Prospa survey shows positive small business sentiment despite difficult year – NZ Entrepreneur Magazine

Small businesses in New Zealand are feeling optimistic about the future as we head into the Christmas holidays.

A new study commissioned by a specialist small business lender, professional spaindicating that business sentiment in this cohort is positive for the summer, with 73% of those surveyed feeling good about their overall business health and 63% expecting their business to grow over the next 12 months. said he was optimistic about the possibility of

In a survey of 514 businesses with 1 to 49 employees, 80% felt ready for the holiday season, and just under half (43%) said their business would be profitable in the next 12 months. is expected to increase.

Adrienne Begbie, Managing Director of Prospa, is pleased to see such positive outlook for New Zealand SMEs after a difficult few years.

“This is a very positive sign, as the year-end trading period is often critical for many small businesses. The demand for funds is often high in the run-up to Christmas. Because you have to pay for additional inventory and staffing, not just make up for the shortfall.

“Overall results show that companies feel positive about their financial health despite facing constraints from rising costs,” says Begbie.

The top concern identified by SMEs is rising overhead costs (31%), with rising transportation and delivery costs due to rising fuel prices (21%) and unpredictable and volatile revenues (20%). followed.

The results also show that business owners feel the current environment is favorable for growth, with 38% planning investments to grow their business within the next 12 months. Just under half (45%) say they are more likely to access external funding.

Small businesses have traditionally found it difficult to access funds through traditional banks, so in October, Prospa launched with the aim of helping small business customers throughout the year-end and New Year period. announced a year-end funding offer. rate.

“The survey results show a positive outlook after the general uncertainty we have experienced. ” seems to be regaining.

“Despite the challenging business environment, it is really encouraging to see New Zealand SMEs planning to invest in growing their businesses. is access to flexible funding,” adds Begbie.