SMEs

SMEs are undoubtedly important to maintaining economic growth and meeting the foreign trade agenda of most national economies (Ates, Garengo, Cocca, & Bititci, Reference Ates, Garengo, Cocca and Bititci2013; Battisti, Jurado, & Perry, Reference Battisti, Jurado and Perry2014). Therefore, the importance of small and medium enterprises and the owners who create them is attracting increased attention from policymakers and researchers alike. Understanding the different factors influencing small business growth can assist in anticipating critical requirements as SMEs expand, consolidate, undertake succession planning, or develop strategies for exit (Storey, Reference Storey2011). However, SMEs are facing increasing pressure from global competition, making it difficult to maintain and improve business performance, unless they can actively manage these pressures (Kraus, Rigtering, Hughes, & Hosman, Reference Kraus, Rigtering, Hughes and Hosman2012).

Blackburn, Hart, and Wainwright (Reference Blackburn, Hart and Wainwright2013) explored factors that contribute to the performance and growth of SMEs: business characteristics (including size, age, sector and location, lifecycle effects and resource availability, and utilisation), owner–manager characteristics (including growth aspirations and motivations, education and gender, and entrepreneurial style), and business strategy (including planning and collaborative activity). In their research they illustrate that all three factors are interrelated and strongly determines the performance and growth of SMEs. The structural landscape in which SMEs operate emphasises the individual and collective sets of characteristics that position the process of entrepreneurship that occurs within a community of interdependent actors (Isenberg, Reference Isenberg2010; Zahra & Nambisan, Reference Zahra and Nambisan2012; Stam, Reference Stam2015). Although there is no exact formula for the creation and sustenance of an entrepreneurial ecosystem (Isenberg, Reference Isenberg2010), there are several attributes that are considered to be influential, including system leadership, intermediaries and mentors, network density, talent, support services, and local or national government support (Stam, Reference Stam2015).

Research also acknowledge the role of individuals themselves as important in setting the strategy of the enterprise and, in turn, influencing its interaction with the ecosystem (Zahra & Nambisan, Reference Zahra and Nambisan2012). In much of the small business literature, the entrepreneur or business owners demographic, psychological, and behavioural characteristics, in combination with managerial skills and technical know-how are often cited as the most influential factors related to the performance of an SME (Man, Lau, & Chan, Reference Man, Lau and Chan2002). Generalised characteristics of SMEs are that they have limited access to resources, personalised management styles, and little formal structure (Battisti, Lee, & Cameron, 2009). This emphasises that, to assure positive performance and growth, SMEs need to gain business acumen, that is, ‘strategy development and implementation’, including rethinking the ‘role of the owner/manager and the absence of formalised HR policies and practices’ (Darcy, Hill, McCabe, & McGovern, Reference Darcy, Hill, McCabe and McGovern2014: 402). At the business owner level, there is a need for advanced managerial practices with appropriate levels of training and business education to advance and sustain managerial capability of an SME as it moves from the start-up phase (Ates et al., Reference Ates, Garengo, Cocca and Bititci2013).

The SME context in New Zealand

A Māori SME is defined as where the owner identifies as a Māori business, is not owned by another enterprise, is not a Māori authority (Statistics New Zealand, 2016), and has fewer than 50 employees (Ministry of Business Innovation & Employment, 2016). The report reveals that 29% of the workforce (i.e., 599,880 people) are employed in enterprises that employ fewer than 20 people, with 97% of New Zealand’s enterprises (i.e., 487,602 enterprises) being classed as small (Table 1).

Table 1

New Zealand small- to medium-sized enterprise (SME) categorisation

Source: Adapted from Ministry of Business Innovation & Employment (2016).

Dominated by primary production due to a diverse and rich natural resource base, New Zealand’s regions vary significantly in terms of their economic performance (Ministry of Business Innovation & Employment, 2015). It is not surprising, therefore, that the regions with large urban centres account for the majority of New Zealand’s SMEs. The regions of interest to this study (see Table 2) are the combined Otago/Southland regions, which account for only 13% of New Zealand’s total SME sector (Ministry of Economic Development, 2011).

Table 2

Overview of Otago and Southland regions

Source: Adapted from Ministry of Business Innovation & Employment (2015), Ministry of Business Innovation & Employment (2016).

^a Latest data available.

Recent studies have indicated that there has been an increase in Māori business activities, brought about by a combination of government economic and social strategy, combined with iwi (tribal) land claim settlements (Barr & Reid, Reference Barr and Reid2014; Hanita, Rihia, & Te Kanawa, Reference Hanita, Rihia and Te Kanawa2016; Statistics New Zealand, 2016). Compensation from Treaty of Waitangi settlements with the New Zealand Government have contributed to a significant increase in the Māori economic asset base from NZ$36.9 billion in 2010 to an estimated NZ$50 billion (Chapman Tripp, 2017). Iwi have become significant asset holders in the agriculture, fishing, forestry, and tourism sectors, with greater levels of economic self-sufficiency. Yet the Māori economy is more than just the sum of tribal resources, with an increasing contribution of Māori SMEs (one in five) contributing NZ$44 million to the burgeoning Māori export industry valued at NZ$485 million in 2015 (Statistics New Zealand, 2016).

Māori SMEs

Today, Māori business owners have created enterprising businesses operating across a wide variety of sectors, including tourism, agriculture, forestry and fishing, technology, geothermal energy, manufacturing, mining, property development, and business services and retail trade (see Reihana, Sisley, & Modlik, Reference Reihana, Sisley and Modlik2007; Warriner, Reference Warriner2007; Tapsell & Woods, Reference Tapsell and Woods2008, Reference Tapsell and Woods2010; Bargh, Reference Bargh2011; Henry, Reference Henry2007, Reference Henry2017). A number of studies have sought to determine features that distinguish Māori business from non-Māori (Reihana, Sisley, & Modlik, Reference Reihana, Sisley and Modlik2007; Spiller, Pio, Henare, & Erakovic, Reference Spiller, Pio, Henare and Erakovic2011b; Mika & O’Sullivan, Reference Mika and O’Sullivan2014). Although we acknowledge that ‘business is business’ and there are similarities, our notion of Maori business highlights differences, such as obligations to extended family groups; responsibility and accountability to a broader range of stakeholders; application of tikanga in the business environment; and an ethos that mirrors the broad goals and values of the Māori world.

For Māori, as with other indigenous groups, these values are traditionally based and commonly derived from their own unique cultural viewpoint. As with Indigenous communities around the world, Māori draw from a socio-historical value-system embedded within their worldview to inform their everyday lives, including modes of organisation and business practice. Te Ao Māori represents the Māori world, which has a strong connection to traditional wisdom passed through the generations. From a Māori perspective, there exists an inherent interdependency between all things: physical, philosophical, and cosmological. Thus, logic and practice are driven by a culturally oriented value-system that privileges the sanctity of relationships and connection, which influences the structure, governance, and practice of Māori business.

As suggested by Henry (Reference Henry2017, p. 25), ‘Indigenous entrepreneurship incorporates cultural characteristics, in terms of collective or communal orientation, inclinations towards kin-based enterprise and emphasis on employing forms of exchange as much or more for social and cultural purposes as for material gain’. That is, the Māori entrepreneur or business owner adopts a holistic and symbiotic consideration towards people and environment, as well as profits. The willingness to include community in their wealth or job creation activities gives Māori enterprises dual, and sometimes multiple, roles because they contribute to both the social and economic objectives of communities: whānau, hapū, and iwi (Henry, Reference Henry2007; Foley, Reference Foley2008; Eketone, Reference Eketone2013; Barr & Reid, Reference Barr and Reid2014). Case study analysis by Foley (Reference Foley2010) identified that cultural links with networking among Māori entrepreneurs was very strong and that the role of family was an important element of business support. Therefore, suggesting that networking and the networking skills of the Māori entrepreneur were essential business attributes and an extension of their cultural life.

Research reveals that social–cultural norms have a significant influence on Māori business activity (Broughton, Wilson, & Ruwhiu, Reference Broughton, Wilson and Ruwhiu2006; Tapsell & Woods, Reference Tapsell and Woods2008; Spiller, Erakovic, Henare, & Pio, Reference Spiller, Erakovic, Henare and Pio2011a). Māori values and cultural expressions are integral to Māori business owners, who place considerable importance on the incorporation of Māori whanonga pono (values) and tikanga (protocols and practices) Māori into their businesses (Devlin, Reference Devlin2007; Warriner, Reference Warriner2007; Te Puni Kōkiri, 2014b). For Māori socio-cultural factors play a significant role in the creation, structure, and activity of their businesses (Reihana, Sisley, & Modlik, Reference Reihana, Sisley and Modlik2007). Therefore, performance is not merely an outcome of economic activity, but is also derived from combinations of distinct socio-cultural resources and capabilities.

Māori business is as likely to be influenced by socio-cultural objectives as economic success (Haar & Delaney, Reference Haar and Delaney2009; Tapsell & Woods, Reference Tapsell and Woods2010; Spiller & Stockdale, Reference Spiller and Stockdale2013; Te Puni Kōkiri, 2014b; Hanita, Rihia, & Te Kanawa, Reference Hanita, Rihia and Te Kanawa2016). Therefore, defining ‘success’ for Maori SME owners is difficult and complex (Tapsell & Woods, Reference Tapsell and Woods2010) as Māori business enterprises often have noneconomic explanatory variables, likely to include socially driven objectives, and some of their cultural values are often incompatible with the basic assumptions of mainstream theories (Spiller et al., Reference Spiller, Erakovic, Henare and Pio2011a). The challenge for Māori business owners is often how to balance aspirations for cultural enrichment with more modern elements of growth, commerce, and economic advancement. A task made difficult for many Māori small enterprise owners who view the business world landscape as a murky terrain and the discourse in many respects being ‘alien’ to them (Broughton, Wilson, & Ruwhiu, Reference Broughton, Wilson and Ruwhiu2006). Lack of business skills are still viewed as being a significant barrier for Māori small businesses, driving increased attention on upskilling and education for Māori businesses (Reihana, Sisley, & Modlik, Reference Reihana, Sisley and Modlik2007). In addition, issues such as a lack of capital or access to funding, balancing family and business interests, and access to expertise were also concerns (ANZ Bank, 2015).

Kaupapa Māori Research

As Māori researchers, we ensured that the assumptions, values, and priorities of our study followed appropriate protocols for kaupapa Māori research (Walker, Eketone, & Gibb, Reference Walker, Eketone and Gibb2006; Smith, Reference Smith2012). Although, as an Indigenous research tradition, kaupapa Māori research does share similarities with general approaches to research in management and organisation, there are differences stemming from underlying paradigmatic qualities in this instance drawing from Mātauranga Māori, Māori epistemology. In a paradigmatic sense, kaupapa Māori research sets the field of study, and defines what needs to be studied and what questions should be asked (Smith, Reference Smith2012). As such, it presents a regime that provides a template for a culturally attuned response to researching in Māori contexts (Ruwhiu & Cone, Reference Ruwhiu and Cone2010). Specific details as to the research processes undertaken within our kaupapa Māori approach are discussed in the subsequent subsections.

The methods of research design involved in kaupapa Māori research are not particular to Māori. It is a framework that allows for a suite of methods providing they are consistent with kaupapa Māori principles (Awatere, Mika, Hudson, Pauling, Lambert, & Reid, Reference Awatere, Mika, Hudson, Pauling, Lambert and Reid2017: 82). Therefore, certain kinds of qualitative research, for example open-structured interviews, fit comfortably with the kaupapa Māori approach by allowing perspectives and interpretations of the subject to be shared and meaning ascribed by the participants (Ruwhiu & Cathro, Reference Ruwhiu and Cathro2014). However, a key principle or standpoint of kaupapa Māori research is that of tino rangatiratanga (self-determination); it is about a Māori-centred agenda where the issues and needs of Māori are the focus and outcomes of the research (Smith, Reference Smith2012; Rewi, Reference Rewi2014). As Brewer, Harwood, McCann, Crengle, and Worrall (Reference Brewer, Harwood, McCann, Crengle and Worrall2014) describe, these include:

• ∙ forming reciprocal relationships with the research community that last beyond the study;

• ∙ having credibility as a researcher which may include relational linkages;

• ∙ having respect for people, which includes sharing findings, being culturally safe and politically astute and having a humble approach;

• ∙ being a ‘seen face’ and fronting up to people; and

• ∙ having a joint approach to research.

In addition, unlike traditional research in organisation and management, any data collected from kaupapa Māori research do not become the ‘property’ of the researcher: rather the data remain under collective guardianship (Walker, Eketone, & Gibb, Reference Walker, Eketone and Gibb2006). That is, there is an inherent sense of connection between the researchers and the participants, which bring a significant sense of obligation and responsibility to how the data are managed.

Participants

The aim was to ensure through purposive sampling that our respondents would adequately represent a sample population of Māori SMEs and enabling agencies that could offer insight. As such, we followed the Ministry of Business Innovation & Employment (2016) definition of what constituted an SME in New Zealand (fewer than 50 employees). We also included key local and national government business agencies as well as the main tribal group, Ngāi Tahu that act as ‘enabling agencies’ in the Southern region. The Southern region was chosen predominantly not only for ease of accessibility but also in recognising a stable economic environment for SMEs in these regions (Ministry of Business Innovation & Employment, 2014).

The fieldwork involved interviews with 11 Māori business owners, noting that two of our participants had two businesses, one established and the other a new venture, which they spoke about separately. In addition, we included interview responses from four representatives of support services specific to the Southern region (Tables 3 and 4), three of whom were working in Māori focused business service support, and one who was a Tauiwi (non-Māori) business advisor from a non-Māori organisation.

Table 3

Participant details of Māori small- to medium-sized enterprises

^a Two participants have an established business and a new business start-up each.

Table 4

Participant details enabling agencies

Data collection and analysis

Empirical data were gathered using open-response interviewing, which enabled responses to emerge as a result of the participants’ and researchers’ conversations (Yeo, Legard, Keegan, Ward, McNaughton-Nicholls, & Lewis, Reference Yeo, Legard, Keegan, Ward, McNaughton-Nicholls and Lewis2014). The one-to-one interview approach was semi-formal and undertaken kanohi-ki-te-kanohi (face-to-face). The interviews conducted at participants’ workplaces usually lasted between one and several hours and were recorded. At the beginning of each interview, the researcher began with an introduction and explanation of the projects research objective. An important element at this stage was the opportunity for mihi, noted here as a form of introduction and a way to establish connections between ourselves and our whānau, to establish the connection between the researcher and the participant. It would be simplistic to note this as a trust-gaining exercise; rather, it is viewed as whanaunatanga, being strongly connected to collective responsibility captured by the ethic of belonging and traditional way of thinking about relationships (Bishop, Reference Bishop1996; Smith, Reference Smith2012).

The participants were encouraged to speak about their own experiences and what they deemed as important (Yeo et al., Reference Yeo, Legard, Keegan, Ward, McNaughton-Nicholls and Lewis2014) in relation to CSFs of their business. The interviewer did ask some questions, but more in response to points participants raised and allowed for meanings to be expanded upon. Open-ended, semi-structured interview style allowed the interview to be constructed as a dialogue, although semi-structured questions provided direction (Rapley, Reference Rapley2004). Guiding the discussion was a series of questions which were provided to participants prior to the interview (Appendix 2). The intention was not to have a question/answer approach to the interview, rather a more general discussion.

Full transcriptions and, where requested, the voice recordings of interviews were sent to each participant for their review. Participants were provided the opportunity to read and accept their transcript (or offer changes/clarification as to what was said). Transcripts averaged 12 pages each (single line spacing, 12 font text).

The initial coding phase of analysis was the interviewer reading and coding themes using the word document commentary function. This was then followed up by a second team member to add a further coding layer to the same document. Given there were two sets of interpretation occurring, the two researchers then met to discuss the different sets of codes and pull themes together. Through a process of vigorous discussion in relation to the transcripts, and themes, careful attention was paid to codes that were deemed to be outliers (e.g., a code or theme that emerged through one researchers perspective only). The resulting 28 themes were a result of both researchers having thoroughly debated and rationalised the inclusion of the themes for the second level of analysis.

A second level of analysis was conducted by loading the transcripts into the NVivo Qualitative Data Analysis (QDA) computer software package. NVivo is an ideal technique for researchers working in a team, since it facilitates combining the work of individuals working on one project (Hilal & Alabri, Reference Hilal and Alabri2013). NVivo enables researchers to manage and query data and ideas, visually model conceptual and theoretical data, and formulate reports (Bazeley, Reference Bazeley2007). Through, selective coding, data were inductively organised thematically and descriptively, to refine the themes from the first level of analysis, which saw themes being clustered into higher level subjects (Gibbs, Reference Gibbs2002). A final level of analysis abstracted three broader thematic categorisations of CSFs for Māori SMEs (Table 5). Specifically, the utility of this approach was that it enables analysis at each stage and supports an iterative process of identifying, refining, and reflecting on constructs throughout the research cycle.

Table 5

Thematic development

‘Being’ a Māori SME

Participants acknowledged and were very ‘proud’ of being a Māori business, a Māori entrepreneur. When asked about how Māori businesses were perceived and defined, our participants acknowledged the similarities to ‘mainstream’ businesses in terms of operation. However, other features highlighted that there are specific signifiers of Māori SMEs related to practice and socio-cultural values.

The issue of noneconomic factors of success was also discussed during interviews, as the Māori SME participants were asked to reflect on what success meant to them. While economic success was important, our participants considered their values and cultural capital as integral to their business success. Primarily, our participants highlighted the importance of taking care of whānau, as an influence on being in business and on the outcomes being aspired to.

In addition, how our respondents saw themselves as a Māori business influenced whether they saw themselves as part of the Māori economy, for it was clear that the ‘notion’ of Māori economy for them was one that went beyond economic notions of production, distribution, employment, cash flow, and productivity, but extended to socio-environmental relationships and values. This is noted specifically by [B6], when she stated that ‘Even defining economy for Māori, it’s everything. It’s not just a dollar. It’s not the dollar value. It’s everything’. As shown by [B6], the notion of a Māori economy is seen as more encompassing than is perhaps commonly understood. Our participants viewed the economy as diverse and multifaceted with deep linkages to the area in which it operates.

An additional feature that emerged from the narratives was that participants saw intrinsic linkages amongst iwi, hapū, and whānau enterprises, even though these different organisational forms were not necessarily aligned in a business sense. There was recognition that the different forms of organisation and enterprise – from tribal to individually owned – which constitute the Māori economy operate both independently and interdependently, contributing to the way that communities are nurtured and sustained. We specifically probed our participants about whether they had realised ‘opportunities’ as a result of tribal Treaty settlements. While the majority had no direct benefit, they acknowledged the role of iwi enterprise in the region:

Several participants made positive comments on the growth of Ngāi Tahu business enterprises and the important role a collective iwi enterprise has in regional development. There was also the feeling that the tribe’s wider presence, while not directly influential, seemed to have had an indirect influence at the level of making Māori business more acceptable at a broader societal consciousness level. That is, the collective success of Ngāi Tahu had brought about a more conducive environment for Māori business generally in the South.

Regional landscape

Both business owners and business support agencies spoke of the positive aspects for locating or maintaining a business in Otago/Southland. Several interviewees commented that their regional location offered opportunities that might not be available elsewhere. For some, the decision to base their business in the Southern region was as a result of the long-lasting ties that the individual business owner had with the region. However, even more recent arrivals appreciated the unique opportunities that the Otago/Southland region offered. Thus, for some, the key driver was to be ‘[able to work] on my own whenua …on behalf of the wider whānau’ [B8]. Others viewed the conservatism and small size of Otago and Southland as having some business advantages. For instance, one participant viewed Dunedin as a good place for smaller entrepreneurs compared to Auckland where there was ‘almost like a vibe that you’ve got to make it bigger’ [B11]. Others considered that the conservative nature of the Southern regions was a positive business attribute as you could still do business ‘with a handshake … [creating] obligation to do a really good job’ [B7]. This observation was echoed by a business support agent who commented favourably on the ‘sustainability, environmental bottom lines, long term approach and the intergenerational approach to businesses … long history, long established families, a closer, smaller community’ [A4]. Such a comment highlights the favourable links between community and business that make it easier to contribute to the community, whether it be through sponsorship, working for or with the local whānau or marae, or by contributing to the wider economic development of the region.

Mentoring featured as a prominent theme in most interviews and was commonly cited as a critical aspect for our Māori business owners. Sources of mentoring included both formal professional services (accountants, lawyers, financial advisors, etc.) and informal sources such as friends and family. The importance of relationships was recognised by all the business owners; though interestingly, it was considered in the context of region, with regional relationships with other non-Māori business enterprises viewed as favourable.

For one owner new to the region, a Māori business service provider was important because the owner did not have the ‘grass root’ connections in place. Other business owners spoke of the value of entities such as the central government-funded Māori Business Facilitation Service and KUMA (Te Kupeka Umaka Māori ki Araiteuru, the Southern Māori Business Network):

While appreciating the Māori context of Māori support services, SMEs also looked to develop a rich network of non-Māori connections. This aspect was reiterated by a business owner who was positive about the collaboration between the Māori Business Facilitation Service and the local Chamber of Commerce to put on training courses:

Business support agencies, in particular interagency collaboration, are viewed as being a vital factor for Māori SMEs at all stages of their business lifecycle, both to mitigate business risk and to enable SMEs to grow. However, in the above-mentioned narrative, participants make specific reference to distinctive regionally focused support services as being critical to their success. One service provider participant identified one rationale for this focus as being ‘I suspect in each region it is quite different, because it is different resources, different access to service’ [A3]. This is to be expected in a region where there has been a reduced national government presence in relation to economic development.

Business strategy

Although there is some debate as to the veracity of government support for small businesses, current national level policy seems to encourage SMEs to grow, with a focus on international export (Ministry of Business Innovation & Employment, 2015). This is not always what SMEs have in mind for themselves, as is shown in the above quotation. As is common with many SMEs, formal strategic planning, beyond initial business planning, was not common. However, there was a strong connection between the owners’ values and decision-making:

Performance and growth are dependent on factors, both internal and external to the business. Participants varied in motivation, aspirations, and visions for their business, with a number of them having previous business experience which had shaped their views of what were essential business operations skills. Human resource management was deemed as critical to ongoing SME success, with staff being valued and provided with ongoing training, but being driven by a kaupapa or philosophy that emphasised human value. Indeed, many of our participants viewed it as akin to the concept of whanaungatanga (relatedness) and building relationships with staff to engender a sense of belonging:

Some acknowledged the importance of technology as a vehicle for increased productivity, efficiency, and revenue. The procurement, implementation, and knowledge around technology varied amongst our research respondents. In some cases, the role of information technology, social media, and online technology was considered important, but the Māori owners realised that they did not have sufficient capability, so they outsourced. In relation to ‘innovation’ tools such as information technologies, there was evidence that technology needed to be filtered through a kaupapa Māori approach:

As noted earlier, opportunities for training and business education are readily available to SMEs. Throughout our research, participants acknowledged the importance of continual learning, training, and business education to future success, as is evident in the following comment:

Challenges

Although participants were, in general, positive about the business environment, they also referred to some distinct challenges facing Māori SMEs. Firstly, the reducing footprint of government services in terms of a regional presence was highlighted as a concern for some. Regional development had not ‘really been a kaupapa for the government’ [A2] and the reduced footprint of government services, such as the Inland Revenue Department or District Health Boards, had a perceived detrimental impact on regions and their economies. This drew one participant to consider the impact of a national policy that appeared quite disconnected from regional needs, with a consequent impact on how Māori SMEs operate:

Although participants acknowledged the importance of ‘mainstream’ agencies like the Otago/Southland Employers’ Association and Inland Revenue Department, there was some feeling that Māori SMEs often ‘don’t have easy access’ [A3] to these. This contrasted to the less transactional and more whānau-oriented approach adopted by Māori-focused business agencies. Given that some of these agencies are under continual review, it is not unreasonable to suggest that a ‘one size fits all’ approach might be to the detriment of Māori SMEs unless, as noted by one participant, such business support agencies engage productively with Māori:

Location plays a positive part in business start-up opportunities, but can also expose a Māori enterprise to attitudes that still remain as a result of New Zealand’s colonial legacy. A second challenge was the hesitancy of some Māori SMEs to brand themselves as a Māori business in the region, with one owner suggesting that her business might consider ‘key words perhaps in some of the things you do … there’s actually not stopping anything, you know, there to be family, whānau or you know, there’s no reason why that couldn’t be incorporated. I think it needs to be subtle … a little bit because of the region perhaps, but also making it fit in for it to be right because it is such a sensitive area. You have to tread a really sensitive careful line’ [B1]. This reluctance meant that some business owners preferred to be known as a ‘mainstream’ business with no Māori references. Some reasons for this were provided by the business owners themselves. For example, there is the low visibility of Māori, with the region seen as ‘white middle class New Zealand’ [B12]. There was also the perception that Māori things happened elsewhere and only in areas which had an already distinct Māori brand, as expressed by one participant who described how ‘when I first started out and they said to me – what are you doing here, doing Māori things? If you want them to do a Māori thing, let them go to Rotorua’ [B10]. Finally, some businesses experienced a kind of ‘soft’ racial prejudice evidenced in comments of customers who stated ‘We’ve never had Māori’s in our house before. We get comments like that all the time’ [B5]. These perceptions led some of our participants to prefer to ‘sit under the radar’, fearing that being overtly ‘Māori’ could negatively affect their business.

A final challenge for participants was the need for them to develop and exercise fundamental business knowledge and skill. One participant commented that although ‘the greatest need (for support) really is in the start-up phase’, even mature businesses ‘still don’t have their systems and processes tied up properly’ [A3]. Another participant spoke of the need for Māori SMEs to develop and maintain business acumen in order to cope with transition over periods of change, pressure, and growth:

This becomes even more critical with changes in employment and health and safety regulation:

A few established businesses had developed strategies to foster long-term growth, while others were grappling with making the transition from start-up success to developing the resources and infrastructure to progress to the ‘next level’:

Much of the above may be summarised as having business ‘acumen’, a trait that support service participants believed could be developed and honed. Thus, while the participants in this study had entrepreneurial skills to start a business, business acumen was critical to ongoing Māori SME success and survival.