Inconsistent Leadership Is Hurting Kiwi SME Success, Says SME Specialist

Rising costs, economic shifts, and political uncertainty mean New Zealand’s small business owners are starting 2025 already exhausted, but inconsistent leadership and poor planning across the board is how Kiwi SMEs make it even harder for themselves.

“Inconsistent behaviour yields inconsistent results,” says Gaelene Adams Love, managing director and business relationship coach at Team Fusion International. “Anecdotally, many are in constant reaction mode and struggling to get a grip on things.”

Adams Love says that when leadership, planning, and processes are inconsistent, it amplifies the external challenges Kiwi SME owners are already facing.

Cash flow continues to be a major issue. Fluctuating sales cycles, late payers and rising costs are contributing to many SMEs walking a financial tight rope.

Recent data from Xero shows SME sales fell 2.7% year-on-year in the September 2024 quarter, following a 1.4% decline in June. Over 31% of small businesses reduced staff in the past year.

“Without structured financial planning, these setbacks make it nearly impossible to grow. Many owners overestimate what they can do in a year and underestimate what they can achieve in five. Without a long-term plan, momentum disappears,” says Adams Love.

Inconsistent leadership

Many SME owners fail to set clear expectations, enforce accountability, or establish effective processes. A study found New Zealand’s manufacturing firms rank only mid-tier in management practices, with notable weaknesses in people management. This leads to inefficiency, high staff turnover, and stalled growth.

“If you don’t lead consistently, you create uncertainty within your own team. And that inconsistency ripples through every part of the business,” she says.

External pressures add another layer of difficulty. Government-mandated costs, such as paid domestic violence leave, minimum wage increases, and compliance requirements, strain SMEs financially. Political and economic uncertainty means business owners need to pull themselves out of reaction mode and plan better.

“If a policy change is coming, don’t just hope for the best—prepare for it,” says Adams Love. Strategic planning helps businesses anticipate challenges instead of being blindsided.

Despite these obstacles, SME owners can control one crucial factor: their own behaviour. By focusing on structured leadership, clear processes, and long-term planning, they can mitigate external disruptions.

“If you are the problem, that’s actually a good thing,” says Adams Love. “Because you also have the power to be the solution.”

Three ways SME owners can take back control:

1. Create a long-term plan – A well-defined strategy (3-5 years) provides direction and stability, even in uncertain conditions.
2. Lead with consistency – Setting clear expectations, holding people accountable, and enforcing boundaries reduces internal chaos.
3. Prepare for external change – Anticipate political and economic shifts, and adjust your financial and operational strategies accordingly.

While SMEs cannot control the broader economy, they can strengthen their own operations. The key is not just surviving the ups and downs, but ensuring consistent leadership to better navigate them.

ABOUT

Team Fusion, under the leadership of Gaelene Adams Love, specialises in providing coaching and business advisory services to couples running small to medium enterprises (SMEs) in New Zealand.

With a unique niche in resolving the challenges faced by couples in business together, Team Fusion offers a holistic approach to business, relationship and life, ensuring that healthy relationships are the foundation of a healthy business. Their services are backed by proven support, expertise, experience, and tools, making them a unique service provider in the business industry.

Gaelene Adams Love, as the Managing Director and a Business Relationship Coach, brings her extensive experience and passion for empowering couples to succeed both in business and in their personal lives. Team Fusion's commitment to their clients is encapsulated in their motto: "Better Business Together."

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