NZ Entrepreneurs confident in the face of OCR increase

NZ Entrepreneurs confident in the face of OCR increase

New Zealand’s Official Cash Rate increased this morning from 2.5 to 2.75 per cent, sending many new home buyers into despair. For New Zealand entrepreneurs though, the outlook is much different.

Tony Falkenstein, Communications Chair for the Entrepreneurs’ Organisation of NZ (and Director of Just Water International) says many NZ businesses are in a good position financially to face the increase.

“EO represents a range of entrepreneurs – SMEs from IT to Rubbish companies, Caterers to Vineyards – so we have a broad perspective on how economic issues affect the NZ business climate,” says Falkenstein

“Many business have already taken the opportunity to reduce or eliminate their debt over the Global Financial Crisis, so this increase in the OCR will largely have minimal to no effect on their operations. The vast majority of the businesses and business sectors we represent are now in a far more efficient place to face any increases in interest rates associated with this change.”

New Zealand is a country built on small business; of the 146,230 employing enterprises in NZ, 133,020 (91 per cent) have fewer than 20 employees. The way NZ business owners think and operate has a big effect on the country’s economy; so when NZ SMEs are positive that’s good for the country, Falkenstein says.

ENDS

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