New Zealand SMEs have beaten the recession and are showing the highest growth in more than half a decade, according to the MYOB Business Monitor.
The monitor is a bi-annual survey of over 1000 SMEs, conducted by Colmar Brunton, which MYOB began in 2009.
The research shows that SME operators have drawn a line under the post-recession period. In June 2009, the number of businesses reporting an increase in revenue was just 22%, well below those reporting a drop in revenue (35%). 5 years later, in August 2014, the situation is reversed with those reporting revenue increase at 39% and those reporting a drop in revenue at 19%.
Drilling deeper in the data, the best performing sector is currently Finance and Insurance (see graph below), with 55% of SME operators reporting an increase in revenue in August 2014, compared to 32% in June 2009.
Other sector results are:
The Business, Professional and Property sector experienced steady growth from September 2011, when 28% of SME operators reported revenue was up, increasing to 38% in August 2014.
The Transport, Postal and Warehouse sector grew from 17% of SME operators recording revenue increases in October 2010, to peak at 36% in February 2014, before falling to 24% in the latest survey in August 2014.
In Retail and Hospitality, those SME operators reporting a drop in revenue outnumbered those reporting an increase in every survey until August 2014, when 43% reported revenue was up, and 23% reported revenue was down.
The Manufacturing and Wholesale sector is showing solid improvement over five years. The number of SME operators reporting revenue growth dipped to 22% in March 2010, and was followed by a steady rise to February 2014 (53%), before dropping back to 43% in August 2014.
In the Primary sector the performance has fluctuated, dipping in August 2013 when only 15% of SMEs reported revenue was up and 38% reported revenue was down. However, the trend reversed within a year, with the 43% of SME operators reporting revenue up in August 2014 and 13% reporting revenue had fallen.
Construction and Trades has seen steady growth over the five years with 16% reporting revenue increase in June 2009, rising to 35% in August 2014.