Tauranga business owners are starting to smile again as most think business is about to get better.

The latest Tauranga Chamber of Commerce Quarterly Business Confidence Survey shows that when it comes to their own business situation, 52 per cent of respondents expect their situation to improve in the next six months – which is an improvement on the last survey figures.

Less than half, 40 per cent, think their situation will remain the same and 8 per cent believe it will get worse.

The Business Confidence Survey of 144 Tauranga businesses is an electronic review by the Tauranga Chamber of Commerce.

However, in terms of the New Zealand general business situation, 32 per cent think it will improve, 50 per cent think it will stay the same and 18 per cent say it will deteriorate.

Tauranga Chamber of Commerce chief executive Max Mason says the survey results indicate that businesses are still waiting for an economic recovery and are in it for the long haul.

'We are seeing some good things – a net 44 per cent of business owners believe their own business situation will improve in the coming six months and that's an increase of 6 per cent since May. Another way to look at it would be to say 92 per cent think their situation will stay the same or get better.”

Among other findings, 19 per cent of respondents are continuing to find it difficult to employ skilled staff.

Also significant is that 41 per cent of businesses identified demand as the main limiting factor to growth.

'That's a bit of a surprise actually. I expected it to be higher,” says Max.

Max says with demand being an issue, it is important New Zealand businesses look outside the borders towards the dynamic Asian economy.

'If New Zealand firms are going to grow they should be thinking about how they can access those markets and Government agencies should be looking at how they can work with business to make this happen.”

'It shouldn't be just about a strong agricultural sector – we should have a broad range of businesses taking advantage of the free trade agreements which successive governments have put in place to help New Zealand businesses and the economy grow.”