You’re an entrepreneur looking to start a business in New Zealand. As a country New Zealand offers a lot of great opportunities for start-ups. However, all businesses need money (seed capital) to start off with. Without this seed capital the chances of your business idea taking off are significantly reduced since what you can do to grow your business is severely limited.
The problem is that new businesses often face an obstacle when it comes to funding their business. Saving start-up capital can be difficult, and in a business’s early days, one may need to borrow money from a wide variety of places.
Unfortunately for the brand-new entrepreneur, traditional financial institutions are out of the question. Banks will wait for you to become more established before providing any business loans. At best you can hope for is a business bank account and even then, they will unlikely offer you an overdraft on it!
The good news is that even if banks are out of the question, for New Zealander entrepreneurs with a good business idea, there are other sources of investment that they can leverage.
Angel Investors are an increasingly popular source of business funding, with more and more established angel investors becoming available in markets such as New Zealand.
Due to the buoyancy of the New Zealand economy and with very established industries and an export market, many investors are flocking to the New Zealand marketplace to look for solid investment opportunities and start-up businesses that show promise.
This combined with the modern-day ability to connect with investors throughout the world allows the business funding options for start-up businesses to cover a wider range.
Entrepreneurs in New Zealand can also seek support from the government and organizations set up to help brand new business owners start off.
Not all the schemes offered by the New Zealand government provide actual funding. In many cases the schemes in New Zealand are there to provide some support and mentorship. In summary some of these schemes are as follows:
Regional Business Partner Network – is an organization suggested by the New Zealand government that they recommend as a first port of call. It is an organization that provides business help and support for new businesses.
Māori Business Growth Support – is an organization in New Zealand that helps Māori business owners and entrepreneurs starting out. Another programme designed to help Māori business owners is the Māori Innovation Fund.
Callaghan Innovation is aimed at high-growth companies or technology start-ups. Again, this scheme is designed as a support programme for this kind of business. Callaghan Innovation also provides funding for some tech start-ups such as pre-incubation loans.
Business Mentors New Zealand (BMNZ). As this suggests this is a scheme to provide mentorship for new businesses. The scheme provides six months of help for new business owners.
The Work and Income scheme is for individuals who are on benefits and who want to start a business or become self-employed. This is a flexi-wage programme that offers some financial support.
When it comes to these programmes most of them do not offer direct financial support and those that do have very specific requirements. Even if your new business meets those requirements, funds can take a while to materialize and the bar is set high to meet the requirements. Ultimately, New Zealand entrepreneurs may want to look at other options for business funding, such as angel investment.
We connect entrepreneurs to thousands of business angels around the world, including hundreds of investors based in New Zealand. If you’re an entrepreneur looking for investment, using the Angel Investment Network can help secure the finance that you need to take your business idea to the next level.