New Zealand's strength in the dairy industry could prove to be a curse for Kiwi start-ups trying to grow a global business outside of the industry, an entrepreneurial expert has warned.
Ken Morse, head of the MIT Entrepreneurship Centre, based in Boston, Massachusetts, says his biggest worry about New Zealandis that it is too dependent on "white gold".
"New Zealand is at risk of having the oil curse. Countries that pump a lot of oil have rich coffers, a bloated Government and high exchange rates.
"It makes it difficult for those outside of the oil industry to build successful global businesses and they tend to become complacent. I don't know if white gold isn't going to be New Zealand's oil curse."
Morse who was in Auckland last week on his 17th visit to New Zealand said New Zealand entrepreneurs already faced a tough ride to go global.
"Even when it's just two people in a garage they have to begin thinking about going global because it won't be long before they have sold to everybody at home."
Morse said New Zealand companies had to go overseas at a much earlier stage than businesses in other countries to achieve their full potential.
So why do so few New Zealand companies make it big overseas?
"I think one problem is only a few Kiwis are really willing to travel 100 days a year, one reason is life is too nice here, another might be lack of ambition.
"The flip side is those who do go out and try and get business do well. Kiwis are welcome in Europe and North America." In the eight years he has been coming to New Zealand Morse has seen support systems improve. Almost 500 people have attended his workshops during that time.
Morse believes there are areas where New Zealand start-ups could do better.
"I would like to see start-up companies with larger management teams because sooner or later the founder is going to have to live in the largest market."
He also believes more companies would benefit from coaching and mentoring. "To be successful entrepreneurs needs to have rough-and-tumble sales skills, a global perspective and a burning ambition."
