Last week we looked at the MYOB Business Monitor's report that New Zealand SMEs have beaten the recession and are showing the highest growth in more than half a decade. This week we look at another aspect of that same report.
The small business sector has performed remarkably well in the past 5 years, bouncing back from the Global Financial Crisis to record its highest growth since 2009. That’s according to the MYOB Business Monitor – a regular survey of over 1,000 New Zealand SMEs conducted by Colmar Brunton.
There are a number of macro-economic factors driving economic growth, including the Christchurch rebuild, the Auckland housing boom and record commodity prices. But that doesn’t tell the whole story about the turnaround. It can also be credited to many years of hard work, prudent management and intense commitment on the part of small business owners.
So how have SMEs performed in New Zealand’s 3 major cities compared to the rest of the New Zealand? Data from the MYOB Business Monitor has provided the following analysis of regional performance over the past 5 years.
Auckland SME operators have shown impressive growth since June 2009 when only 17% reported revenue had increased in the past 12 months. Following a dip in March 2011, small businesses in Auckland have achieved greater gains, and in August 2014 38% recorded revenue was up in August 2014.
In Wellington, SME operators have shown stable progress, lifting performance from June 2009, when just 19% reported a revenue increase. In August 2014, 28% of SME operators reported revenue was up.
The effects of the Canterbury rebuild are evident with an impressive 51% of SME operators in Christchurch reporting revenue was up in August 2014. This is compared to 5 years ago when 29% reported revenue was up, and 28% reported revenue was down. (Note: Survey not taken in Christchurch in March 2011).
SMEs in regional New Zealand have achieved steady gains over the past five years. In June 2009, 25% of SME reported a revenue rise, compared to 30% who reported that revenue was down. Five years later the situation is reversed, with 39% reporting revenue was up in August 2014, and 16% reporting revenue was down.