Named as the 'easiest' country in which to set up a business, New Zealand is an attractive base for entrepreneurs. We take a look at its largest city.
Wellington may be the capital of New Zealand, but the country's commercial heart is 400 miles away, in Auckland. Compared to other cities in this series – New York, Shanghai, Paris - its population is pretty tiny at 1.3 million, but don't let that put you off what could be one of the most rewarding and straightforward cities in which to grow your business.
At a time when many might be wary of investing in the EuroZone, New Zealand's economy remains stable and unemployment rates are falling. The country is also extremely friendly towards smaller firms. It was described last year by The Economist as having "turned itself into an entrepreneurial powerhouse, leading the world in the creation of small and medium-sized enterprises".
FUN AND STRAIGHTFORWARD
Relative to most other countries, expanding business in New Zealand is blissfully simple. The 2010 World Bank Survey even named the country as the easiest in the world in which to set up a business. Christian Arno founded Ling024, a translation agency with a £5m turnover, five years ago. It has offices all over the world, of which the New Zealand branch was the second. He says: "Setting up in NZ was fun, straightforward and relatively familiar - certainly a lot easier than it's been in Romania and Panama!” He found costs to be lower than the UK, and the regulatory very similar.
The country has few restrictions on establishing or operating a business and it's one of the least corrupt nations in the world. Furthermore, the country is eager to attract investment, and so getting a Visa under the 'Entrepreneur' or 'Investor' category to live and work in New' Zealand is a simple process. Corporation tax though, it's worth noting, is relatively high at 28%.
HIGH CALIBRE PEOPLE
Arno cites the country's highly educated, culturally diverse population as one of-the main advantages of doing business in New Zealand. "People are relaxed and friendly, but serious about business and with high standards. For us it was very attractive to find such an abundance of Asian language skills, particularly among native English speakers," he says.
Dave Taylor, whose business OnGuard set up an Auckland office 18 months ago, agrees: "Everyone, without exception, has been very helpful and everyone has a very positive attitude. The country still seems to be based on 'old-fashioned English principles' - people are polite and in business a gentleman's word is his bond. And all of this takes place against a backdrop of an international cosmopolitan city. It's an interesting and enthralling contrast."
GETTING TO KNOW YOU
The fact remains though that the New Zealand market is small. The population of the whole country is just 4.4 million, though businesses may be attracted to its ties to Australia and the US, and proximity to Asia. Taylor explains that operating in a small city such as Auckland can bring both advantages and difficulties: "Everyone does know everyone and there are numerous networking events. Word gets around very quickly, which is great if things are going well but not so great if things go pear shaped!
So it's important to put out an image of quality and to make sure every customer really is a happy customer." Because of this, anyone arriving in Auckland should be prepared to put in a lot of time getting to know people, and Taylor says potential clients will want to ensure a business is here for the long-term before working with it. Auckland itself is New Zealand's largest city, and was ranked fourth in the world for quality of living by the 2009 Mercer survey. "The suburbs are well connected to the central business district and there isn't even a traffic-problem here ...yet!" says Taylor. And despite its size, Auckland is vibrant and cosmopolitan. Of course, working in the city makes it virtually impossible to pop back.
to the UK, with a direct flight from London taking 23 hours. The13hour time difference can also make communicating with a.UK office challenging. If you're prepared for the long haul though, it is a great place to be, according to Taylor, who adds: "We're here to stay."
Source: Growing Business, Energising Entrepeneurs
Dec 2010/Jan 2011