New Research Highlights Two Important Insights On The New Zealand Small Business Sector

1. Survey finds ‘emerging’ small businesses hardest hit by Covid

• A survey commissioned by Yellow New Zealand has found small businesses with a 2-5 year tenure have felt the impact of Covid the most keenly (74% of businesses with a 2-5 year tenure report a Covid impact, this is significantly higher than the average). They are found across all industries and regions of the country
• This makes up more than 100,000 business owners and represents the future backbone of the economy
• Darren Linton, CEO Yellow, says while the effects of the pandemic may recede over time, the technological and economic disruption is not going away anytime soon, and these young businesses need support now;

“As the dust settles, the impact of Covid-19 is becoming clearer, we know travel and hospitality sectors have been knocked sideways, but to now see young businesses heavily impacted across the board calls for concern. This is a vulnerable group who represent the future of our economy, we need to address ways to support them specifically.

“We are currently reaching out to a range of stakeholders so that we can identify and deliver on initiatives that may help.”

2. Research shows digital divide at almost 40 percent among small businesses

• 37 percent of small businesses still have no online presence
• Circumstances created by the pandemic make a strong case for businesses to adopt digital tools and evolve their business models to compete in a post-COVID future
• Darren Linton, CEO Yellows, says more support and education for businesses to do this has never been more important

“Almost 40% of the total small business marketplace have no online presence at all, no Google my Business listing, no website, Linked In, Facebook – anything.”

“Even though 70 percent believe those with an online presence are more likely to survive economic downturn.

“The reason most give for not being online is a lack of ‘relevancy’. Relevancy is a subjective thing, not every business is looking for new customer growth, but the existing customer experience can also be improved with a digital presence. That’s not always obvious.

“53% of all respondents said more support and education is required when it comes to getting online, which plays a part in relevancy too, every business is at a different stage in their journey.”

© Scoop Media