89% of Māori business leaders say it is important to
collaborate and partner with others when it comes to
achieving their business goals, according to the sixth
edition of BDO Pūrongo Pakihi Māori, the BDO Māori
Business Sector Report. Meanwhile, a record low 48% of
Māori business leaders feel positive about their current
overall business performance – suggesting a key opportunity
for Māori business leaders to further collaborate in
navigating current economic challenges.
The report,
entitled ‘Kaha Ake Tātou Kotahi – Stronger Together’ is
based on a nationwide survey – the largest of its kind –
featuring responses from more than 150 Māori business
leaders during September 2024. It reveals that Māori
business leaders are being challenged by New Zealand’s
current business conditions, especially economic
pressures.
Collaboration and partnering to
address skills shortages
“When times are
tough, we see more people collaborating – working together
to meet common outcomes. Where there are skills shortages
across pakihi Māori, collaboration is a great way for
organisations to share some of their mātauranga (knowledge)
and skill sets they have in their own organisations with
others. We are stronger together and collaborating and
partnering with others can help us achieve more.” – Angela
Edwards, BDO Māori Business Sector Leader
The
specific skills that Māori business leaders say are most
lacking in their organisations include creativity (31%) and
experience (31%). This makes collaborating and partnering
even more important to bring in new skills – along with a
continued focus on training and upskilling existing
staff.
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Business performance sentiment declines
as economic pressures continue
48% of Māori
business leaders feel positive about their overall business
performance, which is the lowest business performance score
for Māori business leaders since BDO started measuring this
in May 2022. Looking at key drivers, the five business
performance metrics (among 17 surveyed) which Māori
business leaders feel least positive about include: economic
factors, cash flow, political factors, financial
performance, and workload.
“The economic climate and
cost of living crunch are putting pressure on businesses all
over the motu, and Māori business leaders are not exempt
from this. And while Māori business leaders tend to be more
comfortable working toward long-term visions and goals, the
current climate is forcing them to focus more on short-term
financial and performance benchmarks to make ends meet.” –
Angela Edwards, BDO Māori Business Sector
Leader
People and purpose take precedence for
Māori business leaders
Māori business
leaders continue to place a strong emphasis on people and
purpose.
When asked how they measure success for their
business or organisation, 61% of survey respondents said it
was by having a happy and well whānau – even more
important than financial performance (60%) and having an
engaged team (50%).
Meanwhile, 39% of Māori business
leaders consider the primary purpose of their business to be
a combination of purpose (cultural, social, and
environmental) and profit (asset growth). A further 24%
consider their primary business purpose to be purpose alone,
followed by employment at 19%, and profit at
18%.
“For Māori business leaders, it’s not just
about profit – it’s about kaupapa, making an impact on
your community, and making mokopuna decisions. Our business
whānau are often more interested in leaving a lasting
legacy, not just making pūtea (money).” – Solomon
Dalton, BDO Māori Business Advisory
Partner
Wellbeing impacted by financial
concerns
Māori business leaders are
experiencing lower levels of wellbeing than in recent years.
The BDO Māori Business Sector Report shows the WHO-5 score
(the World Health Organisation’s measure of wellbeing over
the past two weeks) for Māori business leaders has declined
to 64, one of its lowest measures since BDO first started
tracking this metric in 2022.
The leading cause of
negative wellbeing for Māori business leaders is business
financial challenges, with 67% of business leaders who have
been feeling less mentally healthy than usual saying
business financial performance and cash flow problems are
driving this. Additionally, 55% say that feeling like they
don’t have enough people to rely on for support is
negatively impacting their mental health. Positively, many
Māori business leaders are taking action to stay mentally
healthy, including socialising with friends and family and
adopting flexible work practices.
“There are several
factors that are contributing to the decline in Māori
business leaders’ wellbeing we’re seeing in our survey,
the first being business financial performance. What’s
perhaps even more concerning is that these leaders are
feeling like they don’t have enough people to rely on for
support. It’s so important for our business whānau to
stay connected and lean on each other when times are
tough” – Solomon Dalton, BDO Māori Business Advisory
Partner
BDO New Zealand Māori Business Sector
Report 2024:
https://www.bdo.nz/en-nz/microsites/bdo-maori-business-sector-report-2024
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