Following on from our Level 3 Business Sentiment survey, the team at Amplify distributed a second survey during Level 2 (September 2021), to give us insight into local business sentiment during Level 2 of the current Covid-19 outbreak and to help us monitor if business sentiment had changed with the shift in alert levels. This survey provided us with a significant understanding of the challenges businesses are facing at Level 2, and an understanding of changes to business confidence between alert levels.
It was pleasing to see that at Level 2, 97% of respondents were able to open and operate their businesses. 44% of businesses were operating at 80% or more of usual revenue.
When asked how businesses felt at Level 2 compared to Level 4, sentiment was mixed. Many responses confirmed that they were feeling more positive in Level 2 and relief that Level 2 allowed greater operation and revenue. However the majority of responses acknowledged feelings of stress and anxiety at the uncertainty ahead and frustration at Auckland still being in Level 3.
Less confident that we'll bounce back quickly without Auckland getting to Level 2 sooner rather than later.
Level 2 allow us to make just enough revenue to pay our costs, bills, and staff, without digging too much from savings. It's definitely not sustainable, but better than level 4 and 3.
At least we are trading, one of our major costs is staff which we are holding on to, as once things return to normal we will need them.
The main challenges in operating at Level 2 were identified as:
General Level 2 restrictions of reduced capacity, social distancing and face masks.
The Auckland border and lack of visitors to the district
Reduced turnover and income
There are a number of businesses who have staff working at reduced hours, with only 58.8% of businesses responding that staff were working the same hours as usual.
Supply chain issues are a concern, 58.8% of respondents confirmed that they are having issues with their supply chain.
Areas in which businesses need support from Amplify:
Businesses identified the key things Amplify can do to support them right now is to:
Continue providing timely information, particularly about government support available for businesses.
Advocacy to central and local government, particularly about the impact on the accommodation and hospitality sectors.
Promote the need for compliance with Level 2 guidelines, by both businesses and consumers.
Encourage locals to support local.
The business Insights survey was completed by businesses from a range of industries and business size