Global Entrepreneur Indicator shows positive growth for Kiwi businesses
Friday, 25 September 2015
Photo: Richard Conway.
The results of the Entrepreneurs’ Organization’s Global Entrepreneur Indicator survey have been released, and findings show that Auckland entrepreneurs have outperformed global results in many fields.
The Global Entrepreneurs Indicator (GEI) examines the current economic market and realities for entrepreneurs, and gives insight into their predictions for the next six months. This most recent survey shows more Kiwi entrepreneurial businesses have increased both their profits and revenues than the global average.
Findings indicate a growth in Auckland respondents’ net profits, revenue and access to capital, as well as increased staff and contractor numbers.
“Our members’ businesses have outperformed global results on everything other than use of debt, and we’re forecasting better results in the short term too,” says Richard Conway, Entrepreneurs’ Organization (EO) Auckland’s Communications Chair. “Although our official cash rate has come down, it’s still higher than most so it’ll be interesting to see whether more Kiwi businesses increase their use of debt funding as the Reserve Bank continue to bring that rate down over the next 12 to 18 months.”
While increases to Kiwi businesses’ net profit, revenue and access to capital show a slower level of growth than in 2014, they continue to increase nonetheless.
“Predicted change in the economy looks poor on the face of it, but other countries have had a much tougher time over the past few years,” says James McGlinn, Co-Founder and CEO of Eventfinda and EO Auckland member. “New Zealand's slowing down but I see this as simply taking us down to the slower level of growth the rest of the world is already at.”
Despite slower economic growth, attitudes toward New Zealand’s business climate remain positive among Auckland’s EO members. Of the entrepreneurs from the Auckland chapter who completed the survey, 90.0% reported a willingness to start a business in their current economic environment.
Nearly 4,000 of the more than 11,000 business owners that comprise the EO’s membership worldwide responded to the survey, representing chapters from 47 countries.
For more information, visit www.eoauckland.org