BDO Māori Business Sector Report 2021 Shows Increasing Confidence In Financial Planning To Boost Wellbeing

BDO has released the third edition of its annual Pūrongo Pakihi Māori - Māori Business Sector Report 2021. 'Whakatere Nga Rerenga Hou’ (Charting a New Course) provides valuable insights shared by Māori businesses in Aotearoa about their current priorities, business confidence and where they feel future opportunities lie – both at home and abroad.

This year’s survey saw an increase in focus on business finances alongside traditional emphasis on happy and healthy whānau and whenua – understanding that improving wellbeing for people and planet can only be achieved if the business itself is successful. This has led to a deepening understanding of financial planning – with two-thirds of respondents saying lockdowns have afforded an opportunity to increase knowledge in financial planning and outcomes.

Short-term planning to complement long-term goals

COVID-19 has also led to a tightening of focus on the shorter term to complement the long-term planning for the benefit of future generations that is traditional in Māori business – this is to be expected given that respondents completed the survey during the most recent lockdown. This year, 71% of respondents spoke of goals focused on the next 1 – 5 years, with 13% focusing on the next six to 30 years and 10% looking beyond 30 years.

“It’s great to see an increased focus on financial planning among our Māori business community – a silver lining in response to the short to mid-term business pressures brought about by COVID-19” says Angela Edwards, Māori Sector Lead at BDO in New Zealand. “Founded in their cultural traditions as navigators, Māori businesses are adept at looking towards the distant horizon, with a tendency to focus on holistic goals bringing long-term benefits for future generations. This year’s report highlights many are now charting a new course, which also brings into view the need to balance this with providing financial, social and environmental wellbeing in the present.”

“It was also really pleasing to see an overwhelming number of respondents considering their business to be environmentally sustainable. Māori businesses have natural strengths in ESG and can really lead in this area.”

Room for formal financial training and advice

The survey did indicate that there could be a greater role for formal financial training and advice, with 41% of respondents saying they had had to learn through experience.

COVID-19 of course dominated responses, alongside current difficulties in accessing talent (people, capability and capacity is considered the main barrier to achieving planned outcomes) and the importance of ESG values. Learn more here.

Key highlights include:

Success for the Māori business community

• When asked how they measure success, 34% of respondents said happy and well whānau. Second came financial performance (15%) and cultural wellbeing came third (14%).
• The most important goal to achieve in the next five years is a growing pipeline of work flowing into the business, followed by financial independence and improved profitability. The most important goals to achieve in the next 30 years are intergenerational wealth, followed by planning for retirement and a growing pipeline of work.
• When asked about barriers to achieving their goals, nearly half (42%) of respondents said people – capability and capacity was the biggest barrier for achieving planned outcomes. Funding came second (29%) and access to capital third (11%).

Confidence in the future

• Despite the pandemic, Māori business owners are confident in the future, with 96% saying they are confident of success in the next 12 months.
• Many Māori businesses say they are experiencing the benefits of good business planning, with business coaching ,better planning tools and improved recruitment processes all contributing to confidence in the future.
• Export hopes are slowly growing – one-third of respondents have ambitions to trade globally, up from 26% last year.
• COVID-19 has provided an opportunity to deepen understanding of financial planning and outcomes – 44% felt very confident in their financial planning abilities and a further 41% said they were above average. However 41% of respondents said they had had to learn through experience rather than formal training and advice and 41% said that they’d like to grow their financial acumen skills across their business.
• This year, 10% of respondents spoke of goals that go beyond 30 years, with 13% focusing on the next six to 30 years and the great majority (71%) looking at least one to five years ahead.

ESG targets

• The number of respondents saying they consider their business to be environmentally sustainable has jumped 9% to 88% - showing the importance and natural strengths of Māori businesses in ESG.
• Half of respondents do not currently report on ESG outcomes, although more than two-thirds say they would use a reporting tool if it was available.

About BDO

BDO offers a wide range of business and corporate advisory services to large corporate organisations, Government & Public Sector entities, private businesses, entrepreneurs, and individual clients across a wide range of industry sectors.

In New Zealand, BDO can offer the expertise of more than 90 partners, supported by over 850 staff. We are one of New Zealand’s largest networks of independently-owned accounting practices, with offices in Kerikeri, Whangarei, Auckland, Hamilton, Tauranga, Rotorua, Gisborne, New Plymouth, Napier, Palmerston North, Wellington, Christchurch and Invercargill.

Our service lines include: Audit & Assurance, Corporate Finance, Tax, Advisory, Forensic Services, Risk Advisory, Business Recovery & Insolvency, HR Services and Information Systems. We also focus on a range of industries and specialisations, including: Automotive, Agribusiness; Government & Public Sector, Healthcare, Not-for-Profit, Professional Services, Real Estate & Construction, Retail, Technology, Entertainment & Telecommunications; and Tourism, Sports & Leisure.

International BDO network

The global network has 1,600 offices in 162 countries and more than 73,000 people provide advisory services throughout the world.

Service provision within the international BDO network of independent member firms (‘the BDO network’) is coordinated by Brussels Worldwide Services BVBA, a limited liability company incorporated in Belgium with its statutory seat in Brussels. Each of BDO International Limited (the governing entity of the BDO network), Brussels Worldwide Services BVBA and the member firms is a separate legal entity and has no liability for another such entity’s acts or omissions. Nothing in the arrangements or rules of the BDO network shall constitute or imply an agency relationship or a partnership between BDO International Limited, Brussels Worldwide Services BVBA and/or the member firms of the BDO network.

BDO is the brand name for the BDO network and for each of the BDO member firms.

© Scoop Media