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Māori in business – Where is the
trickle down?
Presented by Markus Schwarzer
Table of Contents
Ma ori in Business…....................................2
The Trickle-Down-Effect…............................3
Māori authorities – Indicator for Success?….…...…4
Māori authorities across New Zealand..............5
Total New Zealand Businesses ……….……….……....6
3 Reasons for Failure………….........................7
3 Ways to Ensure Success…………....................8-10
Success within grasp…...............................11
About the Author…...................................12
Slide 1
Maori in business – the trickle down effect works very slowly
Maori in Business Maori (indigenous) economic development for me is an
overall indicator how well we are doing in New Zealand.
I am not Maori nor an expert on Maori Businesses.
However, I have worked with Maori and Pacific Islanders
on developing basic business skills at the ‘coal face’.
I can only offer simple observations, having lived and
worked in New Zealand for the last 30 years.
Slide 2
Maori in business – the trickle down effect works very slowly
Trickle-Down-EffectTrickle down economics is a term used to describe the
belief that if high income earners gain an increase in
salary, then everyone in the economy will benefit as
their increased income and wealth filter through to all
sections in society.
Well, looking around, particularly in Northland, I have
not seen a lot of evidence of the trickle-down impact.
Slide 3
Maori authorities – Indicative for Business Success?
Within the New Zealand economy Maori businesses
include Maori authorities, small- and medium
enterprises, and Maori-in-business (self-employed).
Total income for Maori authorities increased $430m in
2012 to $2.9bn in 2013.* This is a massive increase.
The following graphs review the growth Ma ori Authorities And more importantly how many jobs were created:
Slide 4
* Tatauranga Umanga Ma ori 2015. Tatauranga Umanga Ma ori 2015 provides a range of statistics on a subset of Ma ori businesses that
contribute to our country’s economy – Ma ori authorities.
Māori authorities across New Zealand (units)
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2010 2011 2012 2013 2014
Māori authorities Jobs filled
Slide 5
Source: Tatauranga
Umanga Ma ori 2015
Māori authorities ACROSS NEW ZEALAND grew from 1,101 to 1,191; Jobs filled grew from 7,900 to 8,300 over 5 Years.
Total New Zealand Businesses (units)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2010 2011 2012 2013 2014
Total NZ business Jobs filled
Slide 6
Source: Tatauranga
Umanga Ma ori 2015
Businesses growth in entire NEW ZEALAND from 510,000 to
523,000; Jobs filled grew from 1,77m to 1,86m over 5 Years.
3 Reasons for Failure
The below reasons are based on my personal
observation:
1. Lack of basic Business Skills
Basic business skills are quite often not present – either not
been taught or people are reluctant to embrace.
2. Insufficient ongoing Support
Some polytechnics churn out graduates in business but its
lacking a proper support network to sustain enthusiasm.
3. Failure to Understand Market and Customers
This is tricky at the best of times – requires the ability to
do in-depth research which is quite often beyond people’s
capability.
Slide 7
3 Ways to Ensure Success
1. Essential Business SkillsEquip people with the basic business skills such as
budgeting, cost control and marketing tools.
I have seen huge development in people once the basic
concepts were understood. Sure, some people will
embrace it more than others, but once the confidence is
built, people move into the ‘business zone’ with more
ease than I ever expected.
The training must be ‘hands-on’ right from the start –
some could be linked to NZQA unit standards but it’s
not vital.
Slide 8
3 Ways to Ensure Success
2. Ongoing Support
This is a critical part in the development of business skills
because there will be set-backs – some will be painful.
Therefore a good support network of people with different business skills sets is critical to sustain the effort.
Ideally an on-going mentoring programme that may include other core skills such communication, how-to research and social media profiling.
Have a checks & balance system in place that helps people new to business and their mentors objectively check on progress.
With providing on-going support the commitment (and confidence) will grow – and in turn create a positive outlook.
Slide 9
3 Ways to Ensure Success
3. Embed in Local Community
Any Māori or non- Māori business venture needs to be embedded into the local community infrastructure including the local Chamber of Commerce, existing community groups and local business mentors.
Develop hand-in-hand partnerships at local level
Apply Best Practice methods – use what works
Generate local led employment, particularly for Youth
Running a business in isolation is not a good thing.
Slide 10
Success within grasp
Do the 3 key areas really ensure success?
Yes, they certainly will go a long way to achieve more favourable results – whilst we hold for the long-awaited Trickle-Down-Effect:
Essential Business Skills
Ongoing Support
Embed in Local Community
I have seen it seen it first-hand: people looking after budgets, doing research how to reduce costs and teaching others – passing on skills.
Slide 11
About the Author
Markus Schwarzer is the director of CERTO.
Certo is a New Zealand based company that specializes in
helping business owners to grow.
CERTO applies proven business tools that deliver real,
measurable results to the bottom line.
Contact CERTO for a FREE assessment of your business.
[email protected] http://www.certo.net.nz
Slide 12
