Risks

15. The characteristics of Māori business are likely to have both positive and negative effects in terms of the recession. For example, a conservative approach to risks and assets may have already reduced exposure to some of the global and national downturn, and may continue to do so. Opportunities also present themselves during a recession, however, and Māori businesses need to be able to identify and explore these, as well as continuing to manage risks. Those Māori businesses, and those New Zealand businesses, who are best able to manage both innovation and risk, are likely to be more resilient during the recession, and to be able to use the recovery as a springboard for future growth.
16. However, the on-going growth in Māori businesses and entrepreneurial activity will be significantly negatively affected by the recession in the short term due to the following factors:
    • the commodity and tourism sectors in which many Māori businesses are concentrated are particularly vulnerable to the current economic downturn;
    • new Māori businesses may not have the experience, expertise or financial resources to survive difficult times; and
    • like other businesses, Māori businesses may become risk averse, which may limit uptake of those opportunities which are available.