Many small businesses plan to buy new asset as result of Investment Boost
Photo:
123RF
Many small businesses plan to invest in new assets as a result of the government's
Investment Boost programme
.
A MYOB survey of more than 500 small and medium sized businesses (SMEs) indicates nearly half (45 percent) plan to make an asset purchase over the next six months, while one-in-five were planning to invest in the next three months.
Topping the list of new assets to purchase were passenger vehicles, including cars, vans, and utes (31 percent), followed by new office technology (28 percent), digital devices (22 percent), furniture (18 percent) and tools of their trade (15 percent).
Just over one-in-10 planned to invest in smaller scale machinery or equipment.
About a third (35 percent) of businesses estimated their investments would improve productivity.
The survey found the other half of businesses considered changing their plans around investing in new assets because of the new policy, while about one-in-10 (12 percent) thought the Investment Boost had changed their plans considerably, though 7 percent were unsure.
Just 28 percent said their spending plans had not changed, with 5 percent saying their planned spending was ineligible for the government's programme.
MYOB chief customer officer Dean Chadwick said the survey findings demonstrated a strong appetite for government support, given the sluggish pace of economic recovery.
"The Investment Boost delivers timely support to New Zealand's SMEs as they weigh up current economic challenges with the opportunity to invest in growing their business, and it will go some way to shoring up and accelerating their own performance," he said.
"This latest survey also shows that spending by local businesses on eligible new assets will continue into 2026."
The median planned asset spend of those surveyed was $37,700.
One-in-10 businesses expected to spend between $80,000 to $100,000, while 12 percent expected to spend between $100,000 to $200,000.
The agriculture sector has one of the highest median spends ($56,670), along with manufacturing ($53,300), behind the finance and insurance sector ($60,000 median).
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