Source: Radio New Zealand
Alongside the negative economic outlook is a growing sense of strain among business owners themselves. Unsplash/ Blake Wisz
New Zealand business owners are facing rising levels of stress after years of tough economic conditions, according to the latest State of Business Poll from Research New Zealand.
The April poll, which surveyed more than 400 business owners and senior managers, found nearly two‑thirds of respondents believe the current state of the economy is “bad” or “very bad”.
That figure has remained stubbornly high and is worse than comparable surveys conducted earlier last year.
Alongside the negative economic outlook is a growing sense of strain among business owners themselves.
All types of business owners, regardless of their industry category, business size, or region, are feeling stressed.
The poll found 83 percent of respondents reported experiencing some level of stress, with many saying they had struggled to feel hopeful or optimistic in recent weeks.
Research New Zealand managing partner Emanuel Kalafatelis said the survey showed a business community that has been under sustained pressure for an extended period.
“Most business owners are still very much in survival mode,” he said.
A record 42 percent of respondents said they had hardly ever felt hopeful or optimistic in the last two weeks, or not at all.
Only 22 percent said they had felt optimistic frequently over that period.
While the ongoing conflict in the Middle East was a concern for many firms, Kalafatelis said it was just one of many existing challenges rather than the sole cause of weak confidence.
Nearly three‑quarters of respondents said they were worried about the impact of the conflict on the broader economy, and about half believed it would directly affect their own business.
“While the domestic economy has continued to splutter in the interim, the conflict in the Middle East has put a further spanner in the works,” Kalafatelis said.
The survey also found significant caution about the year ahead.
Around a quarter of respondents expect sharp declines in revenue or profitability over the next 12 months, and nearly a third anticipate costs rising by 20 percent or more.
As a result, 52 percent of businesses said they were focused on just maintaining their current size, 16 percent were looking to downsize, and just 31 percent were planning any expansion or new investment.
Speaking after the release of the survey, Kalafatelis said the findings underscored the need for stronger government support for businesses under strain.
He told RNZ that targeted measures, including subsidies, could help firms cope with rising costs and prolonged uncertainty.
The survey of 433 business owners and managers was conducted online, between 24 March and 2 April 2026.
The maximum margin of error is +/- 5.8 percent (at the 95 percent confidence level).
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
