Small firms expect to do more business, lift investment and hire more staff in 2016 as confidence rebounds strongly into the New Year according to ANZ’s quarterly Business Micro Scope survey of small businesses. Business confidence across New Zealand’s small firms rose to +14 per cent in December, reversing a dip to -23 per cent in the previous quarter. Fred Ohlsson, ANZ’s MD of retail and business banking, said: “Small firms finished last year strongly and are telling us they see
a prosperous year ahead in 2016.
“Perhaps the most promising thing about this new wave of optimism is that it’s broad-based, with sentiment improving across all five sectors, led by services, and across all major regions.
“Underpinning this are notable improvements in firms’ expectations for their own activity, employment, investment and profit. These are key drivers of economic expansion and bode well for the performance of small businesses and the broader economy in 2016.
“Small firms account for 90 per cent of Kiwi businesses and employ nearly a third of all NZ workers. What owners are telling us is an important indicator of NZ’s prospects for the year ahead, pointing to new jobs, investment and growth in the Kiwi economy.”
Highlights from the December 2015 ANZ Business Micro Scope survey of small firms
• The South Island outside Canterbury (up 22 points to +27 per cent) is most optimistic, with Wellington (up 13 to +26 per cent) the most upbeat out of the main centres. Auckland and Canterbury recorded modest gains.
• Sentiment rose across all sectors, led by services (up 11 points to +24 per cent). Construction had the biggest turnaround (up 16 to +18 per cent). Manufacturing (up 7 to +16 per cent) and retail (up 4 to +14 per cent) were up modestly. Agriculture (up 10 to -5 per cent) remains slightly negative, though markedly improved.
• Regulation, low turnover, competition and lack of skilled staff were ranked as the big four challenges facing business owners over the coming year, with each cited by between 14 per cent and 18 per cent of respondents. These have regularly been rated the top four challenges in recent years.
