A survey of more than 700 business leaders reveals economic and political factors were the two main issues of concern, followed by business growth, workload and cash flow. Photo: Tom Taylor / RNZ
Businesses are increasingly turning their attention to growth after a difficult year of trying to stay afloat in a tough economy.
Accounting firm BDO's half-yearly Business Wellbeing Index showed business growth had become a top five concern for business leaders for the first time since the survey debuted in 2022.
Amid the global tariff turmoil, economic and political factors were the two main issues of concern, followed by business growth, workload and cash flow.
BDO advisory partner Kimberley Symon believed the emergence of growth as a key concern was a positive.
She said it was previously not a top five issue for firms as leaders focused on day-to-day as they tried to keep their organisations running, with businesses more worried about finances.
"Seeing business growth now as the concern means they are now looking ahead, looking as to how they can take their businesses forward."
Symon said businesses were "not completely out of the woods" but conditions had improved.
"However, for many business leaders, achieving business growth remains challenging in the current economic environment, with global trade dynamics highly uncertain, and their eyes will be on how the government might offer support in the upcoming Budget and future policies."
On the prospects of economic recovery, firms were concerned about global factors.
"But domestically ... inflation is largely under control, we've got the OCR (official cash rate) coming down, and I believe expected to fall further, which is all promoting that confidence," Symon said.
BDO said businesses would look to the Budget for potential support but were realistic about their chances.
"With Finance Minister Nicola Willis signalling in her pre-Budget speech that there will be 'no lolly scramble', it will be important for business leaders to maintain focus on the controllable elements in their business strategies - considering all aspects impacting their operating margins," Symon said.
The survey canvassed the views of more than 730 business leaders across the country.
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