Published on the 11/08/2017 | Written by Newsdesk
MYOB report shows NZ is a top spot to start a business - but ‘more can be done’ to support start-up ecosystem…
Good news folks, the country has a healthy start-up culture – but more can be done to support the development of home-grown entrepreneurs. That’s emerged in MYOB’s State of Aotearoa’s Start-Ups Report.
The company’s NZ GM Carolyn Luey pointed out that in recent years New Zealand has made a name for itself as a great place to start a business in terms of environment, attitude and entrepreneurialism. “However, we think more needs to be done to establish New Zealand as a hub for start-up growth and development, including developing our education system, changing the public’s investment mindset and cultivating talented people who can help businesses to scale up,” she said in a statement
Luey added that while the total economic contribution of start-ups is difficult to measure, the opportunities they provide in terms of diversification, employment and long-term global potential make them a vital part of the local economy. “We need to keep developing the conditions that nurture and develop the businesses coming through, and couple those start-ups with frameworks and disciplines that can help turn a good idea to a great execution.”
In the report, MYOB said it identifies ways in which New Zealand can strengthen its start-up ecosystem. This includes requires better access to capital and investors who are willing to take risks.
“New Zealand’s economy is smaller than the likes of the US or the UK, so our investors are slightly more risk-averse. We need a better understanding of the growth-cycle of these businesses,” said Luey. “A smaller economy also means we have a smaller pool of people and organisations to supply funding. But start-ups with big and bold ideas need investors who are prepared to back them, despite the risk.”
Luey said shared working spaces are also beneficial to creative business-people, bringing benefits in terms of enabling start-ups to network with mentors, incubators and potential investors. “Start-ups require purpose built creative environments to collaborate and share ideas. We’ve seen it all over the world, particularly in places like Silicon Valley. By putting creative people in a vibrant environment designed to support the way they work, there has been a rise in the number of creative exchanges – everyone’s learning is greatly accelerated by being in the same place.”
The MYOB State of Start-Ups report also provides insights from industry leaders, incubators and investors, as well as data from international surveys. Together, the results suggest New Zealand is above average in terms of the essentials for a successful start-up environment.
According to the World Bank’s Ease of Doing Business Report 2016, New Zealand is second best nation in terms of managing ongoing compliance requirements, and the Global Information Technology Report 2016 names New Zealand as the number one country to start a business in.
“If you have the passion and drive to do something extraordinary – turning a small idea into a globally marketed product or service – New Zealand has the people, facilities and environment to help you get there,” Luey added.