MP Stuart Nash, Minister of Police. Photo / File
Our message to small businesses is simple: we have got your back.
We had a major announcement in Napier this week. It was a way of keeping up the momentum of government support for small businesses in Hawke's Bay, and around the country.
An extra $40 million is going to a specialised regional business advice service. The Regional Business Partners scheme in this region is run out of the Hawke's Bay Chamber of Commerce.
The funding helps small businesses adapt and innovate to deal with the impact of Covid-19. Support is delivered via vouchers worth up to $5000 for professional advisory services.
The Regional Business Partners connect firms to expert advice at no cost to the business. It offers a fast and localised way to get practical support to business, especially the small and medium firms that are the backbone of the economy.
Specialist advice covers topics like business strategy and planning, finance and cash flow, how to ensure continuity in the face of external disruption, HR and employment relations, digital services, marketing, and health and wellness for owners and staff.
The professional support is in huge demand from our smallest businesses, those with 10 or fewer staff. This is the same cohort of SMEs who have been most enthusiastic about other government support like interest-free loans and the wage subsidy.
Around 60 per cent of businesses who have used the RBP Network for professional support are firms with five or fewer staff. Around 80 per cent have 10 or fewer workers. There's strong interest from manufacturing, tourism, construction, and retail businesses.
More than 620 Hawke's Bay businesses have participated in the online training webinars and 359 businesses have used the voucher system for advice tailored to their business. A further 45 have registered for RBP Network for support and thanks to the extra funding, they will now be able to get it.
In our region, small businesses reported cash flow was a big point of pain at the start. That's where the wage subsidy kicked in. Then as the economy opened up they wanted advice about how to take their products online, and sell goods and services over the internet.
One thing we know about Covid, no matter how good a business person you were, you just can't plan for that level of uncertainty.
There are two ways we could have done things - we could have shut up shop and gone down the austerity route or we could have said 'Hey, we've got the biggest chequebook in the country, we need to ensure our businesses survive'. We have chosen the latter course.
As local Napier business owners Paul and Sharron said at the announcement – the new business support was 'lifesaving'. It meant an end to anxiety about losing their house or their livelihood.
We don't underestimate the struggle small businesses are facing at the moment, and the pressures they are under, be they financial or mental health. This is the time to leverage personal and business networks and use local contacts to help innovate and grow.
We now have one of the most open economies in the world but it remains a challenging time for businesses. We want more to get professional advice to help grow and innovate as our economy continues to open up.
The best way to keep up the momentum of economic recovery, retain jobs, and adapt to Covid-19 is if we all work together. The Regional Business Partners Network allows the Government and private sector to work in partnership to help our small firms. Let's keep moving.
Stuart Nash is the MP for Napier and Minister of Police