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.
Get people back to work
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?