National’s SME policy

The New Zealand National Party manifesto just published with some pledges to help the small business sector. We know we are important to the economy – but this really shows clarity of purpose and thinking, which I disagree with.

Read the full document

Get people back to work

Kiwisaver by New Zealand Government

One of their proposals is to provide New Zealanders who have lost their job with up to $30,000 in capital to put towards a new business idea through a BusinessStart package. Sounds good.

But won’t this be focused on people who may not be right for self-employment or business ownership? Where’s the filter?

The proposal states $1,000 for getting a business plan together…. but I think the Business Start package is going to create a raft of new revenue streams for accountants (who are not business advisors) writing those business plans. Just like the gravy train of Regional Business Partner advisors [disclosure I’m one of them].

Fund through Kiwisaver

A second layer of the programme allows folks to use their savings to fund the new business. Accessing Kiwisaver money to start a business should be contingent on there being an age sliding scale of kiwisaver deposits – this could let people spend their pension on a business which won’t fly and will leave them worse off at retirement…. And then who’s responsible?

The third layer is $10k of tax credits once profitable. This is interesting but may postpone business failure – but is a low risk strategy from a Government.

Lastly they want the fund managers of Kiwisaver funds to invest as if they were angel investors. Kiwisaver providers are not experts in private equity – so don’t let them invest their funds into areas they know little about (well – really they are OUR funds as it’s OUR savings).  I worry about this because it puts retirement savings at risk for folks like me whose savings go into other people’s businesses.

What do you think?