Small business job cut intention grows

Small businesses are nearly three times as likely to be expect to lay-off workers than they were six months ago, a new survey shows.

The Veda Advantage small business economic impact survey of 322 businesses found 22 per cent of small and medium enterprises (SMEs) surveyed anticipated making redundancies in the next six months.

That was up from 8 per cent of those surveyed in August 2008. In terms of industry, retailers were the most pessimistic about employee numbers, with 33 per cent anticipating job cuts.

For 45 per cent of the enterprises surveyed, debtors were slower to settle accounts than a year ago.

Seventy-eight per cent had concerns about the effect the economy would have on them in the next year, compared with 65 per cent of those surveyed six months ago.

But the proportion believing economic conditions had a negative impact on their business was down slightly, to 63 per cent from 65 per cent of those surveyed six months ago.

Veda Advantage New Zealand director John Roberts said the survey findings suggested the global downturn had not yet had a heavy impact on the country's small business community.

But there was obviously apprehension about what 2009 had in store.

Businesses had made an effort to reduce their own debt levels, with 29 per cent owing less money than the same time last year.

Roberts said the findings mirrored what Veda had seen through its credit bureau, with the amount of delinquency in the commercial market on the up, while the appetite for credit has waned substantially.

- NZPA