New Zealand Small Businesses Fall Further Behind Asia-Pacific Peers As Growth Gap Widens

• New Zealand small businesses rank last out of 11 Asia-Pacific markets for growth for the second consecutive year
• Only 38 per cent reported growth in 2025, compared with an Asia-Pacific average of 62.5 per cent
• Two-thirds of owners are aged over 50 – the oldest profile in the region and just 5 per cent plan to innovate in 2026

New Zealand’s small businesses have ranked last out of 11 Asia-Pacific markets for growth for the second-year running, according to CPA Australia’s 18th annual Small Business Survey of more than 4,100 businesses across the region.

Small businesses make up 97 per cent of all enterprises in New Zealand and employ more than a quarter of the workforce, making their performance central to the country’s economic outlook.

Only 38 per cent of New Zealand small businesses reported growth in 2025, up marginally from 36 per cent the previous year, but well below the survey average of 62 per cent.

CPA Australia’s Regional Head, Rick Jones, said the results highlighted persistent challenges facing New Zealand’s small business sector.

“While small businesses across most of the Asia-Pacific are growing, New Zealand remains at the bottom of the table. In Vietnam, 84.5 per cent of small businesses grew last year. In Singapore, the figure was 43.5 per cent. In New Zealand, it was 38 per cent. The gap is significant and it’s not closing.”

Forward-looking indicators are equally concerning. Just 5 per cent of New Zealand’s small businesses plan to introduce a new product, service or process in 2026, down from 8 per cent a year earlier and well below the survey average of 29 per cent. Hiring has also stalled, with only 7 per cent expanding their workforce in 2025 compared with 36 per cent regionally.

Rising costs remain the primary concern for New Zealand’s small businesses, squeezing margins and lowering growth.

“Behind these numbers, the age profile of New Zealand's small business owners is a key factor,” Mr Jones said.

“New Zealand has the oldest small business ownership profile in our survey, with 68 per cent of owners aged 50 or over, compared with a regional average of just 30 per cent.

“Among owners under 40, 71 per cent reported their business grew in 2025. For owners over 60, just 25 per cent did. This is not about age in isolation - it reflects the digital capability, risk appetite and growth orientation that younger business owners tend to bring.”

Technology adoption remains a persistent weakness. Only 32 per cent of New Zealand small businesses generated more than 10 per cent of their revenue from online sales in 2025, less than half the survey average. Just 26 per cent said their technology investments improved profitability - the lowest result in the region.

Despite the challenging results, 79 per cent of New Zealand’s small business owners remain satisfied with running their business. The survey indicates that lifestyle motivations - being their own boss, work–life balance and pursuing a passion are more important than financial gain for most owners.

Mr Jones said the data pointed to clear priorities for lifting small business performance.

“The data tells a clear story. New Zealand’s small businesses are falling behind their Asia-Pacific peers, and the gap is widening on the measures that matter - growth, innovation, technology adoption and job creation.

“Growth doesn’t have to mean rapid expansion. For many small businesses, it’s about having the tools and support to take the next step – whether that’s hiring another employee, moving sales online, or investing in a system that saves them time.

“Lifting small business technology adoption should be a central priority. Our data consistently shows that businesses which invest effectively in technology grow faster, hire more people and are more likely to innovate. Countries like Singapore have demonstrated what targeted digital support programmes can achieve - there are proven approaches in our region that could work here.

“Addressing New Zealand’s ageing ownership profile is equally important. Our report suggests a ‘First Business Owners’ programme to connect aspiring younger business owners with accredited advisers, mentoring and access to finance – helping build the next generation of small business operators.” 

About the CPA Asia-Pacific Small Business Survey

CPA Australia’s 18th annual Asia-Pacific Small Business Survey was conducted online during November–December 2025, surveying more than 4,000 small businesses across 11 markets: Australia, China, Hong Kong SAR, India, Indonesia, Malaysia, New Zealand, the Philippines, Singapore, Taiwan and Vietnam. The New Zealand sample comprised 309 respondents.

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