The latest research commissioned by Prospa has revealed some concerning statistics about the state of small and medium-sized enterprises (SMEs) in New Zealand. With SMEs making up 97 percent of all businesses in the country, it is alarming to learn that seven in ten of these businesses are feeling stressed and burnt out. This data sheds light on the ongoing uncertainty in New Zealand’s business climate, with business confidence on a downward trend despite earlier post-covid optimism.
The research conducted by RFI Global shows that business sentiment has decreased over the last 12 months, with less than half (48 percent) of SMEs feeling confident about their business’s future over the next year. However, there is a glimmer of hope as nearly half (49 percent) of SMEs are optimistic about the future of their business over the next 10 years. This mixed outlook reflects the current economic environment, with businesses anticipating eventual recovery despite the challenges they are currently facing.
Among the industries most affected by the economic downturn are retailers and hospitality businesses, with 85 percent and 75 percent respectively reporting feeling stressed and burnt out. A significant number of SMEs (35 percent) have had to work longer hours to navigate the recent challenges within New Zealand’s economy. The top concerns for SMEs include economic and regulatory factors, as well as business demand and cashflow issues.
The research also highlights the personal sacrifices that SME owners have had to make in response to economic challenges. Many have had to cut back on personal expenses, struggle to save for personal goals, and sacrifice leisure activities and time with family and friends. Prospa New Zealand Managing Director, Adrienne Begbie, acknowledges the toll that economic challenges can take on business owners‘ wellbeing and emphasizes the importance of seeking external support.
In response to the recent economic challenges, SMEs are considering various strategies to weather the storm, including increasing prices, using personal funds to cover business expenses, and seeking professional advice about business finances. Begbie encourages business owners to explore government grants and rebates, seek industry insights, and consult with financial advisors to navigate the current economic conditions.
Overall, the latest research paints a sobering picture of the challenges facing SMEs in New Zealand. While the statistics may be concerning, they also serve as a reminder of the resilience and determination of business owners in the face of adversity. By seeking support, exploring new strategies, and staying informed, SMEs can navigate the current economic climate and emerge stronger on the other side.