I was inspired to write this blog by viewing this perceptive commentary from Mike Hosking this morning.
What concerns me the most is the current Government’s tendency to downplay – and even ignore or reject – findings from business confidence surveys.
It is absolutely of no surprise to me whatsoever that particularly small business confidence is as low as what it is right now. And having been a Regional Business Advisor in recent times, and knowing what the format of the Regional Business Partner (RBP) programme is, I don’t believe this programme in its current shape and form is going to be hugely influential in either reducing small business fatalities or re-building business confidence and assisting commercial growth.
There are two main reasons why I suggest this. Firstly, in my experience, despite receiving assistance/ guidance through the RBP programme, many business owners tend to shun the advice given to them and maintain an “I know what’s best for my business” attitude. Secondly, I question whether the right resources are in place on the coalface to deliver the best programme possible. Neither points are criticisms – simply first-hand factual observations.
In my view, the answer to improving business success statistics (and therefore reducing the business failure rate statistic) doesn’t manifest itself in the form of some government-conceived programme. Most experienced business people know that typically governments do not hold the betterment of the business environment as a primary focus/ objective – despite its importance as a fundamental tax revenue stream for central government. Rather, the answer lies in getting talented (and proven) private sector people who possess deep and varied backgrounds in business to work with open-minded small business owners (in particular) to most importantly help them set strategy and then convert strategy into operational level plans for implementation.
On a slightly different note, the level of external borrowing being displayed by central government currently should be of primary concern to EVERY New Zealander. How do you think this borrowed money is going to be repaid ?
Government strategy – at a central, regional and local level – must necessarily be re-focused on ENABLING New Zealanders. Monetary compensation as a substitute for teaching people the skills they need in order to increasingly become self-sufficient (i.e. stand on their own two feet) has never worked in the past, and will not work at any time either now or in the future, to resurrect an economy. Instead, resurrection must necessarily come from “improved productivity” – and this means up-skilling people to be able to meaningfully contribute towards productivity in all industries.
Furthermore, Government strategy must move more towards ENABLING New Zealanders by EDUCATING Kiwis as to what “the right thing to do is”, versus continuing to add to an abundance of legislation and regulation. If you want people to win at what they do then TEACH them how to do that thing that you expect them to do; and build their competencies through encouraging ongoing EDUCATION – and through developing leaders of organisations who actually have the skill-set and capability to lead effectively.
What you end-up with as an end-result is a “Push-Pull” dynamic. The “Push” element is the provision of “relevant” education (i.e. practices/ methods/ measures that are “proven” to have caused significant desirable/ commendable outcomes); and the “pull” element is “effective leadership” pulling people who are in subordinate positions in well-reasoned and validated strategic directions.
I think right now N.Z. is in the most precarious economic position that it has been in during my lifetime. The answer to start turning this situation around is not to continue to hand-out money that will generate nil return. Rather, the answer lies in getting more able New Zealanders up and running on their own two feet through education and experienced effective leadership at the grassroots level.
So what am I doing as an individual to help our country to realise a brighter future ? In 2016 I wrote the book titled “Real World Proven Best Business Practices – Bridging the Gap Between Academic Teachings and Real World Business Success” (this book can be previewed via my company website here; or it can be previewed in the Amazon website here); I lecture in commerce subjects at the Eastern Institute of Technology when invited to – mainly using material from my book in doing so; and I’m presently looking into a role which has the potential to give vulnerable Kiwis a new lease of life rejoining the workforce.
What more Kiwis need to do is stop putting their hand “out” to receive money; and instead put their hand “up” to signal their interest in being shown (i.e. taught) how to sustain their own existence. And when relevant education is offered, grab it with both hands, open your mind, and be willing to learn.