Small businesses on the up

Takiwai Rotorua Maori Business Network president Lara Northcroft, front, said the increased revenue was "encouraging". Photo / Ben Fraser

Small businesses in the Bay of Plenty are tracking the most significant growth in the country, as national revenue growth hits its highest level in five years.

A Rotorua business leader says the IT sector could be helping boost the local economy.

The latest MYOB Business Monitor shows 45 per cent of small and medium enterprises in the Bay of Plenty increased their revenue in the 12 months to August - 6 per cent more than the national average. Growth is also expected to continue, with 37 per cent of local businesses forecast to increase their revenue in the next year.

Takiwai Rotorua Maori Business Network president Lara Northcroft said the increased revenue was "encouraging", and efforts to promote job creation were paying off.

"A lot of our businesses tend to be around the industries that bring a lot of income to Rotorua."

These included tourism, forestry and agriculture. "We've also got a lot of exciting things happening in the IT space, so a lot of our members are moving into that."

Ms Northcroft said she hadn't heard specific reports that small business owners were finding things easier but that wasn't to say they weren't doing well.

Nationally, 39 per cent of New Zealand's 460,000 small businesses increased their revenue in the year, compared with 30 per cent in the previous year.

MYOB chief executive Tim Reed said it was heartening to see small businesses in such good shape. "What's particularly positive is that growth is no longer confined to just the two largest centres, with the rebuild in Christchurch and the expansion of Auckland no more the only drivers of the economy," Mr Reed said.

The whole country was enjoying "solid levels" of economic growth. Christchurch still lead with 51 per cent growth in the 12-month period but regional New Zealand was not far behind - with Waikato and the Bay of Plenty experiencing higher growth than the national average. Only the Wellington region experienced subdued revenue.

The most significant improvements were in the retail and hospitality sector, followed by agriculture, forestry and fishing. Forecasts for the coming year predicted similar levels of growth, with 38 per cent anticipated to increase revenue and 43 per cent to maintain currently steady levels.

"Over the coming months, many business operators will be looking to consolidate gains, and invest more in their people, their systems and their operation, so they can enjoy these benefits for some time to come - no matter what the global economy may do over the years ahead," Mr Reed said.