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\nAlongside the negative economic outlook is a growing sense of strain among business owners themselves.
\nPhoto: Unsplash\/ Blake Wisz\n<\/p>\n
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.<\/p>\n
The April poll, which surveyed more than 400 business owners and senior managers, found nearly two\u2011thirds of respondents believe the current state of the economy is “bad” or “very bad”.<\/p>\n
That figure has remained stubbornly high and is worse than comparable surveys conducted earlier last year.<\/p>\n
Alongside the negative economic outlook is a growing sense of strain among business owners themselves.<\/p>\n
All types of business owners, regardless of their industry category, business size, or region, are feeling stressed.<\/p>\n
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.<\/p>\n
Research New Zealand managing partner Emanuel Kalafatelis said the survey showed a business community that has been under sustained pressure for an extended period.<\/p>\n
“Most business owners are still very much in survival mode,” he said.<\/p>\n
A record 42 percent of respondents said they had hardly ever felt hopeful or optimistic in the last two weeks, or not at all.<\/p>\n
Only 22 percent said they had felt optimistic frequently over that period.<\/p>\n
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.<\/p>\n
Nearly three\u2011quarters 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.<\/p>\n
“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.<\/p>\n
The survey also found significant caution about the year ahead.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Speaking after the release of the survey, Kalafatelis said the findings underscored the need for stronger government support for businesses under strain.<\/p>\n
He told RNZ that targeted measures, including subsidies, could help firms cope with rising costs and prolonged uncertainty.<\/p>\n
The survey of 433 business owners and managers was conducted online, between 24 March and 2 April 2026. <\/p>\n
The maximum margin of error is +\/- 5.8 percent (at the 95 percent confidence level).<\/p>\n