The September quarter survey results showed the confidence of small firms in the business environment lifted to 17% from 8% in June.
Growth prospects for Wellington (28%) and the South Island outside Canterbury (19%) were the highest, followed by Auckland (18%) and Canterbury (10%)
The survey did not record activity for regions such as Otago which grated with Otago Chamber of Commerce chief executive Dougal McGowan when he was contacted for comment yesterday.
``How often do we have to put up with this generalisation? What happens in Nelson and Murchison is different from Queenstown and Invercargill.
``We need to start remedying this or be known forever as the `rest of the South Island'.''
The chamber survey results were also released yesterday and they showed a significant jump in optimism, he said.
Of the members surveyed, 60% said the New Zealand business situation would continue to improve, up from 36% in June.
For their own businesses, 71% were predicting an improvement and 25% expected it to stay the same.
``That means 96% believe it will be the same or better for them. This is the positivity I have been talking about from members for a long time.''
However, there were some concerns from various members, with the main one being the amount of staff turnover, Mr McGowan said.
Nearly 80% of 800 members surveyed expected some turnover of staff in the foreseeable future.
Rising wages were also concerning some members, with 84% expecting rises of between zero and 5% in the next 12 months. While rising wages were generally viewed positively, 50% of those surveyed thought rising wages would bring pressure to their businesses.
That was something for business owners to start monitoring quickly, he said.
If staff costs were going up, and the businesses hit a downturn, staff might have to be laid off. Businesses needed to make sure their monitoring systems were in place.
Higher wages were due to businesses wanting to retain staff or attract new people. Skilled workers had plenty of options, Mr McGowan said.
ANZ economist Steffan Herrick said a net 30% of small firms nationally expected a lift in activity for their business in the year ahead.
That showed confidence in ongoing demand for their products and services, flowing into more investment, expanding their workforce and even more impetus for growth prospects.
Construction and services were leading the pack, and even small firms involved in agricultural activities were more buoyant, lifting to 11%.
``While there's still a way to go for the agricultural sector, the recent lift in dairy prices appears to be giving businesses something to look forward to.''
Retailing was the only sector to record a drop, he said.
Mr McGowan said some Otago retailers were also feeling squeezed as the spring weather became fine.
Home renovation stores and garden centres were experiencing higher sales as people started tidying up their property before summer. That meant other retailers were not seeing as many customers.
The ANZ survey showed small firms were expecting to expand their workforce. Hiring intentions were up four points to 14, the highest in more than a year and sitting well above the five-year average.
Hiring intentions in manufacturing and construction businesses were up. Agriculture improved 16 points but was not yet in a hiring mode with a reading of -2, Mr Herrick said.
Services were flat, but at 19, were well above historical averages. Intermediate-sized firms lifted six points to 21 and micro firms nudged upwards two points to seven.
However, when it came to problems faced by businesses, the message was clear: ``We want more skilled labour but we're struggling to find it''.
The labour market was healthy but it was tightening, he said.
Migration was booming and bringing people who could and wanted to work but businesses still felt they were being held back by the talent pool.
It had been the biggest problem constraining small firm growth this year and had strengthened for the larger business, now out to 32%, Mr Herrick said.
There were the usual bits and pieces in terms of other issues. Of note was low turnover ranking only fourth, showing the economy had plenty of demand but the issue was fulfilling it.
The ANZ survey included responses from 247 firms, made up of micro (up to five staff) and intermediate-sized businesses with six to 20 staff.
