New Zealand Small Business Continues to Falter

19 November 2014

New Zealand Small Business Continues to Falter

A new survey from CPA Australia has found that New Zealand’s small business sector continues to falter.

Chief executive Alex Malley says the sixth annual Asia Pacific Small Business Survey shows that over the last year New Zealand small businesses have struggled compared to their competitors in China, Indonesia and Vietnam.

“One of the most disappointing findings of this year’s survey is that less than half of New Zealand’s small businesses (47 percent) have seen their business grow over the last 12 months, 10 per cent lower than expectations for growth from last year," Mr Malley said.

"The most cited reasons for a lack of growth was a poor overall economic environment and a choice not to grow their business.

“Unfortunately this negative sentiment is likely to continue with only half of small businesses in New Zealand expecting their business to grow over the next 12 months.

“While these findings clearly show the sector is struggling, there is a high level of optimism about the ongoing strength of the New Zealand economy, with 62 per cent of respondents expecting growth in 2015.”

Other key findings from the CPA Australia Asia Pacific Small Business Survey for New Zealand include:
• 15 per cent of New Zealand small businesses expect to increase staff numbers over 2015
• 33 per cent of respondents stated that they were likely to seek external financing over the next 12 months
• Only 46 per cent of New Zealand respondents stated that they use social media for business purposes such as communicating with customers

"The weak survey results for small businesses in New Zealand are in stark contrast to the positive outlook and results seen in other key markets in our region.

"In Indonesia, 82 per cent of small businesses expect to grow next year, for Vietnam the number is 78 per cent while in Mainland China it's 66 per cent.

"Digital innovation and e-commerce is another area of concern. Where less than half of New Zealand small businesses are utilising social media for businesses purposes, that number is 90 per cent or greater in Indonesia, Mainland China, Vietnam and Malaysia.

"The results of our latest small business survey underscore that we live in a very competitive Asia Pacific region and that New Zealand is being out-competed in many respects by our neighbours.

“With six years of data now at our fingertips, this survey is an excellent tool for policy makers and industry to compare the experiences of small business across eight international markets and ensure that we have the settings right to enhance efficiency and maximise investment.”

The CPA Australia Asia Pacific Small Business Survey provides annual insight into the views of small businesses across Australia, Mainland China, Hong Kong, Indonesia, Malaysia, New Zealand, Singapore and Vietnam and form part of a longitudinal study that began in 2009. The full 2014 report is available for download at: cpaaustralia.com.au/smallbusiness. A summary of key findings for New Zealand can be found on page 8 of the report.

About CPA Australia
CPA Australia is one of the world's largest accounting bodies, representing more than 150,000 finance, accounting and business professionals in 121 countries. With a proud 128-year history, CPA Australia supports its members with education, training and technical support, and has a particular emphasis on providing rewarding career pathways for top accounting graduates. CPAs are recognised as strategic business leaders and New Zealand members include senior finance professionals from some of the country’s largest public and private sector organisations. CPA Australia advocates not only on behalf of its members, but also on behalf of public interest. For more information please visit www.cpaaustralia.co.nz

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