Businesses optimistic

The results of MYOB’s Annual Business Monitor for 2024 show that Canterbury-based businesses are feeling more optimistic and expecting a stronger performance in the year ahead.

The nationwide survey of 1000+ SME business owners and leaders revealed that New Zealand SME confidence has improved markedly on this time last year.

More than a third (36%) of business owners and decision-makers in Canterbury believe that the New Zealand economy will improve over the next 12 months, while 28% expect it to stay the same and 36% expect it to decline. In comparison, nationally, 37% of SMEs believe the New Zealand economy will improve over the next 12 months, while 22% expect it to remain the same, and 40% believe it will decline.

When it comes to their business revenue, Canterbury businesses are tracking above the national average, with 29% reporting that their business revenue is up on this time last year, while 39% say it has remained the same, and 29% have seen a decline. Looking ahead, a higher proportion of SMEs in Canterbury (than other regions) expect improvements in revenue for the year ahead – 35% expect their revenue to be up in 12 months’ time, 46% expect it will stay the same, and 15% are expecting their revenue to have dropped.

However, other insights from the Business Monitor highlight that Canterbury businesses aren’t immune to the challenging market conditions affecting businesses across the country. While 44% say their profitability has remained the same over the past three months, only 16% have seen their profitability increase over the last three months, and 40% report a decrease in profitability

Canterbury SMEs surveyed are also marginally less positive (than the overall average) when describing their current cashflow levels – while 39% describe their cashflow as ‘good’ up to ‘very good’ (national: 43%), 46% describe it as ‘satisfactory’, and 14% as ‘poor’ or ‘very poor’ – the latter of which is encouragingly lower than the overall average (17% ‘poor’).