Election uncertainty hurting business – survey

20 SEPTEMBER 2017

Election uncertainty hurting business – survey

Thirty-nine percent of SMEs say election uncertainty is having a negative impact on business

While the nation’s attention is taken up by the twists and turns of the 2017 election campaign, many local businesses will be wishing it was over.

The MYOB Business Monitor Snapshot survey of 400 small and medium enterprises reveals 39 percent say uncertainty around the outcome of the election is having a negative impact on business.

That compares to just over one-in-five (21 percent) that report at least some positive effect from the closely contested election.

MYOB General Manager Carolyn Luey says political uncertainty is never good for business. Investment decisions are postponed, hiring staff is put on hold and long-term decisions are delayed because owners are unsure what policies will be in place in the future.

“The close nature of the race is taking its toll. Businesses will be hoping for clarity from the election result next weekend,” says Carolyn Luey.

“It’s hard to say exactly what effect the election will have on the overall economy, but many local businesses are already counting the cost.”

Businesses most affected by the election are those in the primary sectors, with 50 percent reporting a negative impact, no doubt influenced by criticism of their environmental impacts and the possibility of new taxes.

The property and professional sector was close behind with 47 percent reporting a negative impact, likely coming from the possible introduction of capital gains and land taxes.

On the upside, however, more businesses in the manufacturing and wholesale industry see the election race as positive (38 percent) than negative (32 percent), possibly due to opportunities they see in a lower New Zealand dollar and proposals for more workforce training programmes.

“Ultimately, the cost of democracy is one that business owners are happy to carry – but they would prefer to do so in the knowledge that all of New Zealand’s political parties are prepared to listen to and address the issues facing the SME community,” says Ms Luey.

The MYOB survey found 83 percent of SMEs say issues facing their business or industry have not received enough attention this election campaign, while just 10 percent were happy with the level of engagement.

“New Zealand has approximately 500,000 small to medium enterprises, making up 97 percent of all businesses and 29 percent of our GDP. They are a very important sector and it’s important political parties focus on helping them to achieve success,” says Ms Luey.

The survey was conducted from 4 to 8 September and has a margin of error of +/- 4.9 percent.

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