New Zealand’s female SME operators are outperforming men in several key areas, demonstrating the strength of their contribution to the local economy, a national survey has revealed.
The latest MYOB Business Monitor Report shows that almost a third (30%) of SMEs operated by women increased their revenue in the 12 months to August 2013, while 44% maintained revenue levels. This compares to 30% and 42% of male SME operators.
Less than a quarter (23%) saw revenue fall in the year to August 2013, a slight advantage over their male counterparts, 25% of whom saw a drop in revenue. 3% of each gender weren’t sure of their revenue results.
“The financial performance results our research uncovered are an extremely positive signal to women, especially those thinking of starting up a new business and those with growth aspirations,” says MYOB NZ national manager Enterprise Division, Allison Fairkettle.
“What it clearly highlights is the strength of businesses that have a woman at the helm. Female business owners are playing a major role in the success of the local and national economy, as they build their influence and extend their take-up of enabling technologies.”
According to the Monitor, 43% of female SME operators expect revenue to increase in the next 12 months, with just 7% expecting a fall. Here, women have stronger expectations than men, for whom 42% expect revenue to increase in this period, while significantly more – 12% – are forecasting a fall in revenue.
The confidence of female business operators appears to be due in part to a solid August to October quarter, with 37% reporting more work or sales than they would normally have at this time. Just 12% reported less work in the pipeline than usual, compared to 19% of men.
The best performing female-led businesses were in Auckland, where 40% saw revenue increase, closely followed by Christchurch (39%), and then Wellington (31%). Women in business in the rest of New Zealand were slightly off the pace, with 21% reporting revenue up. In comparison, 27% of all SMEs outside the main centres saw revenue increase in this 12month period.
“There is a catch. Despite their edge in performance, we are not seeing the same levels of confidence among women business operators when it comes to short-term improvements in the economy,” says Mrs Fairkettle.
In the latest Monitor, 21% of women in business said they expected the economy to improve from its current position in 12 months or less, compared to 32% of men. Almost two-thirds (63%) expected an improvement in the New Zealand economy to take more than a year (56% of men).
“Women are also less likely to feel they have the support of the Government when it comes to their business, which may affect how confident they are overall in the economy,” Mrs Fairkettle said.
Just 17% of women in business say they are satisfied with the Government’s support (compared to the SME average of 24%) and 31% are dissatisfied (compared to 28% of all SMEs).
The MYOB Business Monitor is a twice-yearly survey of more than 1000 New Zealand businesses, of which just over 400 are women. The results were discussed at MYOB’s inaugural Women In Business luncheon (#WIBNZ) yesterday, at which Mrs Fairkettle spoke about the challenges and opportunities open to women in business, one of the benefits being the ability to manage work/life balance effectively.
“Although it can be incredibly hard work, running a business is also clearly rewarding for those women who choose to own and operate a company of their own,” says Mrs Fairkettle. “Almost two-thirds - 64% - say they are happy with their work/life balance. 17% are dissatisfied and the remaining 19% are neither satisfied nor dissatisfied.”
According to the MYOB Business Monitor, the top 3 reasons women start a business are:
- 37% were looking for a total lifestyle change from what they were doing previously
- 24% have established their business as an investment strategy for the future
- 21% have taken the opportunity to make money from a hobby or an interest
The Monitor also looks at the use of digital media. Over a quarter of women SME operators (27%) use a social media site to promote their business, compared to 21% of men. 20% are using the cloud for business, while only 16% of men use cloud-based services. Women in business are also more likely to use internet technologies to accept online payments (52%, compared to 49% of all SMEs) and promote their business via search engine optimisation or marketing (29%, compared to 25% of all SMEs).
“Increasingly, we are seeing women shaping their working life around their own requirements and commitments, and the use of technology is playing a vital role in this,” says Mrs Fairkettle.
“It’s fantastic to see women achieving so much for the New Zealand economy at present and exciting that they are positioning themselves well to take advantage of future opportunities and growth in the local market.”
“However at the same time it’s important that this contribution is recognised and that support, especially from Government, is focused on creating an environment in which both female and male business owners can take risks and thrive.”
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About MYOB New Zealand
Established in 1991, MYOB is New Zealand's largest business management solutions provider. It makes life easier for approx. 1.2 million businesses across New Zealand and Australia, by simplifying accounting, payroll, tax, practice management, CRM, websites, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly in cloud computing solutions, and now spends more than NZ$35 million annually on research and development. In 2013, MYOB expanded its offerings with the acquisition of accounting solutions provider BankLink. For more information, visit myob.co.nz.
About the MYOB Business Monitor
The MYOB Business Monitor is a national survey of 1,000+ New Zealand small and medium business owners and managers, from sole traders to mid-sized companies, representing the major industry sectors. It has run since 2009, commissioned to independent market research firm Colmar Brunton. This most recent survey ran late January/early February 2013. The Monitor researches business performance and attitudes in areas such as profitability, cash flow, pipeline, technology usage and the government. The weighting of respondents by both geographical location and sector is based on overall market proportions as established by Statistics New Zealand and is drawn from an independent survey group, which includes both MYOB clients and non-clients.