Businesses tough it out

Fewer businesses reported increases in performance indicators in 2009 (such as total sales and profitability) than in 2008, Statistics New Zealand said today. In spite of recent economic events, many business activities were sustained, according to results from the 2009 Business Operations Survey, which covers businesses of six or more employees.

Requests for finance were also affected by conditions in 2009. While similar numbers of businesses requested finance, fewer businesses reported the money they sought was available on acceptable terms.
Rates of business innovation, often cited as an important driver of future growth, remained steady despite the economic downturn. Forty-six percent of businesses introduced new goods, services, processes, or methods, the same proportion as in 2007, the last time this information was collected. The proportion of businesses investing in research and development, expansion, or reporting sales from exports and tourism also remained similar to previous levels.

“Businesses have obviously had to weather tougher conditions, but appear to have been unwilling to make sacrifices in their key operations,” said Gary Dunnet, Statistics NZ’s business performance, energy, and agriculture manager.

This release presents a selection of statistics from the 2009 Business Operations Survey. A full set of tables containing all of the survey's results will be released on 30 April 2010. The Innovation in New Zealand: 2009 report will be released in June 2010.