Business confidence on the rise

New Zealand confidence levels have increased, climbing 17 points in the Regus Business Confidence Index (from 103 to 120) since April 2012, with 66% of Kiwis happy with the current Government strategies supporting local business.

The latest Regus Business Confidence Index (BCI), based on views from more than 24,000 business leaders and managers across 92 countries, found that global business confidence overall has dipped over the past six months falling from 113 to 111 on the index. The results show that the NZ economy is ahead and far more confident than those in the UK (94 points), the US (107), Australia (116) and China (110). 

 

• The proportion of NZ companies reporting revenue increases rose, from 32% in April 2012 to 60%. 

• The number of companies in NZ reporting profit growth also grew, up to 44% from 28% in April 2012.

• The following issues were raised as potential challenges to small businesses and start-ups:

– Cash-flow (64%)

– Sales (47%)

– Cost of marketing and promotion (33%)

• Respondents highlighted key measures for Government to introduce that would substantially help small businesses and start-ups. These are:

– Tax exemptions (69%)

– Low interest loans (55%)

– Mentoring schemes (42%)

 

John Henderson, Asia Pacific CFO for Regus, said: “The New Zealand market has bucked the global trend, rising on the index and showing stability and positivity when it comes to business sentiment. Notably, there was a significant increase in the number of respondents recording increasing profitability and revenue turnover compared to this time six months ago.

“Access to affordable credit and cash-flow management were tagged by Kiwi businesses as key to growth, highlighting the need for flexible, pay-as-you go business services allowing businesses to remain agile. Regus have expanded our footprint to four locations across Auckland and Wellington, in part based on the demands from our customers for flexible workspace to facilitate their growth in New Zealand.”

“With two-thirds of New Zealanders saying they’re satisfied with the Government’s initiatives for businesses, there’s a strong link between business confidence and the current stable and positive market. Respondents also identified actions for Government to install to help support business growth for SMEs and start-ups, looking at options such as tax exemptions and low interest loans.”