A major provider of general and life insurance products is challenging the theory that bigger is best as it launches its inaugural Business Success Index.
In research commissioned by
Suncorp New Zealand, titled “From Risk to Reward,” it has been found that many New Zealand businesses do not define success with growth – a view the insurer said may hinder companies from acquiring traditional success.
The survey, conducted by UMR and which polled 435 NZ companies, revealed that 78% of Kiwi companies value work-life balance as much as growing their business, while 58% said they would rather prioritise productivity and efficiency over growth.
The findings were even starker for small to medium enterprises (SMEs), over one-third of which said they are not seeking to grow at all, 62% said they are focused on productivity and efficiency, and 80% stated they have a clear goal of work-life balance.
Suncorp New Zealand CEO
Paul Smeaton said the findings provided an important insight into the attitudes of a “significant growth engine” for the country’s economy – the SME sector, which represents 97% of all NZ businesses.
“When we think about growth, we tend to think about hiring more staff, leasing more office space, and expanding our physical presence into new markets, but this research suggests it’s time to redefine ‘growth’ on our own terms,” Smeaton said.
“The businesses we surveyed told us very clearly that they think growth comes at the expense of quality of life, which we know is a prized asset for New Zealanders. This attitude is likely to be limiting the aspirations of some businesses, however, we question whether things like success, growth and lifestyle really need to be mutually exclusive.”
The insurance chief said NZ businesses, SMEs in particular, can probably do more when it comes to identifying and managing risks in a way that will empower them to overcome challenges and succeed on their own terms.
“Being a nation of SMEs means resilience and problem-solving are in our DNA, and we are world leaders because of this. The question is, how do we enable even greater success?” he queried.
“If part of your definition of success as a business owner is achieving work-life-balance, you need to make sure that you have peace of mind about your business when you’re not there. When risk is properly managed, businesses do better – it doesn’t matter whether they have 500 employees or five,” Smeaton said.
The study also revealed that five of the top seven factors in business growth and success relate to people - the top three as having the right skilled people (87%), quality and reliable staff (83%), and a confident leadership team (77%).
On the other hand, the key factors hindering growth are funding/access to capital and having the right staff.
When it comes to managing risks, less than half of the businesses surveyed said they are not confident in making risk decisions. Meanwhile, SMEs were found to be more risk averse and don’t comprehend risk minimisation strategies in place.
It has also been revealed that NZ companies are generally positive about the current business environment in the country, with 61% having current or future growth plans.
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