The power of New Zealand business as an engine for economic growth lies mainly in mid-sized businesses. These are under-recognised by many for the power they wield.
Grant Thornton has done a study of the sector which has some interesting findings.
- Mid-sized firms are growing faster than large or small (absolute numbers).
- Most are mature, in B2B industries
- Job growth is much higher than in other corporations (large or small)
- They suffer low productivity
- Capital investment is low (obvs as GT specialises in this type of consultancy)
- Suffer low international / export aspirations
- Few get >10% of orders via online sources and most under-utilise digital opportunities
5 solutions for future growth
The recommendations made by GT are rather bland, probably reflecting the diversity of business types in the group and the fact that they want to be paid for custom recommendations.
Here’s what I would add as ways to get your own business started on its future path.
- Bring on short-term contractors to assess opportunities and report to the Board
- Add Board Members with specific expertise on a short term basis to guide the Board [and then leave] e.g. cyber-security, digital marketing, B2B procurement online
- Budget for pilot projects [and be prepared to walk away]
- Hire newly migrated kiwis who can bring overseas experience [leverage them for knowledge, implementation and then don’t worry if they leave]
- New Zealand experience in employees is over-rated. Find people NOT like your current team. Use them to show you overseas methods / techniques / tools and input to 1 above.