New Zealand universities, easy registration of a company and securing quick construction permits led to the country's position at the World Bank index
While India's new and improved rank 100 at the World Bank's latest ease of doing business index has been ruling popular discourses for weeks, New Zealand, with its first position for two consecutive years, remains the easiest country in the world to conduct businesses.
In fact, the island nation has also ranked first in several parameters determining the final result, such as starting a business, dealing with construction permits, registering property, getting credit and protecting minority investors.
New Zealand's World Bank rank and that is the easiest place in the world to start a new business, reflects on ground with a steady increase in the establishment of new companies in the country following the Global Financial Crisis since 2012.
As per official data, the number of company incorporations in 2014 was around 47,000, it was 50,000 in 2015, 56,000 in 2016 and 59,000 in 2017.
But what is it that encourages such a positive business environment in New Zealand?
A primary yet important step is the registration of a new company. At present, it takes just one working day for someone to register a new company through an online process in New Zealand.
Another crucial step is that of securing construction permits –where India remains at the 181st rank. New Zealand's Building Act contains a statutory requirement for a Building Consent Authority (BCA) is to grant a building consent within 20 working days from receiving the application (residential or commercial). According to New Zealand government officials, most BCAs report high compliance with this requirement.
Officials also said government funding to a range of Research and Development and innovation proposals, and special encouragement to start-ups and early-stage businesses, has been going a long way in firming up New Zealand's position as a top business-friendly economy.
A classic example to support this statement is the Callaghan innovation established in 2013. The government agency backs innovative start-up companies by providing funding for company accelerator and incubator programmes. This also includes a Lightning Lab which works with digital and ICT entrepreneurs to develop their ideas over 12 weeks into an investment pitch.
New Zealand's schools and universities also play a major role in encouraging innovation, ideas and entrepreneurship in students from an early stage.
Explaining the role of universities, a spokesperson from Education New Zealand (ENZ) said that three New Zealand universities, have joined forces to encourage entrepreneurship through an entrepreneurship project funded by the government.
"The project partnering Canterbury, Lincoln and Otago universities has been awarded $3 million from the Government's Encouraging and Supporting Innovation Fund. The goal is to encourage entrepreneurship. This project will facilitate the capture of intellectual property and develop technology-based businesses," the spokesperson said in a written response to a query from DNA.
Explaining further, New Zealand's high commissioner to India Joanna Kempkers told DNA that students who go to those universities go through that programme have all the tools at their fingertips to be able to start a company or a business easily.
Kempers added there is a special visa category for foreigners to come and start businesses in New Zealand.
Another measure taken by the New Zealand government to encourage businesses is the Innovative New Zealand programme under the ministry of business, innovation and employment. Under this, an additional $372.8 million to be invested over the next four years in science, skills, tertiary education, and economic development initiatives, through Budget 2017.
"This continues momentum from the $761.4 million investment made through the Innovative New Zealand programme in Budget 2016, and reaffirms the Government's commitment in growing our science system, producing the 21st century skills New Zealand needs, and encouraging innovation and industry investment for a stronger, more resilient economy," the ENZ spokesperson said.
Another initiatives taken by New Zealand includes an investor migrant programme, aimed at attracting high net worth individuals to bring their capital and business acumen to New Zealand. The country also offers apprenticeships across a range of industries in New Zealand such as agriculture, horticulture and fisheries, construction and infrastructure, manufacturing and technology, which give youths an opportunity to "earn while they learn".
New Zealand also has 11 Industry Training Organisations (ITOs) specialising in training/apprenticeships for various industries. ENZ officials said ITOs are becoming increasingly popular with Indian undergraduate students.
Universities supporting innovation and entrepreneurship
University of Auckland
This New Zealand University features in the latest Reuters Top 75: Asia's Most Innovative Universities rankings. Through UniServices, its commercialisation company, the University connects researchers and businesses, both nationally and internationally. UniServices has, on behalf of the University, over 1,200 active projects with more than 300 New Zealand firms at any one time. In 2016, UniServices created more than 11 businesses to commercialise university research.
University of Canterbury – Centre for Entrepreneurship
The UC Centre for Entrepreneurship promotes development of entrepreneurs through research, teaching and community engagement. It aims at the development of more employable UC graduates with exceptional entrepreneurial capability.
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