Government reforms aimed at incentives for growth
Auckland, January 31, 2018
Small Business Minister Stuart Nash has said that his Labour-led government is keen to improve the lot of the small businesses and promote them to become more progressive and profitable.
Speaking at the ‘SME LEAP’ (Leading Enterprise Acceleration & Productivity) held today at the Westpac Head Office at Britomart in Auckland City, he said that small businesses need better cash flow, financial and human capital and friendly policies to foster their growth.
Mr Nash said that Small and Medium Enterprises (SMEs) have a distinct role to play in New Zealand’s economy, providing opportunities for entrepreneurship, productivity and employment.
Sources of Innovation
“They are sources of innovation. Small businesses employ almost a third of our workers and contribute over 25% of our GDP. They play a crucial role in the economic prosperity of our country and the region,” he said.
According to Mr Nash, 42% of all jobs created in 2015 were in the SME sector and that these businesses account for more than 97% of all businesses in New Zealand and 96% in Auckland.
He said that innovative and hard-working entrepreneurs are more important to New Zealand’s programme today than ever before.
Preparing for challenges
“It is important to prepare and support SMEs to be flexible, adaptable and technically skilled for a world that is increasingly digital, global and specialised. About 72% of small businesses have internet sales, and with the continued roll out of ultra-fast broadband, more and more small businesses will ‘go digital,’ embrace e-commerce and be able to get their products and services into the best-paying markets,” Mr Nash said.
The world is changing and large multi-nationals like Ali Baba and Amazon are driving consumer behaviour and New Zealanders must be on top of these changes, he said.
“The core programmes that have been specifically designed to help small businesses sit within the Ministry of Business, Innovation and Employment. Improving efficiency and effectiveness in dealing with Government departments is top of mind for many small businesses,” Mr Nash said.
‘Pain Points’
He said that his government’s work programmes address the “pain points” expressed by businesses – issues that impede interaction with the government.
“We are listening. An obvious example is the 90-day trial in Employment Law. The feedback from the SME sector has played a part in the decision to retain it for small businesses. It strikes a balance between the needs of employers and workers,” he said.
Mr Nash will host 12 small business roadshows from May to September this year, the first of which will be held in Wellington on May 29, 2018.
Details of these events will be announced in due course.
About 120 entrepreneurs, government officials, policy experts and journalists attended the one-day programme sponsored by Westpac NZ and Staples Rodway Accountants.
The Conference coincided with the first meeting of the APEC Business Advisory Council.
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Photo Caption:
Small Business Minister Stuart Nash (Centre) with Radio Tarana Managing Director Robert Khan (left) and Conference Organiser and Entrepreneur Tenby Powell.
(Picture by Hemant Parikh)
