Business Growth Grants successful

The first companies to have received Industry New Zealand Business Growth Grants have doubled their staff numbers and increased sales by 46 per cent in the year since their grants were approved Jim Anderton announced today.

“Since the Business Growth Fund was established in early 2001, Industry New Zealand has approved grants totalling $14.7 m to 231 small to medium sized companies throughout New Zealand, and of these only one has been known to go into receivership,” said Jim Anderton.

“Reflecting the growth goals of this Labour Progressive Government 77 per cent of the grants ($11.4M) have gone to companies operating in sectors where New Zealand is considered to have sustainable international competitiveness. These include biotechnology, wood processing, niche manufacturing and creative sector companies amongst others.

“All of these companies have high growth potential and an export focus.

“Unlike opposition critics, business people understand that rapid growth is inherently risky. The low failure rate is therefore an outstanding success when benchmarked against the experience of economic development agencies around the world. Opposition arguments seem to be that if there is one failure then we should return to the bad old days of negative economic growth and viable businesses failing unnecessarily.

“Across all Industry New Zealand programmes, our clients are forecasting the creation of over 8000 jobs and revenue growth of over $2.5 billion within the next 2-5 years.

“What is also good news for New Zealand is that the first five companies to have received Business Growth Grants have subsequently increased their original growth projections by around 50 per cent.”

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