New Zealand small businesses need technology injection in tough economy
Content Summary
- Small Business
- Technology

Jan McCallum
This article was current at the time of publication.
Business conditions for New Zealand small business owners declined in 2024, and just 47 per cent expect growth this year according to CPA Australia’s latest Asia-Pacific Small Business Survey.
Business owners cited a weak economic environment and rising costs as contributing to low confidence, but the survey also found owners were not adopting high-growth strategies.
Rising costs were identified as the biggest challenge to businesses across the region in 2024, and particularly in New Zealand.
How to grow your small business
Gavan Ord, CPA Australia Business Investment and International Policy Lead, says the survey identifies strategies for success even when SMEs are anticipating weak economic activity.
He notes that high-growth businesses across the region prosper because they are focused on innovating, adopting new technology, exporting and improving the customer experience.
High-growth businesses are more likely to seek advice from IT consultants and business advisers. Nearly all high-growth businesses in the 2024 survey sought advice, with younger business owners much more likely to tap specialist expertise.
“Australian and New Zealand small businesses were the most likely to not seek advice. This helps explain why they continue to underperform on key growth drivers, such as digital uptake and improving business strategy,” notes the survey report.
Right technology key to growth
Fast-growing small businesses are much better at investing in technology that delivers rapid profitability improvements. Only 22 per cent of New Zealand small businesses reported that their technology investments last year improved their profitability — the lowest result among the surveyed markets.
Liz Shimmin FCPA, CEO of Bluebird Accounting, says when owners want to discuss growing their business, she will look at the technology they are using and whether it will support their growth plans. When owners are struggling, she encourages them to communicate their needs and concerns.
“It can put a strain on our resources for the short term but once they get through this difficult period and see through to the other side, they see how we can support their business for the long term.”
Shimmin says she can often spot an issue quickly but when presenting options to the client she also discusses why they went into business, their values and what is giving them enjoyment from it.
Online sales
A common characteristic of high-growth businesses is that they are digital operations and are open to receiving payments through technologies such as PayPal, WeChat Pay and buy now, pay later platforms.
New Zealand business owners are generally older than their counterparts in the region, and less likely to use ecommerce, which presents opportunities because this segment continues to grow.
The NZ Post Annual eCommerce Review found all in-store spending dropped in 2024, except for health and beauty, while online transactions grew by 5 per cent. The review says half the adult population is now shopping online. While this presents more competition, the review notes that New Zealanders prefer to buy online from local businesses rather than overseas companies.
Engage online and build customer satisfaction
New Zealand SMEs nominated customer loyalty as the most positive influence on their business in 2024, yet they were the least likely to use social media to engage with customers.
High-growth businesses across the region use social media to attract customers, build loyalty, sell online and monitor competitors.
How SMEs can innovate
High-growth businesses are much more likely to introduce a new service, product or process this year. They are also much more focused on exporting, and the owners anticipating strong growth this financial year expect a strong increase in export sales.
About 16 per cent of New Zealand businesses expect their exports to grow this year, with another 6 per cent looking at strong growth.
Small business cost management
Rising costs are an issue across the region, but particularly so in New Zealand, where half the SMEs surveyed nominated rising costs as the biggest negative influence on their business in 2024.
The types of costs nominated varied across the region, but there was a strong increase in concerns about taxes, utilities, transport and storage costs.
4 ways advisers can help their SME clients grow
1. Have a conversation backed by data
Use the CPA Asia-Pacific Small Business Survey to start conversations about opportunities for the client, by pointing to the comparisons with other businesses in the region.
2. Discuss what clients are doing to innovate
High-growth businesses plan to introduce a new service, product or process this year. This may be a new payment method, or a product/service that responds to tighter consumer budgets.
3. Discuss technology investment
The survey was conducted in November and December 2024 and 76 per cent of high-growth SMEs said their 2024 technology investment had already improved their profitability. New Zealand SMEs were reporting a much lower ROI. Do clients need to talk to an IT consultant?
4. How is the SME working to improve customer satisfaction?
How are your clients engaging with customers on social media, whether through advertising or in online forums? Do they need to pay for some digital marketing expertise to identify the right online channel?
The CPA Australia Asia-Pacific Small Business Survey was conducted over November and December 2024. Of the 4236 respondents in 11 countries, 310 New Zealand SMEs responded to the survey, which is in its 16th year.
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