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Small businesses reveal their biggest concerns

A new study by online payments provider, Pin Payments looks at the biggest concerns for small businesses in New Zealand and Australia.

The survey, which had over 700 participants who are business owners or employed at a managerial or executive level within an SME, reveal that the cost of living and late payments are taking the lead as the core concerns for small businesses.

For Kiwi small businesses, their biggest concerns were late payments, with one in two businesses reporting this as a major challenge.

Economic instability from inflation and rising costs was a major pain point for 75% of businesses in New Zealand and 76% in Australia. Customer spending has dropped for over 60% of respondents in both countries.

“This has been a growing area of concern for small businesses for years. Post-pandemic businesses haven’t had a break, with rising costs crippling opportunities for growth and leading to missed opportunities that impact revenue and, ultimately, business survival,” says CEO of Pin Payments Chris Dahl.

Read more: Kiwi SMEs urged to simplify customer journey

Fifty percent of New Zealand small businesses say they have no intention of growing or expanding, a stark difference to Australian businesses which are more optimistic about their growth prospects.

“It’s clear to see from these survey results, that New Zealand small businesses have been hit harder than Australia by recent global economic instability. Yet, New Zealand is a nation made up of small businesses, with over 5 million SMBs, making their survival vital to the country’s vibrant culture and GDP,” says Dahl.

This is also impacting hiring for these small businesses, with Australian businesses being 27% more likely to hire in 2024 than New Zealand.

Other kay takeaways from the survey include 50% of businesses are concerned by fraud, 78% are not interested in using AI and 18% were affected by a natural disaster.

“There’s a lot of uncertainty for small businesses in both countries right now which leads to a halt in innovation and growth,” Dahl says. “Our nations share a union and often work side by side, with an overlap in businesses and staff. Therefore, the survival and support of the startup and SMB ecosystems in both countries is vital.”

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