While the Government’s efforts to balance the cost-of-living crisis are commendable, William Buck believes more can be done to alleviate the pressures faced by small and medium enterprises (SMEs) – the backbone of New Zealand’s economy.
Jayesh Kumar, Head of Tax at leading accounting and advisory firm William Buck New Zealand, said the country’s SMEs are up against an unprecedented number of challenges as they grapple with the repercussions of a global recession and the lingering effects of the COVID-19 pandemic. These include a lack of access to finance, economic uncertainty, skills shortages and an increasing regulatory burden.
“Managing the cost-of-living crisis for individuals is critical, but we urge the government to understand that so too is fostering a thriving business environment,” said Mr Kumar.
Small and medium-sized businesses account for 97% of all businesses in New Zealand, employing over 679,000 individuals and contributing more than a quarter to our gross domestic product, according to the New Zealand Ministry of Foreign Affairs and Trade.
As these businesses struggle to cope with the current recession, Mr Kumar said the government needs to allocate resources to SMEs and introduce policies that directly address the barriers to growth and sustainability for these businesses.
“A reintroduction of initiatives like low-interest loans and grants similar to the Business Finance Grant Scheme, which was concluded on 30 June 2021, could prove to be a lifeline for businesses in these challenging times,” said Mr Kumar.
“Additionally, bolstering venture capital initiatives, expanding apprenticeship and internship opportunities and simplifying regulatory processes could all help nurture business growth.”
The introduction of these policies would be an investment in the future of our businesses, creating a conducive environment for SMEs to thrive while also helping New Zealand’s economy take a positive step forward.
