Regional business will welcome investment

24 Jul 2014

Growth uneven across NZ

As political parties release their regional strategies in the lead up to this year’s general election, regional businesses will be welcoming the increased attention on spreading growth across New Zealand.

According to the latest nationwide MYOB Business Monitor survey of over 1,000 business owners and operators, almost half of whom are located in provincial towns and cities, some regions are currently performing well, while others clearly need a boost.

In the year to February 2014, Hawkes Bay was the country’s best performing region with 52% of operators reporting growth, followed by Canterbury (47%) and Waikato (42%). In contrast, businesses in the Bay of Plenty reported revenue falls (35%) outstripping gains (21%), while just 27% of businesses in Northland saw their revenue increase.

Hawkes Bay continues to enjoy a good year, with 59% of business operators expecting revenue to increase in the 12 months to February 2015. Canterbury (57%) and Waikato (48%) are also expecting to do well this year. The Bay of Plenty is expecting some improvement, with 38% forecasting revenue growth, but still tempered by falling revenue for 23% of local businesses. Northland businesses are expecting the lowest growth levels this year, with just 27% of businesses expecting revenue to improve.

REGION

YEAR TO FEB 14 - REVENUE UP

YEAR TO FEB 14 -
REVENUE DOWN

YEAR TO FEB 15 -
REVENUE RISE FORECAST

YEAR TO FEB 15 -
REVENUE FALL FORECAST

Northland

27%

15%

27%

9%

Waikato

42%

10%

48%

11%

Bay of Plenty

21%

35%

38%

23%

Hawkes Bay

52%

8%

59%

5%

Taranaki

32%

16%

34%

11%

Manawatu/Wanganui

24%

24%

41%

15%

Canterbury

47%

14%

57%

3%

Otago/Southland

30%

24%

36%

14%

MYOB New Zealand Business Division Sales Manager Scott Gardiner says businesses in the regions will welcome increased government spending to ensure they see the benefits of economic growth.

“The economy is doing well at the moment, and many of the regions – especially those that have seen the benefits of a buoyant agri-business sector – are doing well,” says Scott Gardiner.

“However, there are several key areas in the country where SMEs are continuing to struggle. Any investment in this area will make an enormous difference.”

“SMEs are vital to our communities – they provide services, create employment and support social development. We hope to see plenty of focus from the major parties on enhancing regional prosperity through supporting local business.”

According to the Monitor, the most popular policy any party could focus on is reducing the cost of unlimited broadband, which 76% of regional business operators would support. 62% of regional business operators also believe Ultra Fast Broadband would make a positive difference to their business.

“One of the key ways we believe it would be possible to spread the benefits of growth across the regions is by increased investment in access to the digital economy,” says Mr Gardiner.

“Over half of all regional businesses don’t currently have any online presence. Alongside spending on roading infrastructure and regional investment, it would also be great to see an increased focus on ensuring regional businesses can enjoy the benefits of the online economy.”

For MYOB product information, research results, business tips, discussions, client service and more visit the MYOB website, or its blog, LinkedIn, Twitter, Facebook, Instagram and YouTube sites.

-ends-

For further comment or other information please contact:Sarah Putt, MYOB NZ Public Affairs ManagerP: 09 925 3515 / M: 029 777 0256/ E: sarah.putt@myob.com

Gerard Blank, The Agency Communications Limited DirectorP: 03 341 5841 / M: 0275 243 629 / E: gerard@theagencynz.co.nz

About MYOBEstablished in 1991, MYOB is New Zealand’s leading accounting software 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, mobile payments and more. MYOB also 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 NZ$35+ million annually on research and development. For more information, visit myob.co.nz.

About the MYOB

Business MonitorThe 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 in January and February 2014. 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.