Almost all (95%) respondents enjoy being a small business owner in New Zealand
Research shows 65% of small business owners feel more connected to and supported by their local community now than
before COVID-19
Six in ten (58%) small business owners agree that their business is more resilient and sustainable today than before
COVID-19
More than half (55%) of small business owners have plans to invest in their business in the next six to 12-months
A new study has given insight into the impact the COVID-19 pandemic has had on the small business sector in New Zealand
and sheds light on the optimism felt by many Kiwi small business owners.
The research, commissioned by small business lending specialist, Prospa, and conducted by YouGov, found the majority
(95%) of survey respondents enjoy being a small business owner in New Zealand. The most popular reasons include being
their own boss (73%), a flexible schedule (66%) and pursuing their passion (47%). Creating jobs for others was also
cited by 17% of respondents.
Further to this, eight in ten (83%) agree that New Zealand is a great place to be a small business owner, and despite a
challenging period, would still recommend starting a small business to others.
Despite the obvious disruptions caused by the arrival of COVID-19, 65% of small business owners are also feeling more
connected to and supported by their local community and customers now than before the pandemic.
A sense of community seems to be strengthening amongst small business owners too, with almost half (45%) of respondents
having either sought or provided support, advice, or best practice tips on managing the impacts of COVID-19 from, or to
other small businesses in their community.
Beyond this, the survey reveals that over half of small business owners are feeling positive about the future. Six in
ten (58%) describe their business as being more resilient and sustainable today than before COVID-19, compared with only
a third (34%) who disagree.
While there is still a lingering concern about the ongoing impacts of COVID-19, more than a quarter (26%) actually
believe that getting through the height of the pandemic has made them more ambitious and motivated to grow their small
business. Younger businesses that have been running for five years or less are more than twice as likely to report
feeling this way, when compared to those whose business has been running for more than 20 years (40% vs 17%).
More than half (55%) of respondents have plans to invest in their small businesses within the next six to 12-months.
Small business owners under 50 are more likely than those over 50 to say they have plans to invest within this timeframe
(75% vs 42%). Common investments include new products and services (49%), marketing and sales channels (37%) and
renovations and upgrades (30%). Three in ten (30%) also have plans to hire new staff.
Prospa Managing Director, New Zealand, Adrienne Begbie said:
“The findings highlight the shared experiences of small business owners as they’ve navigated and adapted through the
challenges of the pandemic. It’s great to hear about the help and advice they’ve offered and received from fellow
business owners and the support they’ve been feeling from the community.
“Small business owners made many sacrifices over the last year, so it’s encouraging to see them look positively to the
future. With many intending to invest into their business within the next year, it demonstrates how resilient the sector
really is and why small businesses are the backbone of the New Zealand economy. They’re critical to our collective
recovery and we must continue to support local as we did during the height of the pandemic, to ensure these businesses
are around for years to come,” concludes Begbie.About Prospa
Prospa is a financial technology company and a leading provider of cash flow products and services that help small
businesses to grow and prosper. The company operates across Australia and New Zealand and employs over 200 people.Prospa
has a Net Promoter Score over 77 and is ranked #1 in the Non-bank Financial Services category in New Zealand on
TrustPilot.About the Research
This study was conducted online by YouGov between 19th April – 3rd May 2021 amongst a sample of 203 small business
owners in New Zealand with 1 to 50 employees.