A buoyant economy - or one still in trouble?

Jul 31, 2012

We find ourselves constantly asked for our view on the state of the economy. It's certainly not because of any classical training as an economist. Or perhaps it is because we have not trained as an economist. Perhaps it is simply because we work with such a variety of businesses - and are consistently seeing businesses both thrive, and fail to survive. 

The answer is that irrespective of Spain, Greece and a double dip in Britain, there are still great opportunities for good operators here in New Zealand. Many small businesses are struggling. But lets be realistic. Many small businesses are poorly run, and don't have the skills, direction, or vision to make the grade. And to make it worse, in the times when they do make money, all that money tends to be stripped out of them. Just because a business goes belly up, does not mean that we can blame the economy or the recession. Provided that they have a viable plan, good businesses have every chance of doing well.  So what is our view of the economy? We see opportunity. It's just that the darker the clouds, the harder one needs to look.


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