Wairarapa firms doing well, says leader

The latest MYOB Business Monitor shows 28 per cent of small and medium enterprises in the Wellington region, including Wairarapa, increased their revenue in the 12 months to August.

Small businesses in the Wellington region have shown the only slump amid national revenue growth that's hit its highest level in five years.

However, a Wairarapa business leader says local enterprises are doing well.

The latest MYOB Business Monitor shows 28 per cent of small and medium enterprises in the Wellington region, including Wairarapa, increased their revenue in the 12 months to August - 11 per cent lower than the national average.

However, predictions expect this will be bumped up and a third of local businesses were expected to increase their revenue in the next year, with 13 per cent forecast to lose revenue.

Wairarapa Chamber of Commerce chief executive Stephanie Gundersen-Reid said small-to-medium businesses in the region seemed to be doing well.

"We are seeing an improvement and most businesses are positive about the future. However, most businesses we speak to are still being careful with their spending," she said.

"Some businesses are recruiting and this is always a positive sign."

Nationally, 39 per cent of New Zealand's 460,000 small businesses increased their revenue in the year, compared with 30 per cent in the previous year.

MYOB chief executive Tim Reed said it was heartening to see small businesses in such good shape.

"What's particularly positive is that growth is no longer confined to just the two largest centres, with the rebuild in Christchurch and the expansion of Auckland no more the only drivers of the economy," Mr Reed said.

The whole country was enjoying "solid levels" of economic growth.

Christchurch still led with 51 per cent growth, but regional New Zealand was not far behind - with Waikato and Bay of Plenty having higher growth than the national average.

Only the Wellington region experienced subdued revenue.

The most significant improvements were in the retail and hospitality sector, followed by agriculture, forestry and fishing. Forecasts for the coming year predicted similar levels of growth, with 38 per cent anticipated to increase revenue and 43 per cent to maintain steady levels.

"Over the coming months, many business operators will be looking to consolidate gains, and invest more in their people, their systems and their operation, so they can enjoy these benefits for some time to come no matter what the global economy may do over the years ahead," Mr Reid said. APNZ