Nearly six in 10 business owners plan to invest despite soft outlook
New Zealand's small and medium-sized businesses are entering spring with a subdued economic outlook but are still pushing ahead with sales and investment plans, according to a new MYOB survey of more than 500 SME operators nationwide.
Confidence remains soft, but businesses aren't standing still
Just a third (33%) of SME operators surveyed believe the economy will improve over the next 12 months, while 38% expect it to decline and a quarter (25%) expect no change. Views on their own business performance were slightly more upbeat: 34% expect revenue to rise over the coming year, 40% expect it to hold steady, and 26% anticipate a decline.
MYOB chief customer officer Dean Chadwick (pictured) said a mix of global and domestic factors is weighing on sentiment, with SMEs also facing rising overhead costs, softer customer demand, and cashflow pressures. Despite that, he said "there is reason to feel positive about how spring is shaping up," pointing to businesses that are choosing to act rather than wait for conditions to improve on their own.
More than half (54%) of operators are making changes to lift sales over coming months, including discounting, increased advertising, and expanding product or service ranges. A similar share (56%) plan to invest in refreshing their business, with staff training and development (25%) and software or technology upgrades (24%) the top priorities, followed by new equipment (16%), premises upgrades (13%), and sustainability improvements (11%).
Financial housekeeping overdue for many
Clearing out old inventory and tidying physical space (32%) topped the list of overdue "spring clean" tasks, ahead of updating processes and administration (23%) and digital tools (22%). Finance and accounting management wasn't far behind at 18%, with SME operators reporting they last completed a full financial reconciliation almost five months ago on average – roughly aligning with the end of the New Zealand tax year. Nearly one in 10 hadn't done so in over a year, and 7% couldn't recall the last time.
Chadwick said getting finances in order gives owners a clearer picture of their business heading into the busy summer trading period, helping them "be more resilient to any curveballs and invest with confidence."
A soft backdrop, but businesses pushing ahead regardless
The cautious sentiment MYOB found sits against a similarly soft economic outlook. NZIER's latest Consensus Forecasts point to a slow, fragile recovery, with inflation expected to stay above 3% in the near term and annual GDP growth forecast at just 1.7% for the year to March 2027. NZIER said "the recovery is expected to remain gradual and fragile, with households and businesses still cautious about spending and investment."
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