How New Zealand businesses are faring in 2022
The Shaping Business Study from 2degrees sheds new light on Kiwi companies.
Each year, 2degrees publishes its Shaping Business Study, a review of the top trends and factors influencing companies across New Zealand. The survey of more than 700 employing business decision-makers highlights the fears, hopes, and ambitions of large and small companies, delivering insights on lessons learned and what to expect in the year ahead.
Andrew Fairgray, chief of business at the broadband and mobile network provider, says the annual survey provides a valuable perspective on the challenges faced by New Zealand business owners.
“As a telco whose role is to support New Zealand businesses, our job is to enable businesses to become more productive. A study like this tells you what’s happening across the islands; we can then pull the information together and share it.”
The findings from the Shaping Business Study are shared with the New Zealand Chambers of Commerce, informing its work with members as it looks to build business resilience and help them take on economic challenges.
“We take the insights from our studies and help people find these resources so that they can leverage them to their advantage,” Fairgray says.
During a difficult time for
“Nearly one-quarter of NZ businesses said they lacked digital skills but wanted to improve, and 34 per cent would like to upskill but didn’t have the time.”
company owners, with global uncertainty, high inflation and rising interest rates, Fairgray says it’s important to understand the frustrations felt across the country.
“Our 2022 report highlighted labour shortages as the number one challenge for 53% of people,” he says. “Normally, it’s cash flow, so it was interesting to learn that. There’s significant pressure on wages and retaining good people.”
This year’s study also revealed that many companies were struggling to offer remote working capabilities. Only 46% of NZ businesses had introduced flexible working.
“Flexible working is a requirement now from most employees, but for small businesses, it can be challenging to offer.”
Fairgray believes companies can adapt to labour market pressures through digitalisation and improving productivity. Digital tools can also help companies adapt to the flexible working model.
According to this year’s report, Kiwi companies are increasingly focused on productivity gains. 61 per cent of businesses that prioritise productivity are likely to invest in better technology. Mid-sized companies were more likely to place emphasis on improving productivity levels.
The study also found that NZ employers believe technology can improve their business. Nearly onequarter of NZ businesses said they lacked digital skills but wanted to improve, and 34 per cent would like to upskill but didn’t have the time.
Fairgray says productivity remains New Zealand’s greatest business challenge. He believes digitisation is the key to solving it.
“We need to look at how we’re going to drive productivity across
New Zealand. It’s critical, as you can’t have the kind of wage inflation we’ve got without productivity improvements as well.
“Businesses often don’t know where to go to find the digital skills they need to be relevant in today’s world. There’s this big inequity for those who don’t have access to digital applications and telecommunications applications.
“There’s also an inequity in that many business leaders don’t know where to get the necessary skills to improve productivity. And often, small companies don’t have enough time to do digital training. So we’re looking at how to work with our partners to help businesses.”
Fairgray says 2degrees has a key role to play in unleashing the Kiwi companies of the future.
“How do we enable businesses to be more productive? And how do we leverage investment in telecommunications to improve productivity? We do that with world-class mobile and broadband networks across New Zealand. We can help by serving that up,” he adds.
2degrees plans to use this year’s study, and future editions, to inform its work with its partners including the Chambers of Commerce.
2degrees has shared its latest annual Shaping Business Study as part of its ongoing commitment to a thriving business environment in Aotearoa. Read the survey at 2degrees.nz