Small businesses poised to play a key role in the country’s economic recovery

Data released today by ANZ Bank New Zealand shows a wave of new small businesses being well-positioned to drive growth in the local economy.

An impressive 62,000 small businesses started up between March and September 2021, twice as many as in the same period in 2016 and 2018.

More than 92 percent are still operating two years later, according to an analysis for New Zealand’s largest bank by data insights company DOT Loves Data.

This compares to 90 percent of those started in 2018, and 86 percent of those registered in 2016, over the same two-year timeframe.

“The first two years are critical for all new businesses, and we’re delighted to see so many reach this important milestone,” says ANZ’s Managing Director of Business Banking Lorraine Mapu.

“It takes a lot of courage and resourcefulness to start a business, and the past few years have been particularly challenging.

“Small businesses really are the backbone of our economy and will play an important role in our economic recovery.

“When they do well, the whole country benefits, so it’s crucial they get the support they need.”

According to data from Stats NZ, there are approximately 546,000 small businesses in New Zealand representing 97 percent of all firms. They account for 29.3 percent of employment and contribute over a quarter of New Zealand’s gross domestic product.

According to the data, the Auckland region was the most active in terms of new small business registrations, recording 44 percent of the national total during the post-lockdown period.

There has been a brighter picture too in the regions where more than 92 percent of new businesses registered in the 2021 period in Gisborne, Manawatū-Whanganui, Marlborough, Otago, Southland, Taranaki and Tasman were still operating after two years.

“The regions are a standout,” says Mapu. “They underscore the strength and importance of new businesses for our regional economies.”

Mapu say the people behind the wave of post-Covid start-ups show how resourceful and innovative Kiwi business owners are.