\u201cIt is slightly depressing as a journalist to constantly be talking about liquidations and companies going under,\u201d he says.<\/p>\n
\u201cThe wider impact of it is the families behind them. These are mainly family-run businesses with staff who also have their own families. There is a massive domino effect.\u201d<\/p>\n
Raynel says the reports he sees tell two stories.<\/p>\n
Some owners are cautious, see the problems building and get out early, with debts of less than $50,000.<\/p>\n
Others leave him asking how they let it go so long: sometimes owing millions, particularly to the IRD.<\/p>\n
In some cases this was down to Covid-era small business loans coming back to bite them, he says.<\/p>\n
The pressures are the same for almost everyone: fuel, freight and shipping, Raynel says.<\/p>\n
For owners who manufacture offshore and ship product here, freight costs have doubled, he says.<\/p>\n
Raynel says he always asks the business owners he interviews what advice they\u2019d give others.<\/p>\n
That advice has flipped from a growth focus to a defensive focus.<\/p>\n
\u201cA few years ago, it used to be a lot of, \u2018Just do it. Like, if someone\u2019s got an idea, absolutely go for it\u2019,\u201d he says.<\/p>\n
\u201cNow it\u2019s more check your market out, check your books out, make sure you\u2019re financially stable beforehand. It\u2019s interesting … I\u2019ve seen that shift in real time over the last few years.\u201d<\/p>\n
The businesses that can use New Zealand ingredients or New Zealand manufacturers are typically doing better, he says.<\/p>\n
\u201cThat cuts down a lot of the costs for them.\u201d<\/p>\n
\u201cBut those ones where they are relying on overseas [suppliers], there\u2019s no other way to do it other than pass the cost on.\u201d<\/p>\n
\u201cThey\u2019re the ones who are really struggling at the moment to sort of go, \u2018Okay, do I need to go into liquidation? Do I need to take on a loan?\u2019\u201d<\/p>\n
As we head into the election, the confidence of the small business sector becomes highly relevant, Dann says.<\/p>\n
According to the Ministry of Business, Innovation and Employment (MBIE), 97.2% of New Zealand enterprises are small businesses.<\/p>\n
On the podcast this week, the pair compare the small business policies of the two major parties.<\/p>\n
They also take a deep dive into the structural issues facing retailers \u2013 and in particular hospitality businesses.<\/p>\n
Listen to the full episode<\/a> for the complete conversation.<\/p>\n