Small business confidence and employment holding up

Small business confidence and hiring intentions are holding up despite ongoing uncertainty over the economic recovery and jobs, according to ANZ’s Business Micro Scope survey of small businesses.

Small firms’ hiring intentions increased slightly in the three months to 30 September, driven by ‘micro’ businesses with up to five staff. Firms in the manufacturing, construction and services sectors are leading the way with the most optimistic outlook.

While business sentiment remained relatively stable, the survey suggests that small businesses are finding the going harder than their larger counterparts. Low turnover continues to be the biggest challenge small businesses face, with many also citing increasing costs, economic uncertainty and a lack of skilled staff as significant issues.

“In a difficult trading environment, it’s encouraging to see that small business confidence has remained solid, and that some businesses are expecting to take on more staff,” says Fred Ohlsson, Managing Director ANZ Business Banking.

“In times like these it’s more important than ever that small firms get the expert support and advice they need to manage their businesses. The survey also highlights the value of a good business plan. It’s one of the keys to managing a business in uncertain times.”

“New Zealand’s 400,000-plus small businesses are the engine room of our economy.

This survey shows that, even in difficult times, our smallest firms can help drive employment,” says Mr Ohlsson. “We need to track what’s going on in this sector closely, and the Business Micro Scope helps us do this.”