New Zealand’s business sector appears to be transitioning from a focus on survival to a focus on growth, the latest Shaping Business Study has found.
Commissioned by 2degrees and conducted by the research company Perceptive, the study surveyed over 700 business decision-makers across New Zealand. Despite ongoing challenges, it found that the number of businesses classified as “thriving” has increased from 17% in 2023 to 18% this year. Business leaders are also feeling more optimistic about the future, with 34% saying they feel more positive compared to 32% last year.
Andrew Fairgray, chief business officer of 2degrees shares his comments on the findings. “In order for New Zealand’s business sector to reach its potential, we need to learn from the success of others over time, which is why we’re so proud to support and share this research. As we review the fifth year of Shaping Business, it is encouraging to see a growing number of businesses not just surviving but beginning to thrive.”
“We are seeing that businesses are feeling the rise of operational costs, but instead of sitting still, they are looking to move forward. The businesses managing to thrive are those that are finding innovative ways to increase productivity, rethinking cost savings, and investing in digital skills.” he added.
Although there’s a slight ease in inflationary pressures, the majority of businesses continue to suffer from elevated operational costs. 80% of respondents reported that their running expenses had risen over the past 12 months. This is a decrease from 87% in the previous year but remains significantly higher than the 53% reported in 2021.
48% of the surveyed decision-makers plan to conduct a price hike in the next year, while 72% of them seek cost-reducing strategies. According to 38% of participants, the most popular approach to cutting costs is to look for new suppliers.
The study also puts emphasis on the role of digital skills in business. Compared to 19% last year, 23% of business leaders considered the lack of digital skills as a barrier to growth. The main challenges for acquiring these skills include time and finding skilled technology professionals. 68% of businesses also reported that digital technology improves their productivity compared to businesses just getting by.
“Technology should boost what your business is already doing and improve the results it gets. It’s very easy to pile up lots of shiny tools, but in this environment, it’s never been more important to take a step back and make sure that they are delivering,” Fairgray said.
