Kiwi firms more focused on local growth - report

Just 4 per cent of Kiwi businesses are seeking growth overseas compared with 38 per cent expanding locally. Photo / Thinkstock

Growth for New Zealand businesses is mainly limited to the local market with just 4 per cent of kiwi companies seeking to focus their expansion overseas, according to a new report.

Research from global workplace provider Regus which canvassed the opinions of more than 20,000 executives and business owners across 95 countries found that Kiwi businesses reported significantly low levels of overseas growth even compared to the reported global average of 17 per cent, and was dramatically lower than Australia whose overseas growth was reported at 15 per cent.

Regus New Zealand country manager Nick Bradshaw said there are a variety of key factors that are vital for the success of business expansion.

Hiring high-quality staff is the largest barrier to international growth for Kiwi firms with 66 per cent of respondents reporting this.

Regus NZ manager Nick Bradshaw

"...It comes as no surprise to find that quality staff, up-to-date market information, and the ability to network are at the top of the perceived barriers to international expansion," Bradshaw said.

Other obstacles to overseas growth:

• A lack of local knowledge and connections (64 per cent)

• A lack of market information (53 per cent)

• Limited access to flexible office space (40 per cent)

• Difficulties setting up a local distribution network (38 per cent)