Small business leaders are welcoming the Labour leader's vague promises to their sector.

In his State of the Nation speech yesterday, Andrew Little spoke of removing red tape and increasing tax breaks for small firms - but was light on detail.

Max Whitehead of Small Business Voice - formerly the Independent Business Foundation - says it's still more than they've had for a number of years.

"We haven't seen a concentrated effort like this in the past," he says.

"There's even a minister of small business we don't hear a lot from."

But Whitehead says they'll remain somewhat sceptical until Mr Little can provide more concrete plans and promises.

NZIER chief executive Laurence Kubiak says it's a break from the party's union and working-class traditions.

"If Labour is to have a future, it probably needs to position itself as something that does have something of value to offer the business community, including the small business community," he says.

Kubiak says cutting bureaucracy for small businesses would have seriously positive economic effects.