A recent survey conducted by online payments company Pin Payments has revealed the primary challenges facing small and medium-sized enterprises (SMEs) in New Zealand, with late payments being the most significant concern.
The survey collected responses from over 700 participants, who are a mix of business owners and professionals holding managerial or executive positions within SMEs across New Zealand and Australia. The findings provide valuable insights into the primary issues facing small and medium-sized enterprises within the two countries.
Late payments were at the top of the list for Kiwi businesses, with half of the respondents citing it as a major challenge. Australia also struggles with late payments, with one in three Aussie SMEs claiming it is a significant issue.
Meanwhile, cybercrime topped the list of concerns for Australian businesses, with 72% expressing fears about business fraud and 43% identifying it as their biggest worry. Despite these concerns, only 36% reported using two-factor authentication as a security measure, which indicates a significant lack of fraud prevention among SMEs in Australia.
Economic stability was, unsurprisingly, a significant pain point for businesses in both countries. 76% of respondents in Australia and 75% in New Zealand reported that their businesses have experienced the effects of inflation or rising costs, with a decrease in customer spending of over 60% in both countries. Other reasons included high borrowing costs and a lack of resources to expand.
Moreover, 50% of the New Zealand respondents stated they had no plans for growth or expansion. This was highly in contrast to Australia, where 1 in 2 respondents reported plans to scale.
Chris Dahl, chief executive officer of Pin Payments, commented on these findings, saying, “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 {small and medium businesses} SMBs, making their survival vital to the country’s vibrant culture and GDP.”
“There’s a lot of uncertainty for small businesses in both countries right now, which leads to a halt in innovation and growth. 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 start-up and SMB ecosystems in both countries is vital,” he added.