New Zealand has a healthy start-up culture, but more can be done to support the development of home-grown entrepreneurs, says business software provider MYOB.
"We think more needs to be done to establish New Zealand as a hub for start-up growth and development,'' said MYOB general manager Carolyn Luey in an MYOB special report called the State of Aotearoa's Start-Ups.
''This includes developing our education system, changing the public's investment mindset and cultivating talented people who can help businesses to scale up."
Among other things, New Zealand requires better access to capital and investors who are willing to take risks, she said.
"A smaller economy also means we have a smaller pool of people and organisations to supply funding. But start-ups with big and bold ideas need investors who are prepared to back them, despite the risk."
Ms Luey also underscored that major successful start-ups like Spotify, IKEA, Volvo, H&M and Skype realised that their domestic market was not big enough and "their approach is a vital ingredient that has been missing from the start-up mix in New Zealand".
The latest MYOB Business Monitor survey between February and March of more than 1000 small and medium business owners and managers included 96 start-ups.
Of that, MYOB found almost half (42 per cent) believe that the shortage in skilled personnel is their main barrier to innovation.
However, only 16 per cent of start-ups said that they conducted employee training in 2016.
Ms Luey also noted that 74 per cent of Kiwi start-ups are in favour of a graduated business tax structure, that progressively increases the proportion of tax they pay as their revenue increases.
In countries where start-ups flourish, such as Sweden and Switzerland, corporate tax ranges from 12-to-24 per cent. It is 28 per cent here.