SMEs crucial to economic rebuild

14 May 2020

A range of announcements in today’s Budget confirms the Government is backing SMEs to rebuild the economy in the face of global recession.

The Government will provide a more than $200 million boost to NZ Trade and Enterprise to expand the scope and intensity of support provided to firms.

In addition, a $10 million fund is being set up to provide incentives and grants to encourage e-commerce, train more digital advisors and provide information and support for SMEs wanting to incorporate e-commerce into their business models.

Budget 2020 also sets aside $80 million to encourage entrepreneurs and businesses to develop new products by enabling them to claim tax deductions for unsuccessful or abandoned assets.

BusinessNZ chief executive Kirk Hope says small to medium-sized businesses are the lifeblood of New Zealand’s economy.

“We are glad to see the Government provide further support to small businesses and encourage entrepreneurship.

“New Zealand might be small, but we have proven it can produce strong global companies and with the right support the next Xero, Pushpay or Rocket Lab can emerge.”

In addition, the Government has put aside $150 million for a fund to provide loans to R&D-intensive businesses, to complement the existing R&D Tax Incentive.

To help drive the economic recovery and build future resilience, the Government is investing $41.4 million across three years into initiatives in the construction, digital and agritech sectors.

“This Budget is the first step towards restoring businesses the confidence, driving the economic recovery and building future resilience, we look forward to seeing them implemented sustainably.”