Small New Zealand businesses are feeling the impact of widespread Covid in the community and reduced foot traffic in city centers, Buy NZ Made says.

Executive Director Dane Ambler says more needs to be done to stimulate trade in CBDs across the country.

"We've urged people to shop local since the start of the pandemic, and we are now seeing a significant number of businesses on the edge.

"In particular our tourism, hospitality and retail sectors need our full support right now."

The Government has offered targeted payments to businesses struggling under the red traffic light setting, an interest-free extension to small business loans, and flexibility on tax payment dates.

But according to Hospitality NZ, half of hospo businesses do not believe they can sustain trade for 1-3 months and 70 per cent in the sector will have to reduce staff hours to cope.

A snapshot survey from the Wellington Chamber of Commerce and Business Central suggests 40 per cent of businesses in the Wellington region have seen their revenue halved since before the pandemic began - with the lowest levels of business confidence seen across their historical data - net negative 45 per cent.

"These figures are some of the lowest confidence levels since data collection began. They suggest times are dire for small businesses," Ambler says.

"Fifty-nine percent of retailers are unsure if they will survive. This is having a huge impact on the wellbeing of business owners and their staff.

"Let's all do our part and shop local to support Kiwi business through this tough time."