Support urged for small firms

Press, 13 August 1980, Page 10

Support urged for small firms

PA Wellington The finance problems facing small businesses are preventing the development of a “considerable untapped export potential” according ,to the report of the small business agency tabled in Parliament. It says financing of small businesses falls “far short of what will be necessary if the full potential of the sector is to be realised.” “Financial markets in : New Zealand are not : structured to deal realistically with the needs of developing small businesses. Consequently the gen- : eral rule is that only those with ‘track record’ or ‘high asset backing’ ’• can obtain their share of instituional finance.”

“Others witii perhaps more valuable innovation, technology. or higher export potential, have thejr growth stifled through lack of the right type of financing at critical stages of development.” In addition to the diffi-

culty of securing finance, small, businesses also lack export marketing services and managerial skills,’ the reports says. • "After almost two ; full years of operation, Small Business Agency . field staff report there is considerable untapped export potential in the small business sector.”

The reports says that two significant factors impede full development of this potential: availability of quality export marketing services to assist those firms which cannot employ their own specialists; and lack of internal management capability to cope with the added complexities of managing production for export. Although the report notes “there are a number of extremely good private sector export trading houses and services,” it says the full development of the export capability depends on the public and private sector providing the necessary support services/ .■ - : . t .