Infographic: Overcoming small business challenges

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RFi Research
25 August 2023 | 1 min read

Confidence is on the rise among small business owners in New Zealand, but while some concerns are dwindling, others are being felt acutely. Here are the biggest challenges businesses are facing right now, and how small business owners are responding.

Many small business owners in New Zealand are feeling positive about the future, with confidence at its highest level since before the pandemic.

When asked if they were confident about the future of their business over the next 12 months, 53% of small business owners said yes – the highest figure since the 57% recorded in November 2019.*

Confidence slumped in mid-year 2020, when 36% of small business owners said they were feeling positive about the next 12 months, and again in November 2021, but has risen steadily since.

When asked if they were confident about their business over the next 10 years, 51% of respondents also responded in the affirmative.

But reactions were dependent on the size of business and the industry, with larger businesses more optimistic about the next 12 months. Companies in consumer services were also the most confident about the year ahead, with transport-dependent services the least confident.

Some concerns were declining among small business owners, including attracting and retaining good staff, financing growth, time and resource management and the impacts of COVID-19. But some challenges were also being felt more acutely, such as rising interest rates, reduced business demand and weak cash flow.

Looking forward, small business owners say the challenges they expect to worsen over the coming year include labour costs, navigating the increasing cash rate, managing supply chain disruptions and maintaining cash flow.

Here are the biggest challenges businesses are facing right now, and 3 tips from small business owners and an expert.

Solving small business challenges

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