NZ AHEAD OF THE GLOBAL CURVE FOR BUSINESS BUOYANCY
August 2012 - Latest survey from Entrepreneurs' Organization reveals positive outlook for New Zealand
The Entrepreneurs’ Organization (EO) has released the latest results from its Global Entrepreneur Indicator research project, a biannual survey of business owners from around the world. The survey focuses in part on performance-related metrics, such as jobs, profits and debt loads and partly on business climate, including access to capital and predictions on the economy.
New Zealand entrepreneurs are far more positive about the future than their overseas colleagues. They are seeing increased revenues and profitability going forward, and increased hiring of staff,’ says Tony Falkenstein, NZ EO member and founder of Just Water International Ltd.
‘I believe that New Zealand is outperforming other countries in the world due to the Euro problems, the Global Financial Crisis and the droughts in the USA. New Zealand entrepreneurs are seeing the “food need” being as good for New Zealand, as the mining boom has been for Australia.’
A snapshot of the survey findings includes:
Entrepreneurs are hiring at a much faster pace than they were a couple of years ago.
• 63% of NZ entrepreneurs predict an increase in the number of contract or part-time employees during the coming six months (compared to only 49% globally).
• 51% of NZ entrepreneurs reported net increases to their number of full-time employees during the six months preceding the survey.
• 57% of NZ business owners expect to increase their number of full-time employees in the coming six months.
NZ entrepreneurs are much more positive about the current business environment than entrepreneurs in other parts of the world.
• In the current survey, 46% of NZ business owners expect economic improvement (compared to 33% globally).
• Less than a quarter (14% in NZ and 23% globally) of entrepreneurs expect economic conditions to worsen in the coming six months.
• 94% of NZ respondents said that access to capital either improved or held steady during the previous six months, with nearly a third (28%) reporting that it became easier.
Though still trending upward, marked regional differences exist, with Europe/Middle East and South Asia decreasing the global average. NZ is performing ahead of the global curve with future predictions for growth looking strong.
• 89% of NZ business owners surveyed said they predicted a increase in the net profit over the next six months (compared to 76% globally).
• 68% of NZ entrepreneurs reported an increase in net profits in the six months prior to the June 2012 survey (compared to 68% globally).
• 70% of NZ business owners reported increasing revenues during the previous six months, and 78% expect increases in the coming six months.
Learn more about the EO Global Entrepreneur Indicator and read the full reports
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