Growing a startup overseas can be tough, but the experiences and insights from seasoned entrepreneurs offer essential guidance. Richard Liew, founder and editor of NZ Entrepreneur, shares his extensive knowledge on the evolution of New Zealand’s startup ecosystem, the unique strengths and challenges faced by Kiwi entrepreneurs, and the role of government support. Through success stories and practical advice, this blog delves into the key elements that can help NZ business owners and startups thrive in global markets, providing a behind-the-scenes look at the dynamic world of NZ entrepreneurship.
Richard Liew is the founder and editor of NZ Entrepreneur, a leading platform dedicated to inspiring, educating, and informing New Zealand's entrepreneurs. With over two decades of experience in building and supporting startups, Richard has been a pivotal figure in the NZ startup ecosystem. NZ Entrepreneur provides valuable resources, insights, and connections to help Kiwis turn their innovative ideas into successful businesses. Through his work, Richard continues to foster a vibrant and dynamic entrepreneurial community in New Zealand.
Over the past 20 years, New Zealand’s startup ecosystem has transformed significantly. Two decades ago, the term “startup” was barely used, and the entrepreneurial landscape was relatively underdeveloped. Today, startups are recognised as vital contributors to the economy, with widespread support from both the public and private sectors.
One of the most notable changes is the increased awareness and understanding of the role of entrepreneurs. Programmes like the Icehouse incubator, which began in the early 2000s, have played a crucial role in nurturing early-stage businesses. Additionally, government initiatives such as Callaghan Innovation grants and regional innovation hubs have provided essential resources and support.
The mainstream acceptance of entrepreneurship has also grown, with more educational institutions offering courses and degrees in entrepreneurship. This shift has fostered a more vibrant and dynamic startup culture, making it easier for new founders to find the encouragement and resources they need to succeed.
"We are epic at just innovation, creative problem solving. We all know about our no.8, DIY mentality. We're famous for it worldwide because we're able to look at problems and oftentimes solve it in the most simple, obvious fashion. We don't need to over engineer or overbuild or whatever that'll do."
Kiwi entrepreneurs are renowned for their innovative problem-solving skills and creative approaches. The famous “number eight wire” mentality embodies the resourcefulness and ingenuity that New Zealanders bring to their ventures. This ability to devise simple, effective solutions has led to significant achievements across various industries.
However, these strengths are paired with notable challenges. One major hurdle is scaling businesses beyond the local market. While Kiwi entrepreneurs excel at launching startups, maintaining the ambition and drive to expand globally can be difficult. Richard Liew notes that the DIY mentality, while beneficial in the early stages, can sometimes hinder growth when it requires delegating and building larger teams.
Another challenge is overcoming geographical isolation. Despite digital advancements, being far from major markets still presents logistical and networking difficulties. To thrive, Kiwi entrepreneurs must balance their innovative spirit with strategic planning and a willingness to seek support and collaboration.
New Zealand has produced several startups that have successfully expanded into global markets, serving as inspiration for aspiring entrepreneurs. One standout example is Dominate Hair Products, which began in a local barbershop. Founder Shane Young's innovative formulations have grown into a multimillion-dollar business, now expanding into major markets like the US.
Another notable success is 42 Below Vodka, which started as a small operation in Wellington. Through clever branding and strategic marketing, founders Geoff Ross and Justine Troy transformed 42 Below into a globally recognised premium vodka brand, eventually selling it to Bacardi.
Allbirds, co-founded by Tim Brown and Joey Zwillinger, is an eco-friendly footwear has captured international attention, becoming a favourite among celebrities and sustainability advocates. Allbirds’ IPO on the US stock market highlights its impressive global reach.
These examples demonstrate that with vision, innovation, and determination, Kiwi startups can achieve remarkable international success.
"I think as an entrepreneur, your job is to seek out and find and absorb the information that's going to help you no matter where it comes from, as far as, government initiatives."
Government and regional programmes can play a role in supporting NZ startups. Initiatives like the Icehouse Programme have been instrumental in nurturing early-stage businesses by providing mentoring, resources, and networking opportunities. Since its inception in the early 2000s, the Icehouse has helped numerous startups gain a foothold in the competitive market.
Callaghan Innovation offers a range of grants and support, including R&D funding and Trailblazer grants, which are essential for startups looking to innovate and scale. These grants provide the financial backing needed to develop new products and enter new markets.
Regional innovation hubs, such as Startup Queenstown Lakes, offer localised support tailored to the unique needs of entrepreneurs in different areas. These hubs foster a collaborative environment, connecting founders with mentors, investors, and other resources necessary for growth.
By leveraging these programs, Kiwi entrepreneurs can overcome initial barriers and set the foundation for long-term success.
Richard Liew’s key advice for aspiring entrepreneurs is to prioritise continuous self-improvement and learning. He emphasises the importance of developing oneself alongside the business, as personal growth directly impacts entrepreneurial success. This mindset helps founders navigate challenges and seize opportunities effectively.
Another critical aspect is the growing awareness of mental health and well-being among entrepreneurs. The pressures of running a startup can lead to burnout and stress, making it essential to maintain a healthy work-life balance. There is now greater support and resources available to help founders manage their mental health, fostering a more sustainable entrepreneurial journey.
Looking ahead, the trend towards increased access to entrepreneurial education is promising. With more programs, courses, and resources available online, aspiring entrepreneurs have unparalleled opportunities to learn and develop their skills. This democratisation of knowledge is empowering more Kiwis to turn their ideas into successful businesses, fuelling the growth of the NZ startup ecosystem.
By understanding the evolution of the NZ startup ecosystem, leveraging strengths while addressing challenges, learning from notable success stories, and utilizing government and regional support, entrepreneurs can better navigate their journey. Emphasising continuous self-improvement and mental well-being is crucial for long-term success. As the startup landscape continues to evolve, embracing these strategies and trends will help kiwis thrive in global markets, contributing to a dynamic and robust entrepreneurial community.
