SMEs in crisis of confidence

The economy is facing a crisis of confidence among New Zealand’s small-tomedium sized enterprises, according to the latest MYOB Business Monitor survey.

Small-to-medium sized enterprises (SME) expectations for the economy fell from an overall net positive 21 per cent in the March 2017 Monitor, to a net negative 14 per cent in the latest survey — its lowest level in three years.

Businesses in the primary sector were the most pessimistic about the coming year, with more than half of the operators in the industry (52 per cent) predicting the economy would decline.

Manufacturing and wholesale business operators were not a lot more optimistic, with 41 per cent expecting a decline. The number was lower for construction and trades business operators (38 per cent).

SME operators make up more than 500,000 businesses in New Zealand.

MYOB general manager Carolyn Luey said there was a wide range of considerations. “The level of uncertainty around the policies and direction of the new Government has been well canvassed in recent surveys. But other concerns, such as a looming international trade war, global instability and, closer to home, the range of new taxes being mooted by the tax working group — all of which were covered during the survey period — are likely to be factoring into how well business operators believe the New Zealand economy will perform.”

More than 1000 business operators around the country participated in the latest MYOB Business Monitor survey.

— staff reporter