New Zealand Small Firms Trail Region

New Zealand's small businesses have recorded the weakest growth performance among 11 Asia-Pacific markets for the second consecutive year, prompting calls for a long-term government strategy to support entrepreneurship. Professional accounting body CPA Australia issued the warning on 2 November, ahead of the country's general election on 7 November.

Its latest Asia-Pacific Small Business Survey found that just 38% of New Zealand firms reported growth in 2025, compared with a regional average of approximately 62%. Although the result improved slightly from 36% in 2024, the country remained at the bottom of the regional rankings. Only 7% of surveyed businesses increased their workforce last year, while just 5% planned to introduce new products, services or processes during 2026.

The findings also revealed an ageing business ownership population. Approximately 68% of New Zealand's small-business owners were aged 50 or older, while only 12% were younger than 40. CPA Australia argues that these trends demonstrate the need to encourage younger entrepreneurs, strengthen digital capabilities and address barriers to business investment and productivity.

Small businesses account for approximately 97% of New Zealand enterprises and employ more than a quarter of the workforce, making their performance important to the national economy. Weak growth can restrict hiring, investment and the introduction of new products. The survey suggests that improving conditions will require more than short-term financial assistance, particularly if the country hopes to close its productivity gap with other Asia-Pacific economies and encourage a new generation of business owners.