Businesses Must Adapt To A Changing Political Climate
Living In A Changing Political Climate: Businesses Must Adapt
Any change in Govt brings new threats and opportunities for businesses of all types. The Labour-led Govt will not leave it to the market to solve problems, if it perceives it to be moving too slowly or not in the right direction.
As reported in trans-Tasman’s sister publication, The Main Report Business Alert, the interventions will not follow the same pattern as those made by National. The new Govt has given no signs it is “anti-business,” but it will probably take fewer of its cues from the business lobby.
This will mean businesses will have to be swift and nimble, able to ride through the changes and take advantage.
Some costs will rise. Auckland Chamber of Commerce CEO Michael Barnett says raising the minimum wage and levying a regional fuel tax for Auckland will impact SMEs, but the news is not all bad. “The instinctive response is prices will have to increase. They may do – but SMEs need to look closely at how they can mitigate the new costs. They need to be thinking about things like technology, innovation and reviewing productivity.”
Barnett is urging SMEs to start planning immediately. “Small businesses need to be having conversations now about how they can adapt to meet these challenges. They need to realise that their staff too will face change with the fuel tax increasing the cost of getting to work, so staff need to be part of the conversations and the planning.”
The impulse reaction to lift prices may be short-sighted – not only is this inflationary, it will also make local prices look even higher when compared with goods accessible via the internet. Businesses must think smart – lift productivity, innovate, curb costs, and look for chances the new administration will present for forward-thinkers.
Barnett says businesses should not be too gloomy and there is some potential good news for SMEs in comments from PM Jacinda Ardern about the Govt’s upcoming tax review.
He says “the Prime Minister has said she would like to see the tax review look at examples from other countries where they tax SMEs at a lower rate than large corporates. So, our businesses need to keep that in mind and realise things might not be as severe as they think.”
Trans Tasman’s sister publication, The Main Report Business Alert, is a weekly source of new ideas, trends and forecast for executives wanting to supercharge their businesses and careers.