Source: BusinessNZ
BusinessNZ says National's Small Business Plan contains a number of practical measures aimed at addressing the day-to-day compliance, regulatory and administrative pressures that businesses say make it harder to grow, invest and employ.
BusinessNZ Chief Executive Katherine Rich said one of the most exciting aspects of the package was National's proposed Next 200 programme, which would provide intensive support for 200 high-potential small and medium-sized businesses that are ready to begin exporting or expand significantly into international markets. Under the proposal, participating firms would receive dedicated NZTE relationship management, tailored market intelligence, overseas introductions and assistance navigating regulatory and customs requirements.
“The Next 200 programme recognises that New Zealand needs more firms to make the leap from successful domestic businesses to substantial international exporters.
“Those businesses create skilled jobs, attract investment, lift productivity and strengthen local economies. Helping more firms make that transition is one of the most effective ways to improve New Zealand's long-term economic performance.
“What stands out about this package is that it is a thoughtful document. It shows National has spent time listening to businesses and carefully considering the practical obstacles that make it harder for firms to grow, invest and employ.
“Small businesses rarely identify a single issue that determines whether they succeed or struggle. More often, it is the cumulative effect of compliance requirements, employment processes, regulatory obligations, reporting requirements and administrative costs. That means small changes matter, and a series of practical improvements can together make a meaningful difference to the ease of doing business.”
Ms Rich also welcomed the fact that support for small business had become a major focus across the election campaign.
“This is becoming the small-business election. We've now seen substantial small-business-focused policies announced by National, Labour and New Zealand First, whether that's Labour's proposal to raise the GST registration threshold, New Zealand First's proposal for a lower SME tax rate, or National's focus on reducing compliance and regulatory costs.
“That's encouraging because small businesses remain the backbone of the New Zealand economy and their success matters to every community and region.”
BusinessNZ's recently released Deloitte and Chapman Tripp Election Survey provides a useful benchmark against which to assess such proposals.
The survey found that 47.1 per cent of respondents believed regulatory changes had increased the cost of doing business, while 37.6 per cent reported increasing tax compliance costs over the past three years. Economic performance was overwhelmingly identified as the most important issue for achieving sustained growth, while more than half of respondents reported difficulties dealing with unsatisfactory employee performance.
“While our survey sample this year was weighted more heavily towards larger businesses than is normally the case, many of the frustrations identified are familiar to small business owners as well.
“In fact, compliance pressures are often felt more acutely by smaller firms because they don't have dedicated HR, legal, compliance or finance teams. The owner is frequently the manager, accountant, HR adviser and frontline salesperson all at once.”
One area where National's package aligns closely with both BusinessNZ's election priorities and business concerns is employment relations.
“Our survey found that 57.4 per cent of respondents had experienced difficulty terminating an unsatisfactory employee. That's not a call for weaker workplace protections. It is a sign that many businesses find existing processes difficult, costly and time-consuming.”
“Proposals to establish a faster Employment Relations Authority process for straightforward matters and to introduce greater standards and accountability for employment advocates are designed to improve certainty and reduce unnecessary cost for both employers and employees.”
The review of the GST registration threshold is another example of a policy change that could have a practical impact for smaller operators.
“Thresholds matter because they influence behaviour. Small business owners regularly tell us that compliance obligations can affect decisions about taking on additional work, expanding turnover or hiring staff.
“That's why BusinessNZ has called for a systematic review of material thresholds across the regulatory and tax system, including the GST threshold.”
National's proposal to rewrite health and safety guidance in plain English also addresses a long-standing concern raised by many smaller businesses.
“Most business owners want to comply with health and safety requirements. The challenge is often understanding exactly what is expected in practice.
“Clearer guidance, practical examples and proportionate regulation can improve compliance outcomes while reducing confusion and administrative cost, particularly for smaller businesses without specialist advisers.”
Technology and productivity are another area where the package responds to emerging business needs.
The Deloitte and Chapman Tripp Election Survey found that 58.5 per cent of businesses expect artificial intelligence and automation to significantly affect the size or composition of their workforce over the next decade.
Ms Rich welcomed National's continued focus on helping businesses adopt artificial intelligence and productivity-enhancing technology.
“One of the clearest messages from our survey is that businesses can see AI is going to change the way they operate. More than half expect AI and automation to have a significant impact on their workforce over the next five to 10 years.
“For many small firms, the challenge isn't enthusiasm. It's finding the time, expertise and confidence to understand where these tools can genuinely improve productivity.
“We welcome National's commitment to expanding AI support, including the AI Advisory Pilot, and its recognition that smaller firms need practical help if they are to capture the benefits these technologies can provide.”
BusinessNZ also noted strong alignment between National's package and a number of priorities advanced through its Election Priorities programme, particularly reviewing the GST registration threshold, progressing alcohol licensing reform, improving market access for exporters, removing non-tariff barriers to trade and continuing planning and resource management reform.
It was encouraging that so many of these ideas were now being picked up, Ms Rich said.
“The consistent message we hear from businesses is that they want a simpler, more predictable operating environment that makes it easier to invest, hire, innovate and grow.
“The question voters and business owners should ask of every party's proposals is straightforward: will these policies reduce costs, improve certainty and lift productivity? That is ultimately the test that matters.”
The BusinessNZ Network including BusinessNZ, EMA, Business Central and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
