Open Access Te Herenga Waka-Victoria University of Wellington
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Do performance metrics of self-identifying Māori firms differ from non-Māori firms?

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posted on 2023-04-12, 12:15 authored by Chen, Lucas

The Māori economy is an increasingly important contributor to the wider New Zealand economy, with an estimated asset base of at least $68.7 billion in 2018. Nicholson Consulting (2020) uncovered more than 10,000 economically significant Māori-owned businesses (excluding sole traders), representing 6% of all businesses with active shareholders across New Zealand. Stats NZ’s Tatauranga Umanga Māori 2019 reported record profits in Māori farming businesses and the Productivity Commission’s frontier firms inquiry noted how tikanga values and “multiple bottom lines” can drive innovation and growth. Success in the Māori economy can diffuse through the national economy and improve both Māori and non-Māori prosperity. This paper examines the performance, productivity, and growth dynamics of self-identifying Māori firms surveyed in the Business Operations Survey (BOS) relative to that of non-Māori firms using Stats NZ’s longitudinal business database (LBD). The study population comprises of longitudinally matched Māori firms with non-Māori firms surveyed in BOS, based on their respective age, size, and industry characteristics. Pooled regression models estimate Māori firms have 6.3% lower labour productivity than matched non-Māori firms, but this isn’t fully reflected in wage and salary earnings. Wage and salary earnings per employee are only 2.6% lower in Māori firms, thus comprising a greater relative portion of Māori firms’ value added. Growth dynamics are not significantly different between Māori and non-Māori firms but industry differences are, particularly in agriculture and certain services sectors.

History

Copyright Date

2023-04-13

Date of Award

2023-04-13

Publisher

Te Herenga Waka—Victoria University of Wellington

Rights License

Author Retains Copyright

Degree Discipline

Economics

Degree Grantor

Te Herenga Waka—Victoria University of Wellington

Degree Level

Masters

Degree Name

Master of Commerce

ANZSRC Socio-Economic Outcome code

210899 Te tuku ihotanga me te ahurea Māori kāore anō kia whakarōpūhia i wāhi kē (Māori heritage and culture not elsewhere classified); 219999 Other Indigenous not elsewhere classified; 150304 Productivity (excl. public sector); 150599 Microeconomics not elsewhere classified

ANZSRC Type Of Activity code

3 Applied research

Victoria University of Wellington Item Type

Awarded Research Masters Thesis

Language

en_NZ

Victoria University of Wellington School

School of Economics and Finance

Advisors

Grimes, Arthur