Secret Spot co-founder Keith Kolver. Photo / NZME
Bay of Plenty businesses are some of the most adaptable in the country, according to new research.
Since the economic gut-punch of Covid-19, many businesses have expanded, agritech companies are attracting investment, and exporters are predicting a strong year ahead in 2022.
While 1651 Bay businesses have disappeared off the New Zealand Companies Register in the past eight months, others had adapted to the new normal and are "thriving".
However, there are major concerns around the impact of Covid-related barriers affecting how businesses operate.
The 2degrees Shaping Business Study revealed 79 per cent of Bay businesses reported being able to operate in either some or full capacity during the lockdown. That compared to 77 per cent of businesses surveyed nationwide.
The data also showed 19 per cent of Bay businesses were more likely to be considered as "thriving" before the August 2021 lockdown.
Andrew Fairgray, chief business officer at 2degrees, said economic reports had shown the Bay was one of the strongest-performing regions.
"Therefore, there is an embedded history of being able to adapt and modify what they are doing, but they are also leveraging from a starting point of strength so it's great to see during Covid-19 they have continued to do that.
"They really are a great example of New Zealand and the potential that regions have."
Fairgray said the Bay's optimism likely comes from having the cash flow to support their business.
The study showed 35 per cent of businesses said cash flow would help businesses to thrive, while 37 per cent said it was more time.
Fairgray said there was plenty of construction and development happening across the region.
"There's a large dairy component across the region, and we've seen how much in demand our horticulture is relative to the rest of the world."
Horticulture and dairy had faced challenges in attracting employees due to closed borders.
"Optimism in these areas will ultimately come from being able to fund business activities through to the end of lockdowns."
The study also showed the region continued its optimism past the August 2021 lockdown, with 30 per cent remaining positive compared to 26 per cent nationally.
However, 25 per cent of Bay businesses said they did not have the digital skills to help their business.
"We are transitioning into a digital economy and businesses need to invest in it and we need to support businesses to have these digital skills."
National law firm Tompkins Wake has grown its business in the region by more than 30 per cent and its chief executive Jon Calder says he expects that trend to continue.
Calder said the lifestyle attraction driving population growth in Rotorua had been the impetus for Tompkins Wake's business growth in the past three years.
"The transactions and business generated by people migrating for the first time or returning to Rotorua, in addition to our existing client base, have seen our business in the region grow by more than 30 per cent, and there is no sign of it slowing down.
"We've seen a trend in people making a lifestyle choice to move to Rotorua because they perceive it as being a great place to live, raise a family and work, even remotely."
Calder said, pre-lockdown, the law firm had seen many people setting up small to medium-sized businesses in Rotorua, which has created opportunities for it to support them.
Rotorua tourism business Secret Spot Hot Tubs has also found success and growth despite the sector being hit hard by international border closures.
Opening just months before the first lockdown, Secret Spot has doubled its staff and has reported being significantly ahead of its original pre-Covid forecasts for guest visitation.
Secret Spot co-founder Keith Kolver believed his company's growth and success can be pinned to their willingness to factor uncertainty into their business model.
"We were able to completely reshuffle our plans that heavily relied upon international visitors and focus more closely on what Kiwis want when they visit Rotorua."
The business aligned itself with Rotorua's mountain biking community and put the finishing touches on their latest project "BaseCamp" - a 70-seater safari-tent-style function venue.
"By aligning Secret Spot with this community, we've been able to grow alongside the sport."
Meanwhile, AgriTechNZ chief executive Brendan O'Connell said New Zealand agritech companies were attracting millions of dollars of investment.
O'Connell said the industry was seeing remarkable progress in new global partnerships, collaborations, investments and team growth, proving Covid was not stopping significant business activity.
It feels like fertile ground for a burst of growth in 2022 and beyond, he said.
O'Connell said global agritech business Bluelab, based in Tauranga, had brought on new shareholders Pioneer Capital and New Zealand Superannuation Fund to fund further growth of their business.
"Also, New Zealand electric utility bike company UBCO are seeking interest in their series B round through Snowball Effect.
"Already strong globally, they are looking to accelerate their sales growth strategies through both direct to consumer and business to business models."
O'Connell said Tauranga's Trimax Mowing Systems has notched up 40 years in business, also proving agritech success isn't limited to startups.
Trimax is operating globally and is investigating emerging technologies with the aim to make even smarter and more responsive systems, he said.
The firm has manufacturing, assembly and warehousing facilities in New Zealand, Australia, the United Kingdom and the United States.
The 2021 ExportNZ-DHL Export Barometer also found Kiwi exporters remained confident and optimistic about their survival through the pandemic.
Key findings showed 46 per cent of Kiwi exporters have developed new products/services, 62 per cent expect international orders to increase, indicating a strong year ahead in 2022.
But 78 per cent cited increased costs and the unpredictability of transport options as the main barriers to exporting and 51 per cent struggled to get in front of customers or find the talent they need with closed border and MIQ restrictions.
Catherine Beard, executive director of ExportNZ, said Kiwi exporters were working hard to maintain their indispensable relationship with the global exporting industry.
"Businesses are increasingly concerned that while the rest of the world is getting back to business, NZ exporters risk losing business to competitors and/or gaining a reputation of being unreliable, expensive, and potentially slow to deliver.
"While it is positive to see ingenuity from Kiwi exporters and the increasing value of greater investment in research and development, it may still take time for these changes to pay off."
Sixteen aspiring entrepreneurs have been welcomed into the inaugural cohort.