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Home / Business / Small Business

Small firms lose confidence

NZPA
13 Apr, 2010 04:00 PMQuick Read

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Small and medium businesses have lost some confidence in an economic recovery since November, as more than a third of firms in a survey report falling revenues.

The Myob Business Monitor of small and medium firms, published yesterday, found 49 per cent of firms expected the economy to begin to
improve during the next year, down from 55 per cent in November.

Myob New Zealand general manager Julian Smith said business owners appeared to have adopted a more conservative view as more business owners faced falling revenues.

According to the April Myob monitor, 35 per cent of businesses reported a revenue decrease over the past 12 months, compared to 26 per cent of businesses with increased revenue. Of the businesses reporting a decrease, 47 per cent had seen revenue fall by between 20 and 39 per cent.

A fall in profitability was reported by 35 per cent of businesses, while 28 per cent had improved profitability.

Among small businesses 41 per cent were more likely to have seen profitability improve, while the worst industry over the period was construction and trades, with 49 per cent reporting a fall in profits, compared with 32 per cent in November.

- NZPA

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