Small business owners say they are continuing to struggle with inflation and low consumer demand. Photo: RNZ / Rebekah Parsons-King
Small business owners are holding out little hope that the upcoming Budget 2023 will ease their financial woes.
A new survey of 527 small- and medium-sized (SMEs) business owners by accounting software firm MYOB showed a net 62 percent did not expect to see any benefits from next week's Budget.
MYOB's Jo Tozer said they do have a wishlist, however, with 44 percent of respondents wanting to see a reduction in the company tax rate to 25 percent, and another third of respondents wanting a permanent reduction to public transport and petrol prices.
"The call for a slight reduction in the company tax rate is a perennial feature on the Budget wishlist for local SMEs.
"However, in this high inflation environment it's also understandable that businesses are seeking some relief from rising costs."
Tozer said two-thirds of local small businesses have seen their expenses rise over the last six months, driven by higher wages and salaries, while profits decrease as customers cut their spending.
Businesses estimated they were paying an extra $400 a month for wages and salaries, though a quarter estimated they were paying $1000 more every month on wages.
Insurance, transport and shipping costs had also increased, Tozer said.
"Even well before the festive trading period last year, we've seen local SMEs struggling to strike a sustainable balance between managing higher costs and doing what they can to maintain their sales volumes, as consumers become increasingly cautious with their spending habits."
Many of the small businesses surveyed wanted to see wider community support in this years' Budget, Tozer said.
Healthcare, education, living standards and infrastructure topped the list of sectors small businesses wanted to see increased funding.
"Local SMEs are on the front line of a difficult economy, which is likely why we're seeing a strong level of pragmatic realism as we go into Budget 2023.
"Most recognise there's may not be a great deal in it for them and are therefore keen to see the government prioritise spending in areas like healthcare, infrastructure, and skills training - each of which the prime minister recently acknowledged as focus areas - which will contribute to the long-term growth and well-being of our country and our economy."
