Catalyst for new business

AUCKLAND: The Covid-19 lockdown gave many New Zealanders the time and motivation to launch new businesses.

Maybe it was a business idea they had been sitting on for sometime, or maybe it was an idea that was sparked by a newfound need.

Data from the country’s largest bank, ANZ, shows a 13% increase in the number of small and mediumsized business accounts opened in the year to April, consistent with new business listings on the Companies Register since the lockdown in April.

Companies Office data shows more than 38,500 new businesses have listed since May, up 20% on the same time last year.

From May to December, ANZ experienced a 22% decrease in the number of business accounts being closed. This could be attributable to the Government’s wage subsidy scheme.

Infometrics estimated that during lockdown only 53% of the workforce were on the job and almost 1.2 million workers were at home.

ANZ managing director of business Mark Hiddleston said it appeared many New Zealanders had used the downtime to think up new business ideas and identify gaps in the market.

‘‘Since the Level 4 lockdown we’ve seen more Kiwis look to start their own business as a source of income.

‘‘Today’s small startup could become tomorrow’s next big employer, so it’s great to be able to support this kind of activity.’’

Snow gear and eyewear business Powda was one company that started during the pandemic.

Founder Kim Western said she used the lockdown as an opportunity to develop a website and build relationships with other retail and outdoor experience businesses.

Ms Western was made redundant during the lockdown, and instead of letting it get her down, she used her newfound time to grow Powda.

‘‘My business relies on people being able to go outdoors so the lockdown and restrictions on gatherings had a huge impact.

‘‘Without international tourists, there have been fewer people on the mountain this year, but it’s been overwhelming to see the support New Zealanders shown to local companies,’’ she said.

‘‘One of the best things to happen during and after lockdown was the way businesses collaborated. Egos were put aside and we helped each other get through.’’

Small and mediumsized enterprises make up 97% of all New Zealand businesses, employ more than 630,000 people and generate 28% of this country’s gross domestic product.