Three things would help the next Government answer it.
Make a long-term plan, seek support across parties
Nearly every business in our economy is a small business, yet too often small businesses sit at the edge of most Government growth plans. New Zealand needs a comprehensive strategy to lift small business performance as a core pillar of its growth and productivity agenda. It should set a 10-year direction, with a few measures published every year so owners can see whether it is actually working.
We have put the same case to the Australian Government: lifting productivity needs long-term policy commitment and support across parties. We have also proposed an annual Small Business Simplicity Index there, to track how easy it is for small businesses to meet their tax obligations. There is a case for considering something similar in New Zealand.
Aim digital support at results
Only 26% of New Zealand small businesses say technology investment improved their profitability, the lowest result in the region. Last year they invested most heavily in computer equipment. Across the region, the leading investment was artificial intelligence (AI).
Our 2026 Business Technology Report, a survey of accounting and finance professionals in six markets, found 88% of Australian and New Zealand businesses use AI but only 11% have embedded it deeply. Those with broader integration were more likely to report higher profitability.
The challenge, then, is not simply getting businesses to invest in more technology. It is helping them use it well. AI in particular needs to become part of how a business operates, and that is where owners need practical support.
The message to owners matters too. Small businesses have a productivity problem, not a motivation problem. Owners are willing to invest and adapt. Singapore has shown what bundled, sequenced digital support can achieve. New Zealand should do the same, with practical, well-funded support that encourages owners to keep investing.
Bring in the next generation of owners
Sixty-eight per cent of New Zealand’s small business owners are aged 50 or over, the oldest profile in the region, against a regional average of 30%. Only 12% are under 40. Among owners under 40, 71% reported growth last year, compared with 25% of owners over 60.
Over the next decade, who owns our small businesses could matter as much as any single policy setting. Our report suggests a First Business Owners programme, connecting aspiring owners with accredited advisers, mentoring and access to finance. Older owners who want to adapt their businesses or hand them over need support as well.
One principle runs through all three areas: policy has to be simple enough for small businesses to use. CPA Australia’s submissions to Inland Revenue on GST, fringe benefit tax and shareholder loans have each raised concerns about compliance costs for small businesses.
Stronger small businesses mean a stronger tax base, more jobs and a more resilient economy. But closing the gap with our regional peers will take more than a collection of policies announced one election at a time.
Whoever forms the next Government has the opportunity to set out a 10-year plan for small business and publish the measures that show whether it is working.
Rick Jones is Regional Head for accounting body CPA Australia
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