Whanganui Employers' Chamber of Commerce chief executive Craig Hanford said the small businesses who had survived locally had been "smart" in adapting to conditions.
"They've chopped overheads, looked for ways to save money, looked for new opportunities, looked to online ... and the ones who are there are being very, very clever."
Small businesses didn't always make a huge amount of money, but they had successfully rejigged their business to survive the economy as it emerges from the recession.
The strongest local industries were in manufacturing. "They have been particularly smart in finding new markets, especially the ones who are exporting and working against that high dollar. They had everything stacked against them and still managed to pull through and succeed."
In terms of work in the pipeline (sales or projects booked for the next three months), 31 per cent of Wanganui-Manawatu businesses have more work booked for the quarter, while 20 per cent have less. And the region's business operators are more confident in improvements in the economy than the national average, with 37 per cent expecting the economy to improve in the next 12 months, compared to 35 per cent nationwide.
In terms of employment, 9 per cent of local SMEs plan to increase the number of full-time employees in the next 12 months, while 7 per cent will increase the number of part-time employees, and 13 per cent plan to increase the amount they pay in wages and salaries in the coming year.
The key pressures for the region's small and medium businesses are fuel prices and the high cost of internet access (ie high speed broadband). Wanganui-Manawatu is the only region where internet prices feature as a significant pressure.
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.
Mr Reed said the whole country was enjoying "solid levels" of economic growth.