Latest / Best of Business / Chris Small: ABC Business Sales Managing Director on the number of businesses reporting losses

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Chris Small: ABC Business Sales Managing Director on the number of businesses reporting losses · Best of Business

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  Speaker 1: You're listening to a podcast from news Talk zed B.
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  Speaker 2: More insight into the economy you darted from ird shows
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  Speaker 2: twenty percent of businesses operating at a loss. This is
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  Speaker 2: in twenty twenty three, one hundred and seven thousand of
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  Speaker 2: them out of the four hundred and seventy five thousand
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  Speaker 2: companies we have by last year, similar to tread another
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  Speaker 2: one hundred and seven thousand companies still reporting losses, more
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  Speaker 2: than forty percent of those businesses, by the way, in
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  Speaker 2: accommodation and food. Chris Small, CEO at ABC Business Sales,
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  Speaker 2: is back. Well this Chris, very good morning to you.
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  Speaker 3: Okay, right, key, doing very well.
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  Speaker 2: Indeed, how many businesses run at a loss, will always
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  Speaker 2: run at a loss, are a bit useless and that's
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  Speaker 2: just life.
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  Speaker 3: Yeah, great point. So within those numbers is actually a
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  Speaker 3: high proportion they actually have no staff, and they actually
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  Speaker 3: include things like trusts and property owning companies. So i'd
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  Speaker 3: say rejected to what there's a fair proportion as you
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  Speaker 3: look at previous years ninety nine thousand that I've actually
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  Speaker 3: structured in a certain way which will always for text
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  Speaker 3: efficiency reasons show a loss. So I think you spot.
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  Speaker 2: On there variation and sectors. I mean I highlighted accommodation
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  Speaker 2: and food. Will some always struggle because of the number
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  Speaker 2: of people in that sector.
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  Speaker 3: Not necessarily, I mean it's at the moment you exactly right, Retail, accommodation,
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  Speaker 3: and hospitality, which all have a reliant on customer demand
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  Speaker 3: or consistion of spending. As we all know, we're in
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  Speaker 3: a cost of living cristis, so consumers are spending less.
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  Speaker 3: So in particular, those those are the sectors that getting
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  Speaker 3: hit the hardest. But no, there's no reason why those
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  Speaker 3: sectors can't make money. Well, I would say is certain
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  Speaker 3: sectors have tax efficiency structures, so when they come and
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  Speaker 3: see us, for example, it's often that certain sectors are
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  Speaker 3: showing a loss from a tax perspective, but when you
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  Speaker 3: beck out certain private costs or other costs that are
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  Speaker 3: in there, they actually are showing a profit. So there's
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  Speaker 3: a few complexities within.
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  Speaker 2: Those those losing money. How does that dovetail into sales
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  Speaker 2: and demand for sales of businesses?
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  Speaker 3: Yeah, good question. So I did a bit of analysis
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  Speaker 3: before before I came on. So at the moment, still
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  Speaker 3: ninety percent of people who are coming to see us
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  Speaker 3: and making a profit. So it's approximately one in ten
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  Speaker 3: for showing a paper loss. It's the sort of ratio
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  Speaker 3: we're seeing it the right which which is a good sign.
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  Speaker 3: So we've still got what we're seeing. Ninety percent of
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  Speaker 3: small to medium sized enterprises in New Zealand are still
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  Speaker 3: making a profit when they come and see us and
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  Speaker 3: want to put their business on the market.
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  Speaker 2: Good, good, on time. As always, Chris appreciated ABC Business
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  Speaker 2: Sales Boss.
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