Growth steady for small businesses according to survey
09 Oct 2017
37 per cent report an increase in revenue since last year
46 per cent expect revenue to increase over the next 12 months
New Zealand’s small to medium enterprises (SMEs) are enjoying a
period of sustained growth with the expectation this will continue
over the next 12 months, according to the latest research by leading
accounting software provider MYOB.
In the latest MYOB Business Monitor Economic Snapshot of 400 SMEs
nationwide, 37 per cent reported a revenue increase in the last year,
tracking slightly up from 36 per cent in March, with almost half (46
per cent) expecting their revenue to increase over the next 12
Fewer businesses are struggling in the current environment, with
just 15 per cent of SME operators reporting their revenue decreased
over the last year, down from 19 per cent in February, and 20 per cent
in September last year.
MYOB New Zealand General Manager Carolyn Luey says SMEs have worked
hard to put themselves in this position, and many are now enjoying a
period of steady growth.
“Since they recovered from the GFC, we’ve seen the performance of
local SMEs steadily improving. And looking ahead, local businesses see
no reason for their stellar run to end.”
Ms Luey says the survey also reinforces that growth is not just
confined to the main centres, with the regions also showing
“A trend we’ve seen over the last few years of our research is that
SMEs across many of New Zealand’s regions are experiencing a period of
“For example, 44 per cent of operators in Waikato and the Bay of
Plenty saw their revenue improve in the last 12 months, with similar
levels of growth seen in Otago/Southland.”
On the back of their own performance, the MYOB Business Monitor
Economic Snapshot highlights that SMEs are confident in the New
Close to half (42 per cent) believe New Zealand’s economy will
improve over the next 12 months, while almost a quarter (23 per cent)
think it will decline.
“Confidence in the economy from the small and medium-sized business
sector is good for the whole country. It means more businesses are
willing to invest and therefore increase employment opportunities,”
Ms. Luey says.
However, Ms. Luey says some sectors are less positive – particularly
those which are exposed to the slowing property market.
“Only 32 per cent of businesses in the construction and trades
sector expect the economy to improve next year, while 29 per cent say
it will decline,” says Ms Luey.
“By contrast, the tourism sector is clearly preparing for another
good year, with half of all businesses in the retail and hospitality
industry expecting the economy to grow.”
While there is growing confidence in the economy, the new Government
will have to look carefully at what they can do to help maintain it,
especially in terms of policies focused on education, training and
“This is really noticeable in terms of finding the right people to
fill skills gaps,” says Ms Luey. “Forty-one per cent of respondents
said their industry is experiencing a skills shortage – and in areas
like Canterbury where the rebuild is ongoing, almost half (47 per
cent) of SMEs said finding staff with the right skills is one of their
“According to our latest MYOB Snapshot, New Zealand’s larger SMEs –
those who employ 10 or more people – are finding it the hardest to
recruit the staff they need.”
Of those who employ 10-19 people, 68 per cent said they find it
difficult to find suitable staff, while 32 per cent of businesses with
2-4 employees said the same.
“The ongoing skills shortage is continuing to bite across a range of
industries, with 67 per cent of the transport industry, 50 per cent of
the retail and hospitality sector and 47 per cent of the construction
and trades reporting a skills shortage in their industry.”
“The skills gap is a huge issue facing the new government. It will
need to look at what policies are needed to support SMEs growth and
attract the right people to work across a broad range of
For further comment or other information please contact:
Conor Roberts, MYOB NZ Communications and Public Affairs
M: 021 124 6004 / E: email@example.com
Gerard Blank, The Agency Communications Limited Director
P: 03 341 5841 / M: 0275 243 629 / E: firstname.lastname@example.org
MYOB (ASX: MYO) is a leading cloud based business management solutions provider. It makes business life easier for approximately 1.2 million businesses across Australia and New Zealand 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 in 2015 was awarded the BRW award for the most innovative large company for 500+ employees and placed 2nd in BRW’s Most Innovative Companies Award list across all categories nationally. For more information, visit myob.co.nz or follow @MYOB on Twitter.
About the MYOB Colmar Brunton Business Monitor Snapshot
The MYOB Business Monitor is a national survey of 400 New Zealand small and medium business decision makers, from sole traders to mid-sized companies, representing the major industry sectors. Commissioned to independent market research firm Colmar Brunton this survey ran from 5th-6th September 2016. The Monitor Snapshot provides insight into issues currently affecting New Zealand’s SMEs, as well as information on performance and the economy profitability. 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.