But global small business platform Xero says there is a widely accessible alternative for most small businesses seeking to raise output.
Xero New Zealand Country Manager Bridget Snelling says: "Kiwis aren't afraid of a bit of hard work, especially those in the self-made small business sector. But these sobering numbers make it clear we can't simply put our heads down and work our way to better productivity."
"Introducing new technology is a key way for most to work smarter, not harder. Aotearoa has a great opportunity to improve productivity through digitisation."
The new insights from the New Zealand Institute of Economic Research (NZIER) show New Zealanders already work for longer hours than people in most European countries, the UK, and Australia.
"Every day New Zealanders are working more than many of our international counterparts, with much less to show for it per hour," Snelling says.
The NZIER research shows the Irish are world leaders when it comes to GDP productivity per hour. For Aotearoa to match this output at current productivity rates, Kiwis would need to work an extra 10.7 hours per day, or 53.4 hours per week.
"For businesses, that would be equivalent to taking on one more employee for every five current employees," Snelling says.
Hiring more staff in the current tight labour market, however, is difficult for small businesses, and asking already hard-working staff to work longer hours is not sustainable, she says.
"Digitisation isn't the only answer to Aotearoa's productivity problems, but it's something self-made businesses across the country can immediately start looking into."
An easy first step, she says, is joining the Government's eInvoicing initiative, designed to make exchanging invoices and doing business more efficient.
The system works by enabling buyers' and suppliers' financial systems to work directly with each other without the need for emailed invoices.
Einvoicing reduces the chances of fraud and cyber-hacking, and enhances cash flow through quicker payments, Snelling says.
Small businesses looking to introduce einvoicing should register to receive invoices on the Peppol network or speak to their accountant, she says.
In addition to boosting business efficiency, einvoicing costs half the amount of a traditional invoice, and there are wider benefits for Aotearoa.
"With 280 million business-to-business invoices exchanged in New Zealand each year, the government estimates our economy could save $4.4 billion over the next 10 years, just with this one change to payment processes," Snelling says.
Xero and NZIER have also produced economic research showing a 20 percent increase in the uptake of cloud computing could increase Aotearoa's GDP by between $3.5 billion and $6.2 billion through labour savings and productivity improvements.
Aotearoa's small businesses are beginning to embrace the transition. More than 30,000 of Aotearoa's approximately 546,000 small businesses have participated in government-funded digital training in the two years to July 2022.
While the government has committed $44 million and set up the Digital Boost initiative to help small businesses get started on their digital path, further encouragement could be offered, Snelling says.
Xero is advocating for the Government to implement a scheme similar to comparable economies such as Australia and Singapore where SMEs can deduct a percentage of their investment in adopting digital technologies.
"We have massive productivity issues facing our small business economy. Kiwi small business owners should feel encouraged to consider their options and how they can become more flexible, productive, and profitable through technology," Snelling says.
"Digitisation is an incredibly important and necessary part of doing business."