Business needs prophets

By JIM EAGLES

New Zealanders "seldom identify the role business plays in a well-performing economy and ... rarely make the link between strong economic performance and social wellbeing".

That is the key conclusion of research carried out for Industry New Zealand as part of a Government project to develop a business and enterprise culture in this country.

The research, released today, also reveals that there is little understanding of what brings about economic success, a low level of interest in business and economic matters, a lack of enthusiasm for business success and a lot of negativity towards business.

Those findings are based on a public-opinion survey of 1001 people and interviews with 120 teachers, conducted for Industry NZ by BRC Marketing and Social Research.

The aim was to answer two key questions: "Is business and the economy in general of interest to New Zealanders?" and "Does New Zealand have a business enterprise culture at present?"

After analysing the public-opinion survey results, BRC's answer to both was a definite: No.

Business and the economy, it concluded, "is not a high interest subject for most New Zealanders".

In fact, when asked what factors would ensure an ideal New Zealand, economic growth barely rated a mention.

Only 2 per cent of respondents even thought of business growth and only 6 per cent mentioned a well-performed economy.

The main responses were better law and order, more spending on education, more spending on health and a clean, green environment.

Asked to name the benefits of a well-performing economy, 13 per cent of respondents could not think of any. The most common responses were jobs for everyone, more money in people's pockets, a higher standard of living and more money for health and education.

When prompted, 96 per cent of those interviewed did agree that a sound economy was necessary for the country's wellbeing.

But 90 per cent also took the view that business was only good so long as it contributed to the wellbeing of the community, 47 per cent described business as a "necessary evil" and 56 per cent rejected the notion that the main function of a business might be to make profits for shareholders.

Although most respondents expressed admiration for people who start up their own businesses - The Warehouse founder Stephen Tindall and cereal manufacturer Dick Hubbard were the most commonly mentioned - nearly a third indicated they were not in favour of celebrating business success.

The survey also found a low level of interest in business and economic matters with 42 per cent saying they considered economic issues "quite boring".

Not surprisingly, therefore, only 22 per cent felt confident about discussing the economy in general and just 28 per cent thought they understood the sort of policies which might make the economy perform better.

"Against this background," BRC concluded, "it is not surprising that New Zealand does not currently have a business enterprise culture."

For instance, it said, "a substantial proportion of New Zealanders appeared to have little idea as to what would bring about economic success."

Pressed on the point, 22 per cent could not suggest a single thing that might help economic performance.

Of those that did have something to offer, the most common suggestion (from 14 per cent) was the right sort of education, followed by better government (7 per cent), government support or more people in employment (6 per cent).

No one mentioned key issues for business such as lower compliance costs, more overseas investment or more favourable exchange rates and just 1 per cent referred to lower taxes, low inflation, lower interest rates, tax incentives or trade promotion.

The survey also revealed few ideas on what sorts of businesses might boost the economy beyond the traditional beef, sheep and dairy farming.

Fortunately, given that education could be the key to developing a more enterprise-oriented culture, the separate interviews with teachers revealed a greater interest.

Only 18 per cent of teachers found economic matters boring and virtually all indicated a strong commitment to a well-performing economy.

But 36 per cent of teachers also described business as a necessary evil.

The research will be used to benchmark success in the campaign to develop a business and enterprise culture.

BRC warned that changing attitudes to business was likely to take a long time and require a wide range of initiatives.

The Govt remedy:

The Government launched the Business and Enterprise Culture Programme in February last year to develop a more innovative and entrepreneurial society. Initiatives include:

* A 13-part television series on business.
* Carter Holt Harvey New Zealand Pavilion, in the America's Cup Village, celebrating innovation leaders.
* Educational material for schools.
* Venture forums to discuss business issues.
* Regional industry clusters.
* SmartNet network linking business people, educators, researchers and policymakers.
* Enterprise Olympics for high school students.
* Ernst & Young Entrepreneur of the Year Awards.
* Enterprise Culture and Skills Activities Fund which has so far put $3.9 million into 23 private initiatives.