GEM Report: Waitakere City

Profiled as one of the "global bright children" of the New Zealand economy, Queensberry made-to-order photograph album distributors are a thriving example of entrepreneurial success in Waitakere City.

The GEM report suggested that few entrepreneurs in Waitakere were forced into business through lack of other job opportunities. Rather, they wanted to be there.

Queensberry is run by the Baugh family: Ian is the marketer, his wife Heather looks after design, daughter Adrienne handles production and finance, and son Stephen is the IT guru.

In seven years the family have increased sales six-fold using technology and advanced courier systems to market their products worldwide.

They make high-quality, made-to-order photograph albums for professional photographers.

Queensberry developed software that allows photographers to organise their images, display them to clients, make a sale and present clients with a virtual album before manufacture.

Although most of its small-business clients are half a world away, the company's goal is to be as easy to deal with as any local supplier.

"We're friendly, we speak English, we bill our clients in their own currency, clear shipments through customs for them and deliver promptly to their door," says Stephen Baugh.

"If we went to Trade New Zealand they would say, 'You should get a local distributor or set up a local base', but we have developed our own successful exporting model."

The Queensberry family took top honours at this year's Waitakere Enterprise Awards after winning the innovative business category last year.

But like any business, they have had problems.

Business promotion agency Enterprise Waitakere helped the Baughs to cut through red tape that had stymied their plans to expand their head office in a residential area.

Nicki Wicks, Enterprise Waitakere's project manager, negotiated with the city council's regulatory unit.

The company also received help with a student jobs programme.

With Queensberry planning to increase staffing from 45 to 200 within four years, the council's decision was pragmatic.

Waitakere - one of four local authority areas singled out for special attention in the GEM study - recorded 14.6 per cent overall entrepreneurial activity, marginally ahead of the New Zealand average.

The study found 84 per cent of New Zealanders mainly went into business to pursue an opportunity - they were not forced to because there were no jobs - but in Waitakere those taking an opportunity, such as the Baughs, totalled 93.5 per cent.

Waitakere entrepreneurs scored higher than the national average for providing what they perceived as new products or services. They had a focus on exports and believed their ventures had little competition, but just 10 per cent were using new technologies not available one or two years ago, compared with 15 per cent nationally.

Waitakere Mayor Bob Harvey says GEM confirms his own assessment of the city's entrepreneurial spirit, and the council wants to foster it more.

The council and Enterprise Waitakere have been active on branding initiatives such as Eco-city, with training and promoting cluster developments of small businesses that congregate around a key facility.

"This city is in love with clusters," says Harvey.

There has been controversy over plans for a Housing Corporation development at Hobsonville near a boatbuilding cluster.

Waitakere City has paid $3-4 million for studio facilities at the centre of a film and television cluster development. The city is also linking with Rodney to provide a cluster servicing organic farming.

GST-registered companies in the city increased from 7500 to 12,000 in eight years.

Enterprise Waitakere chief executive Clyde Roger says businesses are typically smaller than regions such as Manukau, which has a bigger manufacturing base.

The release of the GEM report coincided with the November 9 launch of WestSmart, a business incubator unit to support start-up businesses.

Waitakere City

Herald feature:
Global Entrepreneurship Monitor Report - 2002