Sarah Marshall Photography, Emily Henderson MP, Aorangi Hetaraka Youth MP and Jude Thompson from Northland Inc
Sarah Marshall Photography, Emily Henderson MP, Aorangi Hetaraka Youth MP and Jude Thompson from Northland Inc
OPINION
Forty-odd years ago, my mum and dad brought us North to start their own business, a tiny firm tucked into the end of Mansfield Terrace. Over the years, I've been everything from the firm's cleaner (badly) to decorator (worse), to receptionist to senior solicitor. The firm grew alongside meand my brothers and sisters, and while it isn't small anymore, that pride, the deep sense of responsibility and that drive to ensure it endures, all remain strong.
There are over 10,000 businesses registered in Whangārei, employing almost 43,000 people. More than 90 per cent of those businesses are "small", and when I talk to their owners I hear the same emotions that my family feels for "our" firm.
After Delta hit last July, I began running Zoom meetings for local business leaders, initially to give information on the available business supports and latest medical advice, but our meet-ups quickly morphed into more: the sharing of worries and strategies for supporting staff. It reminded me that good businesses are communities, and good business owners are community leaders, holding together a complex web of interdependent relationships.
Small businesses are the backbone – and the ribs, arms and legs – of our town. For that reason we collaborated with NorthChamber to bring business owners together, to learn more about the several initiatives in this year's budget to support and grow small businesses, while hearing from one of Whangārei's home-grown leading economists, Brad Olsen.
The Business Growth Fund is a new $100 million initiative based on successful models in the UK, Canada and Australia, providing finance to grow small- and medium-sized businesses which generally strike out with traditional lenders.
Economist Brad Olsen and Emily Henderson at the NorthChamber event
The Government will take a minority shareholding in a privately operated and independently managed fund, investing alongside banks, always staying a minority investor, offering guidance and expertise but always leaving owners in control. This builds on our successful Small Business Cashflow scheme, which I know from talking to people around town continues to be a great help.
Another relevant initiative for Whangārei is the $54.2 million Innovation Programme for Tourism Recovery, prioritising innovative low-emissions projects to support tourism businesses to become more sustainable. The $200 million Kanoa Regional Economic Development Fund is also still looking for great new economic projects in the regions, including here.
We are all being rocked by continuing global shocks and inflationary pressures, but it's worth remembering that the basics of the economy are still strong.
While the economic impact of Covid-19 was far deeper than in 2008's GFC, the economy has been resilient, with much economic activity ahead of pre-pandemic levels and unemployment at a record low of 3.2 per cent, against expectations when Covid hit that it could rise as high as 10 per cent.
Meanwhile, our debt is set to peak at about half of Australia's, around a third of that in the UK and around a fifth of the US. We're forecast to return to surplus in 2025, five years after Covid hit, and a year earlier than the previous government managed after the GFC.
Brad Olsen's presentation at the NorthChamber event for the business community
Being a small business owner is hard work, but we were there to keep the community afloat during Covid, and we're here now to help with the recovery.
If any of the funds I've described above sound like you, contact MBIE or Northland Inc, or drop me a line. We are holding a business Zoom meeting next week, and any Whangārei business is welcome to join.
