Diverse entrepreneurs drive growth but face persistent barriers.
A major new report has revealed the growing economic influence of ethnic communities, with ethnic-owned businesses contributing $87 billion to New Zealand’s GDP in 2023 — up from $64b in 2021.
The findings, released in The Economic Contribution of Ethnic Communities 2001–2023 report, were unveiled at the Ethnic Xchange Symposium in Auckland, attended by nearly 500 community representatives, business leaders and senior ministers, RNZ reported.
The event comes as New Zealand receives a confidence boost from global ratings agency Morningstar DBRS, which recently assigned the country a AAA credit rating and said the economy is “rebalancing” as inflation eases and financial stability improves.
Untapped $10bn potential waiting to be unlocked
Mervin Singham, chief executive of the Ministry for Ethnic Communities, said the contribution was significant — but far from fully realised.
“That is quite a big contribution,” Singham said.
“Our recent research has highlighted that more can be done to unlock entrepreneurial capability… this is why we have symposiums like this to continue to lift that contribution.”
Ethnic businesses now represent one in five New Zealand enterprises, with Asian-owned firms exporting almost double the national average.
Leaders call for stronger engagement and continuity
Dave Ananth, president of the New Zealand Malaysia Business Association, said deeper and more frequent engagement between government and ethnic communities is essential.
“I think there should be more engagements, not once a year, but more often things like this,” Ananth said, adding that New Zealand businesses could leverage global networks and people-to-people ties.
Investment consultant John Hong said policy consistency and staff continuity inside government agencies were critical.
“There has also been a high level of staff turnover… If an entire agency ends up being staffed with new people… there’s no continuity,” Hong said. “If you don’t know the past, how can you possibly plan for the future?”
Report highlights structural barriers for ethnic women
A second report, Ethnic Women Entrepreneurs, found four in 10 ethnic business owners are women — but many face challenges shaped by the “combined effects of gender, ethnicity, migration status and systemic bias”.
KPMG partner Bineeta Nand urged decision-makers to confront these issues directly.
“Think about those stereotypes and biases that you might have… That’s where we can actually start making a difference,” Nand said.
Singham said ethnic women entrepreneurs excel because they are “highly relational”, but require more targeted support.
Government signals stronger backing for ethnic enterprises
Ethnic Communities Minister Mark Mitchell described ethnic businesses as a competitive advantage for New Zealand.
“We’ve got diasporas with entrepreneurs, businesspeople… with deep connections back to countries that we want to increase our trading relationships,” Mitchell said.
He added that the government is focused on reducing red tape and leveraging these networks through major trade delegations.
Singham said momentum is building but more work is needed, RNZ reported.
“The government is taking into account more of what ethnic communities [and] businesses are saying… but the ethnic community’s voice could be heard a little bit more,” he said.
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