Providing a small business platform for growth has been a vital role of the government’s Small Business Council, of which I am privileged to be Chair.
SME’s contribute 28 percent to GDP and employ some 25 percent of all New Zealanders, and the SME sector in Tauranga is a vital thread in the fabric of our community.
Cashflow is king for any business and none more so than SME’s who are often at the mercy of big business. I’m therefore pleased to see continued traction by government on addressing delayed payments by larger companies to small business suppliers.
It’s not as though small business is asking for anything out of the ordinary. It is only normal terms of trade that is being sought, i.e. pay small business suppliers within 30 days of receipt of an invoice.
Hence, as Chairman of the Small Business Council, I have indeed advocated for regulation of payment times, as the attached Herald article reports.
The impact of cashflow on small business is significant and can be very damaging with knock on effects including inability to pay suppliers, late or unpaid debts, inability to buy new inventory, loss of contracts, and even unpaid staff wages.
I’m pleased Minister for Small Business, Stuart Nash, and Commerce Minister Kris Faafoi are seeking to address this key issue as an unfair commercial practice and I look forward to their announcement next month.