Govt scores higher satisfaction ratings from SMEs for COVID-19 response

The New Zealand Government received a higher satisfaction rating for its quick action in offering targeted relief for small to medium-sized businesses during the lockdown.

The March MYOB Business Monitor survey of 1,000 SME operators from across the country showed a 9 per cent rise in satisfaction with the Government’s response to the COVID-19 alert level 4. 

The Government announced a rescue package on March 17 of $12.1 billion, which included $8.7 billion targeted at providing support for struggling employers.

A number of cashflow and tax measures designed to reduce pressure on local businesses were also introduced. The employer support scheme was later extended and the Business Finance Guarantee Scheme was also established.

Ingrid Cronin-Knight, MYOB NZ country manager, said SME operators have come to terms with the seriousness of COVID-19 and implications for the local economy.

“The government’s decisive handling of the situation and its recognition of the importance of maintaining cashflow in particular for SMEs has seen them win greater support from the sector,” Cronin-Knight said.

Nadine Hickman, director of Pep Talk Media, said the response from the Government was very good from an SME point of view.

“This all happened so fast, one week everything was normal, by the next our businesses, as we knew them, ceased to exist,” Hickman said. “That’s a pretty frightening thing to get your head around.”

Hickman said it certainly eased the pressure having the assistance offered so quickly and that it was very easy to apply.

“It eased those immediate fears to allow us time to catch our breath and pivot to a new direction and new strategy to go forward.”

The MYOB Business Monitor also revealed that over half, 54 per cent, of SME operators would like to see the business tax rate reduced to 25 per cent, almost a quarter, 22 per cent, would support making R&D tax credits more easily available to SMEs, and the same number would like to see greater investment in roads. A further 20 per cent would like to see increased investment in essential infrastructure.

Cronin-Knight said SME operators should start thinking about what their post-pandemic plan will look like.

“Any opportunities the Government can offer to not only help SMEs survive but to also take part in our national recovery programme – whether that’s through stimulus for R&D, or opportunities to bid on Government contracts for parts of major works programmes – will likely be well received by the sector.”

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