WOMEN IN BUSINESSREPORT

REPORT

November 2015

RISING TO THE CHALLENGES OF LEADERSHIP

WOMEN IN BUSINESS REPORT NOV 2015

Increasingly, the local entrepreneurs who are taking the courageous first step to set out on their own are women. In our latest MYOB Business Monitor survey, women represent almost 40 per cent of the total sample of over 1,000 SME operators from around the country – up from just 30 per cent in 2012.

Not only are we seeing increased participation from women in the small business sector, they are also changing the nature of the local economy.

Women are actively pursuing growth, in a way that makes it possible for them to achieve a greater balance between the work they are passionate about and the other areas of their life. By doing so, they are creating new models of business, providing employment opportunities and increasing flexibility for other women to pursue careers that they can balance with other commitments.

The growing influence of women in the largest area of local businesses – the SME sector – is not only having a positive effect on the economy. It is also allowing New Zealand to benefit from greater diversity, new innovation and a responsive and dynamic platform for 21st Century business.

In this latest edition of the MYOB Women in Business report, we hear the perspectives, recognise the contribution and celebrate the successes of small business leaders from around the country. We also benchmark the performance of businesses run by women, and look at the challenges and opportunities they see in the year ahead.

New Zealand has a strong entrepreneurial culture. As a nation, New Zealanders like to follow their ideas and pursue their passions in a way that gives them the freedom to earn, build and create new things.

RISING TO THE CHALLENGES OF LEADERSHIP

Natalie Feehan General Manager of Group Marketing, MYOB

myob.co.nz

@myob

AND CONFIDENCE

While the proportion of women reporting an increase in revenue has remained stable since the March 2015 Business Monitor at around 30 per cent, the number reporting a fall in revenue has risen slightly over the last six months from 21 per cent to 25 per cent.

Thirty-one per cent of women business owners are confident of an improved revenue performance in the year ahead, which has also dropped from 36 per cent in March. Meanwhile, the proportion of women expecting their revenues to fall in the next 12 months has doubled to 20 per cent.

The beginning of a slowdown in the small business sector is also reflected in the work women business operators have booked for the current quarter. Twenty-nine per cent have more sales in the pipeline and 20 per cent have less. This is also down from the March survey when 34 per cent had more sales in the pipeline and 14 per cent less.

The women participating in the survey are most strongly represented in the professional sector (34 per cent), the primary industries (21 per cent), retail and hospitality (10%) and the trades (6%). Those in the retail sector have the highest confidence of improved revenue in the year ahead (45 per cent), while women working in the rural economy are most likely to be forecasting a fall in revenue (30 per cent).

New Zealand women business operators are seeing the cooling in the economy mirrored across the sector in their own performance indicators, according to the latest MYOB Business Monitor.

WOMEN IN BUSINESS REPORT NOV 2015

Women in Christchurch are reporting a marked cooling in the local economy over the last 12 months. Just 21 per cent saw their revenue increase in the last 12 months, compared to 30 per cent in Auckland and 24 per cent in Wellington, while 44 per cent reported a fall (18 per cent Auckland, 20% Wellington). Women in Christchurch seem to be feeling the effects of the plateauing rebuild more strongly than their male counterparts, with just 29 per cent of all SMEs in the city reporting a fall in revenue in the year to August.

Confidence among women in business is consistent with the whole SME sector. Half are expecting the economy to decline over the next 12 months – 9 per cent significantly – while 22 per cent say it will improve.

of women increased their business revenue in the last 12 months

(25% revenue down)

expect an increase in next year

(20% revenue decline)

have more sales in the pipeline

(20% less)

think NZ economy will improve

(50% decline)

TO IMPROVE

AUCKLAND

WELLINGTON

CHRISTCHURCH

REST OF NZ

The firm specialises in providing sound tax advice for small- to medium-sized businesses, by offering high-quality accounting services, at realistic prices.

Beginning in a home office environment, the business now has four offices in various parts of the country. “We started from our home offices with just a handful of clients. Through word of mouth, the business just took off,” says Dawn. “The secret to our success is definitely hard work, striving for excellence, and having absolute efficiency in everything we do.”

Dawn says the biggest challenge of being a woman in business is achieving work/life balance. “In our field, we can’t take on temporary staff because of the training time involved. We had one particularly hard year when a third of my office staff were on maternity leave. But, we did what any woman would – rolled our sleeves up and did what we had to do.”

Another big challenge is being flexible with your team, she says. “This is a key thing for women – it’s having that flexibility and sensitivity, so that they can take time off to attend, for example, a kids’ event.”

Dawn says one of the unique qualities women bring to business is the ability to multitask. “Because women have to juggle various roles, they naturally become super efficient and highly organised to get through their workload during the day. Like the old adage – if you want something done, ask a busy woman. We are hard workers by nature, so when times are hard we simply do what needs doing.

“I also think generally women have the ability to show empathy towards clients, and they form very interesting business relationships on many different levels.”

Dawn says she and Annette are passionate about working with women in business. “I’ve been through the majority of what my staff have been through. I know what it’s like to spend years on your career, climbing that proverbial ladder – why should you have to sacrifice that because you want a family as well? I’m living proof that you can have a family and a career, and do well at both. You don’t need to sacrifice either in any way. You have to be very organised, but it’s possible.”

Dawn’s advice for women in business is to make sure you’ve got good systems in place from the beginning.

GILES & LIEW

Chartered accounting practice Giles & Liew Partnership was formed 18 years ago, by two entrepreneurial accountants, Annette Giles and Dawn Liew. The practice was incorporated as a limited liability company in 2005.

WOMEN IN BUSINESS REPORT NOV 2015

“Get good staff because they are your business. Partner with the best. Ensure you’ve got some good

support at home and don’t compromise on your tools of trade. We very much strive on being as efficient as we possibly can. If you want to aim high, then you’ve

got to have the staff and the equipment to enable you to get there.”

WOMEN IN BUSINESSThe pressures on women in business have continued to decrease for more than a year. However, the survey underscores that women in business are still feeling key pressures more keenly than the SME average.

Among the growing pressures are signs of a more competitive economy, where women are preparing to work harder to attract and keep new customers.

WOMEN IN BUSINESS REPORT NOV 2015

TOP FIVE

Competitive activity (22% all SMEs)

Price margins and profitability

22%(20% all SMEs)

24%Fuel prices (20% all SMEs)

22%Attracting new customers (23% all SMEs)

Cashflow22%(20% all SMEs)

24%

Over the next 12 months, a quarter of women are planning to maximise productivity and streamline their operation by increasing their investment in IT systems. Many are also planning to offset costs and increase margins by raising their prices.

Once again, women are also more likely to be investing in their staff, with 22 per cent intending to pay more in wages and salaries over the next 12 months, compared to the SME average of 20 per cent. Employment intentions are lower however, with just 6 per cent planning to increase the number of full time staff and 10 per cent the number of part timers.

FOR THE YEAR AHEADSTRATEGIES

WOMEN IN BUSINESS REPORT NOV 2015

TOP FIVE

25%Investment in

IT systems

24%Increase prices and

margins on products/ services

23%Customer retention

strategies

22%Amount paid to

employees

22%Customer acquisition

strategies

Raewynne established Rho Design Ltd in 2002 and says having a home-based studio means the two responsibilities often have blurred boundaries. “As my children have grown older it has become easier, but finding that happy balance can be hard some days.”

She says advice she would offer women seeking to develop their business is to believe in themselves and their abilities. “Women can do anything they put their mind to. We are strong mentally and have great multitasking skills. So take that leap towards your goal, don’t be afraid or let anyone tell you that you can’t have it all.

“Just remember to do what you need to do to recharge your batteries along the way.”

She says truly understanding her clients has enabled her to establish a successful business. “It’s about dealing with people on a personal level, versus just churning out the work.”

Specialising in customised design work – from producing wedding invitations, and developing product or service brochure designs for businesses, and graphic design – Raewynne uses MYOB Essentials accounting software to keep track of exactly how her business is performing.

Raewynne says as the business grew, keeping up with current software was essential. “I deal with my clients mainly via email, so I can be in touch with them wherever I go. It’s very important that I keep up with technology, so I can use my time efficiently.”

RHO DESIGN LTD

Finding the ideal work/life balance is the biggest challenge of running a business for Christchurch-based graphic designer and mother of two, Raewynne Hay.

WOMEN IN BUSINESS REPORT NOV 2015

“I have much more time on my hands now, which with working from home with two kids to run around after, is very important to me.”

VOTE

The Business Monitor survey highlighted that just 17% of women business owners were satisfied with the Government’s current level of support for businesses, and 32% were dissatisfied. Levels of dissatisfaction have risen significantly since March, when 24% were dissatisfied and 28% satisfied.

The Government appears to be losing the confidence of the women’s electorate, with a marked increase in dissatisfaction among women in business.

WOMEN IN BUSINESS REPORT NOV 2015

IN BUSINESS

A range of policies appeal to the vote of women in business, particularly those designed to bring down costs, such as reducing the ACC levy paid by businesses, and cut red tape, like Provisional Tax. Women remain opposed to raising the superannuation age and the introduction of GST on online purchases while so-called zero hour contracts are also not favoured.

FOR WOMEN IN BUSINESS FOR WOMEN IN BUSINESS

Simplification of provisional tax rules and processes to make it easier for businesses to accurately determine

and meet their tax obligations

An optional pay-as-you-earn system as an alternative to provisional tax

Introducing an instant write-off for depreciation for new assets

purchased up to $5,000

Reducing the ACC levy paid by businesses

Moves to raise the superannuation entitlement age to 67

Introducing GST for online purchases from offshore retailers

Extending the 90-day trial period for new employees to 120 days

Legislating in favour of zero hour contracts for SME employees

VOTE AGAINSTVOTE FOR

A BUSINESS?New Zealand women are taking the bold step of starting up their own business in order to achieve greater freedom, flexibility and balance.

While establishing a profitable, growing business is a key goal, it is clearly not the sole driver for women entrepreneurs, who also value improving their lifestyle and having more time for family and friends.

As a result women have also been able to find a good balance across all aspects of their life and career, with 64% reporting they are happy with their work/life balance and just 18% dissatisfied.

WOMEN IN BUSINESS REPORT NOV 2015

NEW ZEALAND WOMEN

MAIN GOALS

went into business to

control their own destiny

needed flexibility in a role

to do what they want, when they want

wanted a total lifestyle

change

were pursuing their

passion

wanted to spend more time

with family

To make money and have

flexibility for family, holidays

etc

To make money from something I love doing – I’m

pursuing my passion

My aspiration is to grow and make a good

income

A way to make money while in

semi-retirement

To create a family business to leave

to my children

After 12 years working in 3D computer generated design for events companies, Sarah purchased a 3D printer when she realised it could be a useful tool to expand her skills. “After I got my first 3D printer, that subsequently grew into six, seven, then eight printers,” she says. “I then quit my job and started my own business, Idea Beans.”

Sarah was offering 3D design for events, but wanted to introduce 3D printing and scanning technology into her business. “I started printing things like prototypes and toys for clients. I was also thinking about what I could design using this technology to create things people hadn’t seen before.”

One of her business highlights is being involved in e-NABLE, an organisation she volunteers for, providing 3D printed prosthetic hands. “As well as being able to use the technology in a meaningful way, I’ve found the learning process from that experience rewarding.”

She says the initial challenge of building her business was learning the art of 3D printing. “Because I wanted to focus more on the 3D printing and scanning side of things, learning the technology and then getting those skills perfected before I could push that side of the business took a lot of time and practise.”

Sarah says any challenges she encountered along the way have nothing to do with the fact she is a woman in business. “When I was working fulltime for other companies I didn’t feel discriminated against – I know I’m capable and I’m actually more capable than most of the male staff.

“I just do things because I can and I’ve got the skills for it. So, whenever I need to perform – I perform. I applied that attitude after I started my own business too. My clients value my skills because they know I can do the job for them, regardless of my gender.

IDEA BEANS

In 2012, Auckland-based entrepreneur Sarah Lin turned her passion for 3D design into her own business.

WOMEN IN BUSINESS REPORT NOV 2015

DRONES

“For women in any industry, if you really have passion for what you do, just go for it and start your own business –

you have just as much chance for success as anyone else.”