Maori building 'human capital'

Statistically, Maori are the most entrepreneurial ethnic group in New Zealand.

Gem asserts that, historically, Maori are an entrepreneurial people and that they have "played an important role in the history and evolution of New Zealand entrepreneurship".

The report says: "By the time of the Maori wars of the 1860s, Maori had become successful entrepreneurs and controlled a large share of the commerce throughout the country. Maori were involved with export of produce to Australia and elsewhere."

Eighty-six per cent of Maori now live in an urban environment. "Though many urban Maori maintain close links with their kin who live on ancestral land, for some, the tribal connections have been loosened by modern life."

Gem finds this has had an adverse effect on the relationship between kaumatua and kuia (elders) and young Maori.

"Given the evolutionary change of industry, some elders could feel 'out of touch' in today's world of technology and change," Gem says.

"Equally, outside of tribal contexts, members of the younger generation may have little respect for their elders because they perceive that they are unable to contribute to the modern world."

This illustrates difficulties caused by traditional community enterprise, led by elders conflicting with young urban Maori entrepreneurship.

Another finding is that Maori entrepreneurs are skilled at building "human capital".

Often Maori create businesses that employ and upskill their community, rather than businesses that create wealth.

The report adds: "A return on the balance sheet has to be reflected on how Maori build human capital, as well as how they accumulate wealth."

Another positive aspect of Maori culture that features in the report is the existence of extensive communication networks.

Gem says this may have significant positive benefits to Maori entrepreneurship, as "they live in a culture that disseminates knowledge through networks as well as through formal learning. 'Know-who' is as important for entrepreneurs as know-how".

The report is generally positive in its findings on Maori entrepreneurship. But areas that create barriers to such activities are also highlighted. These are skill development and a resistance to wealth creation.

"Maori may have great ideas, but need to extend that thinking to appreciate markets and competition," the report says.

"They need assistance to develop business skills and greater understanding of how the infrastructure is put together."

Gem goes on to say that "cultural attitudes towards failure, risk, and growth are unhelpful".

Over half of respondents to the survey commented on Maori entrepreneurship. But the report recognises that Maori "did not have the benefit of extensive quantitative data that we have on other entrepreneurial framework conditions".

In the report, much of the insight into Maori entrepreneurs was provided by the key informants. Nine of the 40 key informants were Maori.

GEM Special Report