By ELLEN READ
Small businesses' growth continued to outpace that of the wider economy in the three months to June 30, says the National Bank.
Economic activity in the small business sector expanded 1.4 per cent, taking year-on-year growth to 5.5 per cent.
In contrast, growth for the economy as a whole
was 0.2 per cent, taking the annual figure to 2.7 per cent, said the bank's September quarter Small Business Monitor.
The surging house market continued to be a pillar of support for small businesses, but strong performances were recorded across all sectors.
Chief economist John McDermott said manufacturing, construction, wholesale and retail sales, and the service sector, all recorded solid growth.
He said the small business sector was benefiting from the split nature and fortunes of the country's economy.
Growth remained strongest in the interest-rate sensitive and spending areas of the economy such as retail and housing, where small businesses abound, while growth in the currency-sensitive export sector, an area dominated by larger firms, was lagging.
For the sixth consecutive time, respondents to the bank's business survey said regulation was the biggest problem for small businesses. Compliance took time - something in short supply in small enterprises.
"Small-business owners typically work long hours and face numerous challenges, so it is not surprising that they rail against paperwork that benefits government but not their own business," McDermott said.
He noted that the Government seemed to be taking some notice of the grumbles, citing Budget money for a small business advisory group and moves to simplify tax for small businesses.
Confidence levels remained negative at minus 5.9 per cent for small businesses (six to 20 employees) and minus 21.6 for micro businesses (up to five workers).
