Our independent report, The State of IT for NZ’s SMEs, found that instead of cutting back, a majority of businesses were doubling down on their technology investments. Overall, 56% of SMEs planned to increase their IT budgets for the year, while only a tiny 2.2% were planning a decrease.
This wasn't panic-spending. It was a strategic decision to invest their way toward resilience and growth.
A Tale of Two Businesses
When we dug deeper, a clear difference emerged between the investment appetites of small and medium-sized businesses.
For medium-sized businesses, the trend was overwhelming. A huge 70.5% were increasing their IT budgets. They saw technology as the core engine for efficiency, security, and customer experience.
For small businesses, the approach was more cautious. Just over half (54.9%) chose to keep their budgets the same as the previous year.
What drove this difference? As our report highlights throughout its findings, the person making the decision is key. We found that in organisations where a dedicated IT Manager or other technical leader was in charge, budgets were predominantly increasing. In organisations where a non-technical founder or GM made the decisions—as is common in small business—budgets were more likely to be held flat.
This data suggests that those closest to the technology best understood the urgent need to invest in modernising, securing, and optimising the tools that kept their businesses running.
Investing in a More Resilient Future
The pandemic served as a global, real-world business continuity test. The organisations that came out strongest were those that could adapt quickly, and technology was the core enabler of that agility. The decision by a majority of SMEs to increase their investment wasn't just about buying new tools; it was a vote of confidence in a more digital, more resilient future.
For a full breakdown of budget changes by business size and the top investment priorities for NZ SMEs, download the complete, independently researched report. Available here: The State of IT: New Zealand’s Small and Medium-Sized Business Edition
