Several data points paint an unfavourable picture for small businesses in the lead up to Christmas this year:Company liquidations are up 40% on the same period last year and online retailers currently have the highest rate of
business failure (Centrix);Just 57% of retailers are feeling confident or very confident that their retail business will survive the next 12 months
(RetailNZ);Small business sales figures have declined for the first time in two years (Xero); andJust under 70% of New Zealand businesses think the next 12 months are going to be tougher than the last 12 months
(MYOB).
A Buy NZ Made survey of small business has revealed 64% are struggling with rising costs and 30% are struggling with
cashflow and inflation. Less than half are optimistic about the Christmas period and a quarter say just staying afloat
will be their focus in 2024.
Buy NZ Made executive director Dane Ambler says small businesses are facing challenges far greater than those faced
during covid disruptions.
"We are seeing more companies on the edge, or the last of their kind in New Zealand. A lot of the small business support
we saw during covid has dropped off in the past year. Many are optimistic about what a new government will bring, but
bringing down inflation won’t happen overnight.
"Many small businesses rely on the Christmas trading period to survive and thrive. NZ Made Day is tomorrow [November 21]
and is a great opportunity to show some love to small Kiwi businesses and get them through this difficult time.
"Instead of sending your money overseas via big box retailers on Black Friday, why not make the choice to support local
brands in our communities this NZ Made Day?"
Shop NZ Made offers and giveaways using the hashtag #nzmadeday