Summer Questions: Auckland Business Chamber CEO Michael Barnett predicts SME failures early in 2022

Michael Barnett chief executive of Auckland Business Chamber. Photo / Supplied

Michael Barnett is chief executive of the Auckland Business Chamber.

How would you describe 2021?

The Auckland Business Chamber is a service and support agency for business. For a relatively small amount of time, we could provide services to business; for all the time, we were called on to support business. For most of the year we could not sell products or services and like businesses who were the same we lost money at significant levels – we had employees who we looked after and overheads we had to meet.

Providing support was traumatic. Our advocacy to the Government for businesses who were suffering – providing them a voice was important. Trying to create a narrative that Government understood and would listen to was challenging – there were competing demands for support and funding from them.

How do you plan to tackle 2022?

While we will go into an environment of unknown and uncertainty business is about risk so be prepared to take some risk. We will look at the things we have done well over the last two years and be prepared to do more of that. We will explore the areas we did not do so well and consider not doing those things again and we will diversify – look at the environment we believe we will have and create products and services that will suit those conditions. Keep good people because good people will be hard to get.

What will be the major challenges and/or opportunities for your industry?

The challenge will be the platform Government provides for business. To date, their motivation has been only health and we would like to see a better balance of health and economy. The Government has not been a good listener of business and there is an opportunity to create a better partnership. The opportunity is there for business to provide better information and communication to Government rather than compete with their ideas publicly and be solution providers, not moaners.

How do you think the Government has handled the Covid-19 crisis?

In fairness this was something there was no textbook for – it had the rest of the world to observe then create some solutions for the New Zealand context. In hindsight I would suggest there are some government agencies who are responsible for advising the Government who did not have the networks or relationships to do this well. There are some who developed expertise and some who still have not. I don't believe the Government trusted business as it could have – and hopefully will in future. The Government had a view of the world based on the big end of town and yet the SME by numbers is significant and very different. Those groups should have driven different responses.

What are two key things the Government should do for economic recovery?

Look closely at what NZ did well economically over the last two years and build on that – our export sector in some areas did very well and the Government could move to fix areas of concern in the supply chain for example.

Establish a business advisory group for the Government that isn't just the big end of town and listen.

What are your predictions for 2022?

An economy that is reasonably buoyant where business learns to use the environment that's available rather than complain about it. Borders will be slow to open but the Australian market will resume at a slower level but resume. That will lift the tourism sector which will have shrunk but will offer a more sophisticated product.

Expect early SME failures as a result of 2021 but this sector will recover well in 2022.

What's the worst mistake you've made in business?

The times I have not had a mentor/confidante.

What would you rate as your greatest success in business?

Learning to believe in myself.

Where are you holidaying this summer?

Mount Maunganui, Central Otago, Fiordland.