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Nearly half of sole traders are struggling to cope with the cost of recent natural disasters, inflation, economic conditions and the pandemic hangover.
The latest Sole Trader Pulse survey conducted by Fintech service provider Hnry, which specialises in accountancy services for sole traders, indicated 43 percent of the self-employed sector were finding it difficult to deal with unplanned business expenses.
It also found 39 percent were affected by the Auckland floods and Cyclone Gabrielle disasters, while another third needed financial assistance to survive the economic downturn.
Despite the difficulties facing the sole trading sector, which accounted for about 400,000 of small businesses, most operators (93 percent) preferred to work for themselves.
"It's fantastic to see Kiwi resilience coming through with Hnry's sole traders, who want to ride out the challenging times we're navigating so they can keep doing what they're passionate about," Hnry chief strategy officer Karan Anand said.
However, he said some were missing out on available tax relief.
He said the survey found less than half claim all the business expenses they were entitled to, forgoing claiming up to $5611 in expenses per year.
Sole traders also reported spending an average of around six hours a week and $246 per month to do all their financial administration, while those using Hnry spend 1.7 hours per week and $109 per month.
"Doing basic things - like claiming all the right business expenses - could provide a buffer to help tackle unexpected expenses," Anand said.
"Freeing up hours spent on financial admin each week gives you valuable time to invest back into your business, yourself or your family."
The Sole Trader Pulse was conducted between 14 and 21 March 2023 and has a maximum error margin of +/-4.4%.
