NZ Small business still need support

5 September 2017

NZ Small business may be backbone of the economy but they still need support

Take a snapshot of small to medium sized enterprises (SMEs) in New Zealand and the headline figures are pretty impressive. A huge 97% of enterprises have less than 20 employees yet they employ in excess of 614,000 people. Annual revenue for this size company averages $846,574 and they generate a staggering 28% of NZ GDP[1].

But behind the success stories, who supports and cultivates these businesses and helps them to navigate the critical early years?

Canstar general manager Jose George explains:
“According to the World Bank, New Zealand is in the enviable position of being the best place in the world to start a business so it’s no surprise that we have record numbers of start-ups and small businesses. Unfortunately nearly 50% of SMEs struggle to survive beyond their first five years.

“In some cases, the entrepreneur may not be prepared for, or have the knowledge required to take care of the day-to-day running of the business, operating regulations or financial requirements. In addition, they need to exercise agility to drive or respond to a changing marketplace. These skills are paramount to survival and must be developed as a core part of the business’s strategy. It is therefore pleasing to see that, with increasing frequency, it’s our high street banks who are offering this holistic support.”

What is on offer to SMEs?
Canstar conducts an annual research and review exercise to establish the level of information, financial support and banking services that are available to SMEs from banks in New Zealand. Research is based, and institutions are judged, on the following factors:

· Available products
· Business banking facilities (inc ATMs, SmartATMs, branches)
· Relationship managers and support services
· Online banking services and advice
· Business insights and education

“If banks operate a rigid structure, SMEs cannot be nimble and flexible” continues George. “Funds, account information and advice need to be accessible when the business owner needs it. The days of making an appointment weeks’ in advance to discuss business plans with the bank manager are long gone. In today’s world, the speed at which a business needs to operate is breathtaking and banks have had to respond to that.”

Fintech – Bridging the gap
Offering speed, agility and smarter use of technology, Fintech continues to develop and threaten disruption of financial service models globally. In response, we have seen the large financial institutions act in equal measure – streamlining their processes, investing in new technology and re-focusing on delivering solutions to meet changing customer needs. In New Zealand, while the Fintech industry is still in its fledgling stage, incumbent banks have been monitoring global trends and have been looking to incorporate these into their offerings either on their own or by partnering with local Fintech providers.

George comments:
“Without doubt the Fintech industry has had, and will continue to be, a huge influence on what customers expect, and what banks can provide. Banks are recognising this and realise that continuing financial and technical innovation is not only the key to New Zealand’s banking system, but to the viability of our SMEs in both a domestic and global marketplace.”

Canstar Bank of the Year – Small Business
With ‘customer first’ and ‘making it easier’ at the heart of their SME offering, ANZ has been named Canstar Bank of the Year, Small Business, 2017.

ANZ recognises that small business owners are time poor so digital banking, a SmartATM network covering 80% of branches and a dedicated contact centre available for customers to contact a business specialist at any time, have been established.

Accepting the Award, ANZ Managing Director Retail & Business Banking, Antonia Watson said:
“When our SME community is doing well, New Zealand is doing well. ANZ wants to be the bank that helps businesses start-up, thrive and grow. We have an unrivalled network of regional specialists who know our customers and the issues they face. Under our mantra of ‘easier everyday’ we are continually developing the services and features we can offer our business customers and I am delighted that the ongoing hard work of so many of the ANZ team has been recognised with this Canstar award.”

For further information, please visit the Canstar website.

[1] Statistics New Zealand Business Demography Feb 2016

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