SME growth coming off record highs

SME growth coming off record highs

Growth among New Zealand’s small businesses has levelled off in the last six months with the economy entering a more stable phase, according to a nationwide survey of small business operators.

Thirty-two per cent of SMEs saw revenue increase in the 12 months to February – down from a five-year high of 39 per cent in September – according to the latest MYOB Business Monitor. More SME operators are reporting stable revenue, however, up from 38 per cent to 44 per cent in the latest survey of over 1,000 business owners and operators from around the country, conducted by Colmar Brunton.

The twin effects of falling commodity prices and drought conditions through a large part of the country are weighing on local farmers, with a larger proportion of SME operators in the primary sector seeing revenue fall (31 per cent) than gain (26 per cent). Manufacturing is also slowing, with 28 per cent of local operators showing an improved revenue performance in the year to February, compared to 43 per cent in September. More goods are moving, though, with the logistics sector reporting a large jump from 24 per cent reporting an annual revenue increase last year, to 33% in the latest survey. The construction sector has also maintained its level of growth, at 35 per cent.

Throughout the regions, growth has also settled back from the highs achieved last year. Areas like Northland, however, are reporting high levels of stability – with 70 per cent of business operators in the region saying their revenue performance is the same as last year.

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