Zealand
Results
Increased33.47%43.24%
Decreased5.91%8.11%
Stayed the same60.62%48.65%


Predicted change in your business’s access to capital during coming six months:

Global ResultsEO New
Zealand
Results
Increase40.85%45.95%
Decrease2.05%2.70%
Stay the same57.10%51.35%

Change in your business’s revenue during past six months:

Global ResultsEO New Zealand Results
Increased68.06%72.97%
Decreased10.54%2.70%
Stayed the
same
21.40%24.32%

Predicted change in your business’s revenue during the coming six months:

Global ResultsEO New Zealand Results
Increased83.34%97.30%
Decreased2.93%2.70%
Stayed the
same
13.73%0.00%

Predicted change in your country’s economic environment during coming six months:

Global ResultsEO New
Zealand
Results
Improve47.88%94.74%
Deteriorate11.83%2.63%
Stay the same40.29%2.63%

Current proclivity to start a new business:

Global ResultsEO New
Zealand Results
Would start a new business84.42%91.67%

About Entrepreneurs Organisation NZ
Entrepreneurs Organisation NZ is the catalyst that enables entrepreneurs to learn and grow from each other, leading to greater business success and an enriched personal life. EO NZ was founded in 1998 and is a chapter of a US-based Entrepreneurs Organisation, a dynamic global network of more than 9,500 business owners in 42 countries. There are 50 members of the New Zealand chapter with an average age of 46 employing more than 1,600 staff representing industries from accounting through to waste management. Globally, if EO were a country it would be in the top 25 nations ranked by GDP. Membership in one of EO’s 120 chapters is by invitation only. Find out more at www.eoauckland.org

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news