BDO Māori Business Sector Report 2023

Māori business leaders focused on short term financial performance, collaborating less and finding it more difficult to successfully manage businesses – BDO Report

61% of Māori business leaders feel that it has become more difficult to successfully manage a business in the current market according to the fifth edition of BDO Pūrongo Pakihi Māori, the BDO Māori Business Sector Report. Only 8% state it has become easier.

A focus on short term financial and performance benchmarks

“What really stands out is that the majority (79%) of Māori business leaders are focused on planning for the near future (next 1-5 years)” – says Angela Edwards, BDO Māori Business Sector Leader. Edwards explains:

“This short-term focus is in contrast to what is perhaps a natural tendency for Māori business leaders to focus on intergenerational horizons – as highlighted in our previous reports. The change in focus is likely an impact of present economic challenges, along with disruption from recent flood events, which are driving Māori businesses, like many others, to give priority attention to their current business performance and short-term commercial objectives. Supporting this, 52% of respondents have placed more importance on financial performance over the past year.”

Business disruptors challenge ESG (Environmental, Social & Governance) progress and collaboration

Given this business focus, it is perhaps not surprising that only 9% of Māori business leaders stated that they have made significant progress in relation to ESG principles over the past 12 months - down from 27% in BDO’s previous Report in 2021. However, Edwards notes:

“We were surprised to see a declining percentage of Māori business leaders (49%) who believe that Māori businesses place a stronger emphasis on ESG than other New Zealand businesses – down from 78% in 2021. This may be attributed to a growing awareness of ESG responsibilities across the broader business sector, further appreciation of what these practically mean for businesses and potentially more businesses addressing the basics – such as measuring their carbon footprint.”

The 2023 report, entitled ‘Kaha Ake Tātou Kotahi| Stronger Together’, highlights that fewer Māori businesses are collaborating in addressing key challenges. One quarter of respondents are currently collaborating or partnering with other businesses to meet their own goals, down from 51% in 2021. Despite this, a further 39% are willing to do so – and Edwards believes more collaboration is vital for Māori businesses to succeed:

“Drawing on support from wider whānau – colleagues, mentors, family and business professionals – will always be vital for Māori businesses and the sector to be successful. The COVID-19 pandemic brought Māori organisations together for a shared purpose, serving our people and we need to maintain our strong community relationships to successfully navigate barriers; sharing learnings from our pasts for a better future together.”

Employment, training and wellbeing a key focus

An employee growth mindset is evident among business leaders. The significance of prior experience for a role is diminishing, while emphasis is growing on areas that foster employee growth in line with the evolving business landscape.

84% of Māori business leaders ranked self-motivation as the most important quality in employees, yet 34% rated this as the skill that is most often lacking.

The aspects of wellbeing rated by Māori business leaders as most important to support and develop the future Māori economy include; knowledge & skills (58%), cultural identity (55%) and job & pay (51%).

About the survey: The face of Māori business

Through this report, BDO aims to contribute to understanding of the Māori business sector and provide a voice from an audience that is not often researched, yet occupies a unique place in New Zealand’s business life. Most importantly, however, the focus is on sharing practical business tips to support Māori business leaders in navigating their current and most pressing barriers.

Findings of the 2023 BDO Māori Business Sector Report, are derived from an online survey conducted during July 2023 among more than 160 Māori business leaders across Aotearoa. All 2023 survey respondents identify with being Māori or a New Zealander of Māori descent, while also being responsible for leading or managing a business. In addition, 58% of respondents describe their business as being at least 50% Māori owned.

53% of respondents consider that they lead their business through a te ao Māori lens (in line with Māori cultural values). Most Māori businesses surveyed were established entities, with 47% having been in operation for 6 years or more.

Retail, construction, education and tourism & hospitality are the most commonly identified industry groups within which respondents operate. 66% employ 20 people or less, with only 12% employing over 200.

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