Business owners: You're not alone in navigating today's challenges
The latest Business Health Monitor reveals what many of us already feel — running a small business in New Zealand is tough right now. However, there are also some exciting results. Many of us are finding smart ways to work and grow, and mentoring rates right up there!
Regular research is conducted by Better For Business and carried out by MBIE. It surveys thousands of New Zealand businesses to understand real-world challenges. The findings help to shape policy and make it easier for small businesses to work with government.
In the latest report, one-to-one mentoring ranks, after tax breaks, as most needed type of support requested by business owners; 32% say they need this guidance. Business Mentors has over 30 years of serving New Zealand business owners. The model is effective and proven – matching you with experienced business leaders who understand your specific challenges because they've faced them too.
What the numbers tell us about small business reality
Running costs continue to squeeze profits; 69% of businesses reported increased operational expenses in the past year. For many small business owners, this means working longer hours while seeing lower returns. The retail and hospitality sectors have been hit hard, with some having to reduce staff hours or dip into reserves.
However, there's a silver lining. A quarter of businesses are finding ways to work smarter — streamlining their operations and cutting unnecessary expenses. Businesses with strong client relationships and loyal customers are better positioned to navigate tough times.
Nearly a third of businesses, 28%, are actively pursuing growth. They value the support of a Mentor more than their peers.
A positive finding is that fewer business owners are feeling stressed than in 2022. There has also been an increase in reported optimism and a decrease in reported frustration compared to the previous survey.
It's not surprising that those businesses that maintain profitability report better well-being outcomes; the link between financial and mental health is important. Both you and your business deserve the benefits of a Business Mentor's support.
Business owners and managers aged 35 to 54 are more likely to report frustration and stress, independent of industry or experience level. This age group is typically at the stage where they are managing both professional responsibilities and personal commitments, such as raising a family or paying off mortgage.
The Better For Business research also monitors how our sector is adapting to technological shifts. It found that only 18% of businesses are currently prioritising digital adoption. Those who do are finding ways to reduce administrative burden and improve customer service.
Keys to success
Businesses using support services like mentoring are better positioned to handle challenges. In particular, a Business Mentor can offer practical, experienced-based insights as you navigate regulation, increase efficiency and make strategic decisions.
The research shows that successful businesses are taking similar actions.
- Cut unnecessary costs without compromising quality.
- Maintain strong customer relationships.
- Get help before problems become critical.
- Look for efficiency gains in day-to-day operations.
The Business Health Monitor reminds us that as business owners, we're part of a larger community facing similar pressures together. Whether you're grappling with cash flow issues or planning your next phase of growth, having someone in your corner can make all the difference.
Business Mentors New Zealand provides up to 12 months of confidential mentoring for a nominal registration fee. Find out more here.
