Insights into the health of small business

New Zealand | Reporting period: June 01, 2017 - June 30, 2018 Published: August 14, 2018 Next publish: September 7, 2018

Cash flow

49.4%

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

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of New Zealand small businesses were cash flow positive in June 2018
6.59p.p.
Month on month
0.86p.p.
Year on year

Cash flow

Percentage of New Zealand small businesses that are cash flow positive

In the past year, on average 50.5% 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

8.3

days late on average across all New Zealand small business invoices paid in June 2018

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days late on average across all New Zealand small business invoices paid in June 2018
8.68%
Month on month
5.12%
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 9.3 days, with January 2018 being the worst month for late payments across all payment periods except 30 day invoices.

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Hiring people

-1.3%

change in the number of New Zealand small business employees from May 2018 to June 2018

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change in the number of New Zealand small business employees from May 2018 to June 2018
0.20p.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

-7.5%

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

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change in the total dollar value of imports and exports for New Zealand small businesses from May 2018 to June 2018
8.72p.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 activity in March 2018, with a considerable decrease in month on month percentage change in April 2018 which continued into May 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: June 01, 2017 - June 30, 2018 Published: August 14, 2018 Next publish: September 7, 2018

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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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Economist insight - employment

  • Economic insight

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

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Economist insight - trading overseas

  • Economic insight

Xero’s Small Business Insights provides key information on trends across businesses that are embracing the challenges and opportunities trading with the rest of world involves.

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Economist insight - cash flow

  • Categories
  • Economic insight
  • Cash flow

They say cash is sometimes king when investing. Well, cash flow is always king when it comes to any small business. Xero’s Small Business Insights shows that businesses tend to be cash flow positive around half the time.

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Economist insight - June overview

  • Economic insight

Is the Sword of Damocles hanging over the economy? No. There are areas to watch and economic cycles can sometimes turn on a dime but that’s always a risk. Xero’s Small Business Insights data challenges the notion that the economy is in a downturn.

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Cash flow - the ups and downs

  • Cash flow
  • Categories

In May we shared how small businesses experience a great degree of variability when it comes to their cash flow - fast-forward a few months and the latest data paints a similar picture. But who’s feeling the bumps and which industries have had a smoother journey over the last year?

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New Zealand small business hiring numbers soften slightly

  • Hiring people

Xero Small Business Insights shows that employment growth is softening, though it’s from a gallop to a canter. However, we need to be careful making sweeping judgements. Official HLFS employment figures show small businesses are still doing a lot of the employment growth heavy lifting.

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Updated payment metric provides deeper insight

  • Getting paid

Receiving payment for goods or services in a timely fashion is one of the big pitfalls for small businesses. It can also contribute to a ‘trickle-down effect’. Xero Small Business Insights shows that on average, invoices processed through the Xero platform in June were eight days late.

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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.

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Driving exports for a thriving country

  • 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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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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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.