New Zealand – it's a great place to start a business (as many of us do) and the latest Grant Thornton Global Dynamism Index (GDI) confirms that this is the 11th best country in the world for supporting and enabling growing companies. Not quite Top 10 perhaps, but we'll take it.
Singapore topped the scale, with Australia in sixth place and the United States 10th.
Mark Hucklesby, national technical director of Grant Thornton New Zealand, said the ratings portray New Zealand’s ability to support dynamic growing businesses in a good light, providing significant comfort on how well placed we are to support growth out of the financial doldrums.
The Grant Thornton Index different draws not only on basic GDP data, but also upon indicators from a variety of sources including the Economist Intelligence Unit (EIU), the World Bank, Thomson Financial, UNESCO and the views of 406 senior executives in 50 countries who were asked to identify what environmental factors they believed impacted the growth of their businesses.
“The results are a positive indicator of the way we do business in this country, although the figures do identify a couple of areas of concern for the New Zealand economy,” he said.
“Five areas were identified as holding the key drivers
to an economy’s dynamism - business operating environment,
science and technology, labour and human capital, economics
and growth and the
financing environment. Within these groups, there were 22 key data points that were analysed to generate the index rankings.
Singapore leads the world with an index rating of (72.1) followed by Finland 70.5, Sweden 69.6,Israel 69.3, Austria 66.1, Australia 65.6, Switzerland 65.1, South Korea 64.6, Germany 64.8, United Stated 64.1 and New Zealand 63.9.
“New Zealand performed best in the labour and human capital area where we were ranked fifth in the world. We were seventh in financing and environment, and ninth in business operating environment.
New Zealand only rated 33rd in economics and growth, however, and 26th in science and technology.
“The knock on effect of New Zealand’s very poor record in R&D is that our growth prospects have suffered.”
Hucklesby said New Zealand needs a paradigm shift in the way we deal with many of our exported products.
"It is a topic that has been discussed in New Zealand for decades, but we still send a large proportion of primary goods overseas with little or no value added. And that is only one area where R&D could benefit the country."Biotech is another good example.”