Small business growth tracked the wider economy in the last quarter but the outlook has taken a hit, a National Bank survey has found.
The bank's Small Business Monitor, out yesterday, estimated the annual average growth rate for small businesses was 2.8 per cent in the year to September -equalling that of the wider economy.
However, the outlook among small and medium enterprises (SMEs) was at its lowest level since the monitor started in 1999.
A net 4 per cent of SMEs expect their activity to improve next year - compared to 29 per cent in March.
The bleak outlook was not exclusive to smaller-sized firms; those with more than 50 employees had a similar level of despondency about future business growth.
SMEs again cited the difficulty in finding skilled staff as their biggest concern - as it has been for eight quarters in a row.
The unemployment rate is at a 23-year low of 3.4 per cent.
This was followed by the burden of compliance costs. Interest rates, the higher exchange rate and strong market competition were also areas of increasing concern.
A net 21 per cent of SMEs surveyed said they expected credit to be more difficult to obtain during the next year. National Bank said this could be due to higher interest rates and the associated higher debt servicing required, as well as the increased debt firms had taken on over the past year.
