New Zealand small business confidence is improving, but many owners are waiting for the election result before making major commitments.
Research commissioned by Prospa found:
- 24% are delaying major purchases, vehicles or equipment upgrades.
- 15% are holding off on expansion and hiring.
- 29% expect profit growth in the next year, up from 19% six months earlier.
- 45% have less than four months of cash reserves.
“Confidence is coming back but confidence and commitment are two different things. They’re not prepared to commit at the moment until the election is decided,” Prospa New Zealand Managing Director Adrienne Begbie said.
When asked what would have the greatest impact, 29% nominated a lower tax bill and 24% nominated lower ongoing costs, including fuel, power and insurance.
