Help at hand for small business

By ELLEN READ

Lachlan McKenzie has got a new job fighting crime.

The crime? The number of small businesses that fail within the first two years.

As one of nine people named yesterday to the Government's long-awaited small business advisory group, the Rotorua farmer wants to reduce that rate of failure.

One of the main reasons for premature business failures, in his view, is the complexity of the tax system - and that will become one of his targets.

McKenzie also hopes to use his position to reduce compliance costs for small businesses, to see entrepreneurs are better informed about legislation and to decipher the riddle that is the Resource Management Act.

"There are so many legislative changes about things small businesses don't even know exist until they find out they're not complying and wind up in court," he says.

The opportunity for owners of small businesses to have a greater input in policy decisions is something he welcomes.

"Small business owners are usually too busy running their companies to spend time lobbying the Government or writing submissions," he said. "Their views are under-represented in legislation and it often has a bigger impact on them."

McKenzie's motivation for joining the group is to improve the country's economic performance.

"If we want to prosper as a country we have to have profitable and prosperous small businesses because they are the drivers of the economy."

Another member of the group, Alison Quesnel, is keen to try to do something about the availability of finance to small businesses.

The country manager for health products firm Blackmores, Quesnel says it is extremely difficult for small business owners to approach banks for finance.

She believes the Government should work with banks to help them be more flexible and accommodating.

A former chief executive of the business mentor programme Business in the Community, Quesnel believes coaching and mentoring are also important.

She also wants to help small businesses in finding and retaining skilled staff.

Membership of the group - for which 240 nominations were received - was announced yesterday by Small Business Minister John Tamihere.

He said the members came from a range of sectors and regions but all had hands-on experience in small business.

They have been appointed for terms of 18 months to two years, starting from today.

The advisory group members

* Peter Kitchen, Kaitaia, tourism business owner.

* Nigel McKinlay, Dunedin, footwear manufacturing business owner.

* Alison Quesnel, Auckland, CEO health products firm, marketing, business mentor.

* Lachlan McKenzie, Rotorua, farmer, small business owner.

* Denise L'Estrange-Corbet, Auckland, fashion design and retail business owner.

* Murray Cleverley, Timaru, Economic Development Agency chief executive, meat processing business owner.

* Cameron Moore, Christchurch, businessman, immediate past president of the Canterbury Manufacturers Association.

* Stuart Wilson, Wellington, IT business owner.

* Robyn Reid, Nelson, aviation business owner.