The Bank of New Zealand’s (BNZ) first Māori Business Sentiment Survey has highlighted the strong economic challenges Māori enterprises face while revealing their resilience and potential for growth.
BNZ rolled out the findings of its inaugural Māori Business Sentiment Survey yesterday, shedding light on the economic challenges and growth prospects of Māori enterprises.
The survey, which the bank says is designed to fill the data gap surrounding Māori businesses, offers insights into their current state and outlook.
The report
The survey, which collected 125 responses from people involved in Māori businesses, identified economic conditions as the most significant challenge, with 71 per cent of respondents citing it as their primary concern.
On top of that, nearly half (46 per cent) reported a decline in business conditions over the past year, while only 15 per cent noted improvements.
BNZ’s chief economist Mike Jones contextualised the findings within the broader economic landscape.
“The sentiment expressed in these findings echoes what we’re witnessing in other parts of the economy as we navigate through the trough of the economic cycle. If anything, the confidence levels amongst survey respondents are on the weaker side of broader confidence indicators.
BNZ chief economist Mike Jones.
“This may reflect the Māori economy’s considerable investments in agriculture, forestry, and property – sectors that are currently under some strain,” he said.
Rising costs: 82 per cent of respondents expect costs to increase over the next 12 months.
Profitability concerns: More respondents think profitability will decline (33 per cent) compared with those who think an increase is coming in the next year (27 per cent).
Employment trends: A similar trend, with 34 per cent anticipating a decrease in employment levels compared to 29 per cent expecting an increase.
Despite the challenges, the survey also showed the resilience and optimism within the Māori business community.
Although only 15 per cent saw improvements in business conditions over the past year, 26 per cent anticipated better conditions in the next 12 months, and over a third (37 per cent) of respondents planned to increase investment in the coming year, compared with 24 per cent who expect to decrease it, revealing confidence in future growth potential.
“The investment plans reported in our survey are more robust compared to what we’ve seen in other business confidence surveys. As the economic cycle matures, we’ll be closely monitoring whether these intentions gain further momentum,” Jones said.
Data gap
BNZ Māori business head Whetu Rangi highlighted the importance of the survey in bridging the knowledge gap.
“The data gap around the sector has been a barrier to understanding and supporting the Māori economy. By launching this survey and committing to conducting it regularly, we are aiming to bridge this gap and foster ongoing collaboration and knowledge sharing. We believe that this survey will become a valuable tool to promote better understanding of the sector and help facilitate the flow of capital within the Māori economy,” Rangi said.
