BDO Māori Business Sector Report 2024

89% of Māori business leaders say it is important to collaborate and partner with others when it comes to achieving their business goals, according to the sixth edition of BDO Pūrongo Pakihi Māori, the BDO Māori Business Sector Report. Meanwhile, a record low 48% of Māori business leaders feel positive about their current overall business performance - suggesting a key opportunity for Māori business leaders to further collaborate in navigating current economic challenges.

The report, entitled ‘Kaha Ake Tātou Kotahi - Stronger Together’ is based on a nationwide survey – the largest of its kind – featuring responses from more than 150 Māori business leaders during September 2024. It reveals that Māori business leaders are being challenged by New Zealand’s current business conditions, especially economic pressures.

Collaboration and partnering to address skills shortages

“When times are tough, we see more people collaborating - working together to meet common outcomes. Where there are skills shortages across pakihi Māori, collaboration is a great way for organisations to share some of their mātauranga (knowledge) and skill sets they have in their own organisations with others. We are stronger together and collaborating and partnering with others can help us achieve more.” - Angela Edwards, BDO Māori Business Sector Leader

The specific skills that Māori business leaders say are most lacking in their organisations include creativity (31%) and experience (31%). This makes collaborating and partnering even more important to bring in new skills – along with a continued focus on training and upskilling existing staff.

Business performance sentiment declines as economic pressures continue

48% of Māori business leaders feel positive about their overall business performance, which is the lowest business performance score for Māori business leaders since BDO started measuring this in May 2022. Looking at key drivers, the five business performance metrics (among 17 surveyed) which Māori business leaders feel least positive about include: economic factors, cash flow, political factors, financial performance, and workload.

“The economic climate and cost of living crunch are putting pressure on businesses all over the motu, and Māori business leaders are not exempt from this. And while Māori business leaders tend to be more comfortable working toward long-term visions and goals, the current climate is forcing them to focus more on short-term financial and performance benchmarks to make ends meet.” - Angela Edwards, BDO Māori Business Sector Leader

People and purpose take precedence for Māori business leaders

Māori business leaders continue to place a strong emphasis on people and purpose.

When asked how they measure success for their business or organisation, 61% of survey respondents said it was by having a happy and well whānau – even more important than financial performance (60%) and having an engaged team (50%).

Meanwhile, 39% of Māori business leaders consider the primary purpose of their business to be a combination of purpose (cultural, social, and environmental) and profit (asset growth). A further 24% consider their primary business purpose to be purpose alone, followed by employment at 19%, and profit at 18%.

“For Māori business leaders, it’s not just about profit – it’s about kaupapa, making an impact on your community, and making mokopuna decisions. Our business whānau are often more interested in leaving a lasting legacy, not just making pūtea (money).” – Solomon Dalton, BDO Māori Business Advisory Partner

Wellbeing impacted by financial concerns

Māori business leaders are experiencing lower levels of wellbeing than in recent years. The BDO Māori Business Sector Report shows the WHO-5 score (the World Health Organisation's measure of wellbeing over the past two weeks) for Māori business leaders has declined to 64, one of its lowest measures since BDO first started tracking this metric in 2022.

The leading cause of negative wellbeing for Māori business leaders is business financial challenges, with 67% of business leaders who have been feeling less mentally healthy than usual saying business financial performance and cash flow problems are driving this. Additionally, 55% say that feeling like they don’t have enough people to rely on for support is negatively impacting their mental health. Positively, many Māori business leaders are taking action to stay mentally healthy, including socialising with friends and family and adopting flexible work practices.

“There are several factors that are contributing to the decline in Māori business leaders’ wellbeing we’re seeing in our survey, the first being business financial performance. What’s perhaps even more concerning is that these leaders are feeling like they don’t have enough people to rely on for support. It’s so important for our business whānau to stay connected and lean on each other when times are tough” – Solomon Dalton, BDO Māori Business Advisory Partner

BDO New Zealand Māori Business Sector Report 2024: https://www.bdo.nz/en-nz/microsites/bdo-maori-business-sector-report-2024

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