Small business owners are dipping into their own funds to keep their companies afloat

Prospa's latest research shows 70 percent of Kiwi SMEs are stressed or burnt out - believed to be in response to a tough economic situation.

85 percent of retailers are facing the pressure according to the survey of 500 small and medium enterprises.

Prospa Managing Director Adrienne Begbie says people are using personal funds to cover business expenses.

She says retailers are struggling as no one's out buying.