Insights into the health of small business

New Zealand | Reporting period: February 01, 2019 - February 29, 2020 Published: April 16, 2020 UPDATE: XERO SMALL BUSINESS INSIGHTS IS PUBLISHING NEW DATA IN RESPONSE TO COVID-19. THESE NEW METRICS SUPERSEDE THIS HISTORICAL DATA, BUT WE ARE MAINTAINING IT FOR REFERENCE. TO SEE OUR LATEST INSIGHTS PLEASE REFER TO OUR MEDIA RELEASE. http://xero.com/content/dam/xero/pdf/media-release/revenue-and-employment-data-paints-cautious-picture-of-recovery-for-small-businesses-in-nz.pdf

Cash flow

50.2%

of New Zealand small businesses were cash flow positive in February 2020

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of New Zealand small businesses were cash flow positive in February 2020
11.02p.p.
Month on month
1.27p.p.
Year on year

Cash flow

Percentage of New Zealand small businesses that are cash flow positive

In the past year, on average 51.15% percent of New Zealand small businesses were cash flow positive in any given month with November 2019 reaching the highest level at 58.5% percent.

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Getting paid

7.6

days late on average across all New Zealand small business invoices paid in February 2020

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days late on average across all New Zealand small business invoices paid in February 2020
-22.27%
Month on month
-14.01%
Year on year

Getting paid

Average number of days late for a New Zealand small business invoice to be paid

The average delay for these payments throughout the year was 8.13 days, with January 2020 and March 2019 being the worst month for late payments across all payment periods.

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Hiring people

1.4%

change in the number of New Zealand small business employees from January 2020 to February 2020

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change in the number of New Zealand small business employees from January 2020 to February 2020
-0.71p.p.
Year on year

Hiring people

Percentage change in number of small business employees

February and October 2018 were the highest employment growth month at 2.9 percent while the worst month for employment growth was January 2019 and January 2020.

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Trading overseas

-17.7%

change in the total dollar value of imports and exports for New Zealand small businesses from January 2020 to February 2020

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change in the total dollar value of imports and exports for New Zealand small businesses from January 2020 to February 2020
-0.61p.p.
Year on year

Trading overseas

Percentage movement in the total dollar value of imports vs exports

Both import spend and export spend saw the highest positive activity in March 2019, with a considerable decrease in month on month percentage change in December 2018 which continued into January 2019.

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Cloud adoption

17.0%

growth in New Zealand subscribers on Xero in the year through 31 March 2019

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growth in New Zealand subscribers on Xero in the year through 31 March 2019

Cloud adoption

A breakdown of the top 5 industries adopting Xero

The rental hiring and real estate services adopted Xero more than any other sector in the year through 31 March 2019.

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New Zealand | Reporting period: February 01, 2019 - February 29, 2020 Published: April 16, 2020 UPDATE: XERO SMALL BUSINESS INSIGHTS IS PUBLISHING NEW DATA IN RESPONSE TO COVID-19. THESE NEW METRICS SUPERSEDE THIS HISTORICAL DATA, BUT WE ARE MAINTAINING IT FOR REFERENCE. TO SEE OUR LATEST INSIGHTS PLEASE REFER TO OUR MEDIA RELEASE. http://xero.com/content/dam/xero/pdf/media-release/revenue-and-employment-data-paints-cautious-picture-of-recovery-for-small-businesses-in-nz.pdf

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Economist Insight: September Payment Trends

  • Getting paid

Firms’ continue to pay the bills which shows that the economy is still performing well. Right now, economic growth – and various readings from hard data such as Xero Small Business Insights - continue to track above the more-timely sentiment surveys.

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Economist insight - 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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International trading - a move to multiple markets?

  • Trading overseas

Since our earliest days, New Zealand has been a trading nation. We do not - and cannot - produce everything that we want to consume and enjoy. International trade plays a key role in our economic growth and is a vital contributor to New Zealand’s well-being.

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

  • 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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Dip in small business hiring numbers not a cause for concern

  • Hiring people

New Zealand’s unemployment levels have reached their lowest in a decade – but the latest Xero Small Business Insights (XSBI) paint a slightly different picture. The crux of the issue is our skills shortage, which continues to make hiring tricky for both small and large businesses.

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Signs of improvement for trade after rocky quarter

  • Trading overseas

The latest Xero Small Business Insights reveal that after a difficult last quarter, overseas trading is starting to show a slow increase, with the total dollar value of imports rising 1.78% and exports 26.42%, from November to December 2018.

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New June data from Xero Small Business Insights paints cautious picture of recovery for small businesses in New Zealand

Our June 2020 Small Business Insights (SBI) show small business revenue in New Zealand has rebounded to 2019 levels while employment figures have dropped slightly after an earlier recovery in May. READ MORE

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Cash flow - the great variable for NZ small businesses

  • 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.

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Economist insight - June Employment

  • Economic insight

Xero’s Small Business Insights shows that employment growth is softening, though it’s from a gallop to a canter.

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Trading overseas - no spring surprises

  • Trading overseas

There won’t be many exporters sad to see the back of September, after New Zealand recorded its largest monthly trade deficit and was the second month in a row to show a significant monthly trade shortfall.

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Economy watch: improving payment times for Kiwi small businesses

Getting paid is critical for any business, but particularly so for small businesses who do not typically have big balance sheets they can lean on. In their case, cash flow really matters.

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Supporting the New Zealand small business economy

  • 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.