Business owners reveal ‘Why NZ?’

Our peaceful little slice of South Pacific paradise not only makes New Zealand a great place to live – it’s also the key reason Kiwis choose to stay and set up businesses here, according to a new study. 

In the latest MYOB Business Monitor, a regular nationwide survey of over 1000 small to medium enterprises, New Zealand business owners were asked to rate the key advantages of running a business here rather than overseas.

MYOB general manager Julian Smith says the survey highlights that business owners consider a wide range of factors – including lifestyle – when they choose to start a business in New Zealand.

“This survey shows that New Zealand, by virtue of its relaxed culture, amazing lifestyle, and safe and stable business environment, enjoys some impressive advantages when it comes to running a business.”

“Unfortunately, when we look at New Zealand’s economic performance – particularly in comparison with our trading partners, many of these intangible factors aren’t measured.”

“But they do have an impact on New Zealand’s prosperity – they make us a safe place to invest, a country with a recognised international brand, and a culture that respects education and celebrates innovation.”

 

The survey found that New Zealand’s reputation as a safe place to work and great lifestyle were the most attractive aspects of operating a business in this country, with 83% and 82% of business owners respectively highlighting it as an advantage of running a business in New Zealand. 

Julian Smith says that living in such a safe country, it is easy to forget how lucky New Zealand is. “We often take it for granted, but this survey is an important reminder that New Zealand is a great place to work and a safe, secure place to invest, and that this is a real economic advantage for our country. If you look around and see all the unrest and uncertainty around the globe, you can understand why New Zealand stands out as such an appealing place to own a business.” 

 

The high quality of New Zealand’s education (77%) and economic stability (75%) were also key advantages of running a business in New Zealand according to local business owners. 71% believe New Zealand’s number 8-wire mentality and culture of innovation offers real benefits for companies working here. 

New Zealand’s business friendly government and low levels of bureaucracy, cited by 64% and 54% of business owners respectively, are seen as important to the business community. 

 

Businesses also listed New Zealand’s positive international brand and reputation as an advantage, with 65% believing both positive tourist perceptions and New Zealand’s clean, green environment make a difference to the business environment.  

“It should be no surprise that New Zealand’s clean and green image is so widely regarded as an advantage for our businesses. It is a real boost to our exporters, especially in a world where issues like bio-security are becoming more and more important. Being able to leverage off the strong brand of ‘New Zealand Inc’ is an attractive prospect for business owners in the global market,” said Julian Smith.

 

Running a business in New Zealand is not all rosy, however, with some strong themes emerging around the disadvantages of operating in this country rather than elsewhere. Few business owners believe New Zealand’s high-value dollar offers any kind of advantage, seen positively by just 32%, while just 36% saw a benefit in New Zealand’s relatively low wages.

“Clearly business owners are making some trade offs to work here,” says Julian Smith. “They might enjoy the lifestyle and the ability to be close to friends and family, but the costs of competing in export markets and the continual struggle to attract staff who can get higher wages offshore make it harder to run a business in New Zealand.”  

 

Notably, views on the benefit of different aspects of New Zealand differed significantly from sector to sector.

Amongst businesses in the hospitality and retail sector, the strength of New Zealand’s education system, rather than safety, was regarded as the biggest advantage (83%). The sector also rated positive tourist perceptions higher than New Zealand business owners a whole, with 70% agreeing it was a key advantage.

In New Zealand’s construction industry, attitudes towards the level of bureaucracy were noticeably less positive than in other sectors, with only 48% agreeing it was an advantage, compared to 54% for the country as a whole.

Amongst exporters, New Zealand’s culture of innovation was far more widely regarded as an asset, with 81% of exporters citing it as a key advantage compared to just 71% for the rest of the country.

“The experiences of different business owners have a real impact on whether a sector is likely to consider these areas an advantage for the economy or not,” said Julian Smith. “In industries like construction, for example, where business owners often have to deal with a lot of red tape, regulation and resource consents, New Zealand’s regulatory framework is far less likely to be seen as an advantage than in other sectors. These numbers provide a real insight into what aspects of the New Zealand economy make a difference for business owners,” said Julian Smith.

 

There were also sizeable differences in opinion between older and younger business owners. 

Most notably, members of Generation Y were significantly more likely to consider New Zealand’s clean, green environment a major advantage (81%) than Generation X (65%) and Baby Boomers (63%). Similarly, Baby Boomers were far more likely to consider safety a key advantage (86%) over Generation X (75%) and Generation Y (76%). Younger business owners were also more likely to be frustrated by regulations and red tape, with just 37% agreeing New Zealand’s levels of bureaucracy were an advantage, compared to 54% of Baby Boomers and 52% of Generation X.

Julian Smith says these results demonstrate how the face of New Zealand business is changing as a new generation begins to play an important role in business.

“With more and more young New Zealander’s owning their own businesses, these numbers show that new values and approaches are entering the market. This will be important to understand going forward in ensuring that New Zealand continues to be seen as an attractive and exciting place to do business.”