By BRIAN FALLOW economics editor
All but the largest firms in the National Bank's business confidence survey say regulation and paperwork are their biggest problem.
The National Bank has divided the 712 respondents to its survey into "micro" firms (up to 5 employees), small (6 to 10), medium (21 to 50) and
large (50 or more).
Among micro, small and medium firms, regulation was cited more than any other of the 14 responses offered to the question, "What is the most important problem facing your firm?"
A separate survey of the bank's small and medium-sized business clients found they spent an average of 9.5 hours a month on regulatory issues, including GST and other taxes, the Resource Management Act, occupational safety and health and the Employment Relations Act.
Larger firms employ people to handle these things, said National Bank chief economist Dr John McDermott.
"But in small firms it's the boss who has to do it, and 10 hours a month, for no benefit to the bottom line, is a significant burden."
Finding skilled labour is the main problem for large firms, and the second-ranked for small and medium firms.
The tax burden rated as the second biggest problem for micro firms, third for medium ones and sixth for large ones.
Perhaps surprisingly, competition was more often cited as a problem by large firms (second only to skill shortages) than by micro ones, among whom it ranked fifth.
Small and micro firms' expectations about their own activity over the coming year declined over the June quarter. But nearly a net 40 per cent of medium and large firms expected activity to increase.
