Insights into the health of small business

New Zealand | Reporting period: March 01, 2017 - March 31 2018 Published: May 14, 2018 Next publish: August 14, 2018

Cash flow

56.4%

of New Zealand small businesses were cash flow positive in March 2018

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of New Zealand small businesses were cash flow positive in March 2018
7.96p.p.
Month on month
1.30p.p.
Year on year

Cash flow

Percentage of New Zealand small businesses that are cash flow positive

In the past year, on average 50.2% percent of New Zealand small businesses were cash flow positive in any given month with March 2018 reaching the highest level at 56.5% percent.

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Getting paid

34.4

days on average for New Zealand small business invoices with 30-day terms to be paid in March 2018

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days on average for New Zealand small business invoices with 30-day terms to be paid in March 2018
-4.61%
Month on month
-10.70%
Year on year

Getting paid

Average number of days for a New Zealand small business invoice to be paid (30-day term)

The average delay for these payments throughout the year was 34.7 days, with March 2017 being the worst month for late payments.

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Hiring people

1.3%

change in the number of New Zealand small business employees from February 2018 to March 2018

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change in the number of New Zealand small business employees from February 2018 to March 2018
-0.62p.p.
Year on year

Hiring people

Percentage change in number of small business employees

February 2018 was the highest employment growth month at 2.85 percent while the worst month for employment growth was January 2018.

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Trading overseas

34.3%

change in the total dollar value of imports and exports for New Zealand small businesses from February 2018 to March 2018

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change in the total dollar value of imports and exports for New Zealand small businesses from February 2018 to March 2018
-7.66p.p.
Year on year

Trading overseas

Percentage movement in the total dollar value of imports vs exports

Both import spend and export invoicing saw the highest activity in March 2017, with a similar upward tick in March 2018.

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Cloud adoption

22.1%

growth in New Zealand subscribers on Xero in the year through 31 March 2018

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growth in New Zealand subscribers on Xero in the year through 31 March 2018

Cloud adoption

A breakdown of the top 5 industries adopting Xero

The professional scientific and technical services adopted Xero more than any other sector in the year through 31 March 2018.

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New Zealand | Reporting period: March 01, 2017 - March 31 2018 Published: May 14, 2018 Next publish: August 14, 2018

Read commentary

Supporting the New Zealand small business economy

by Craig Hudson

Xero Small Business Insights provides a monthly snapshot of New Zealand’s small business sector. Taking anonymised, aggregated data, it provides insights into five key areas of small business health: cash flow, getting paid, hiring people, trading overseas and cloud adoption.

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Economist Insight - Employment

by Cameron Bagrie

  • Economic insight

The economy is still humming going by readings from the Xero Small Business Insights employment gauge.

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Economist Insight - Cameron Bagrie

by Cameron Bagrie

  • Economic insight

Xero’s Small Business Insights series represents a big step forward in the availability and potential use of information to add value and provide intelligent customer insights on small business trends.

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Supporting the New Zealand small business economy

by Craig Hudson

  • Executive commentary

Xero Small Business Insights provides a monthly snapshot of New Zealand’s small business sector. Taking anonymised, aggregated data, it provides insights into five key areas of small business health: cash flow, getting paid, hiring people, trading overseas and cloud adoption.

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The small business impact on the rise and fall of employment rates

by Craig Hudson

  • Hiring people

Small but mighty is the mantra for our small business sector. In 2017, total employment by New Zealand’s small businesses accounted for 30 percent of the working population making them a key driver of job growth.

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Getting paid on time

by Craig Hudson

  • Getting paid

Getting paid on time can be a major challenge for small business. The resulting issues with cash flow can stifle growth, and even put entrepreneurs out of business.

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Driving exports for a thriving country

by Nicole Buisson

  • Trading overseas

Given our size, proximity to others, and abundance of natural resources; NZ trade has always been critical to our economic well being. As the world continues to become more connected, more and more Kiwi small businesses are embracing the opportunity to broaden the reach of their goods and services.

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Cash flow - the great variable for NZ small businesses

by Nicole Buisson

  • Cash flow

Ask any New Zealand small business owner what keeps them up at night and cash flow will likely be in the mix. Cash flow is a critical indicator of how a business is coping and the timely payment of accounts can make or break a small business.