Finance Minister Bill English says the road to recovery from the recession will be patchy.
He told Parliament's Finance & Expenditure Select Committee during a financial review of the Treasury that some bigger businesses are doing well, but smaller ones are still struggling.
He says one of the reasons is that banks are not extending credit to them.
Mr English says smaller companies are stretching out their creditors, but they are getting close to their limits.
While business confidence appears to be quite high, he says it remains to be seen whether that results in more investment and more jobs.