BUSINESS PASIFIKA - DECEMBER 2008
Another challenging and eventful year is nearing an end, with the staff at the Pacific Business Trust looking forward to a well deserved and relaxing break. This summer issue of the Business Pasifika offers an exciting read and a general roundup of an eventful quater for the Pacific Business Trust.
1. From the Board - What a Difference a Day can Make
2. On the Ground - Update from the Cheif Executive
3. Cultivating Potential - A tertiary business challenge with a dfference
4. Pasifika Unlimited Seminar - Be inspired, challenge yourself and achieve
5. Hidden Opportunities - The nuts and bolts of ACC levies
Sit back, relax and grab this essential read for the summer. Enjoy.
From the Board 
Kia orana, Talofa Lava, Malo E Lelei, Ni Sa Bula, Taloha Ni, Fakaalofa Lahi Atu, Kam Na Mauri, Ia Orana, and Warm Pacific Greetings to you all.
“What a Difference a Day can make”
Well it has certainly been a mood for change in the last few Days with the people of the United States moving for change by electing Barack Obama as President, then New Zealand people also moving for change by electing John Keys as Prime Minister and a new National Lead Coalition in Government. All of these decisions will impact on our country and our world as we live in a time of significant change in the world which provides the context for business and businesses.
Last week I saw stock exchanges around the world going down significantly and governments responding to bring stability, then the next day seeing stock exchanges going up. These changes have been difficult to predict at the best of times which in recent days and weeks has lead to a lot of uncertainty in our financial and economic markets.
The reality is for most of this year we have been in an economic downturn both nationally and internationally. We see this reflected in our everyday life of property values declining, petrol prices going up and now heading down, interest rates being reduced, inflation being at its highest (5%) for a few years. As business people, during these times of uncertainty we have to continue to use our common sense and look at strategies to overcome a downturn in the economy. Depending on which industry we are in the economic downturn will affect some more than others, so it is not an easy time. However, as businesses we have to face the brutal realities of what is in front of us, yet keep the faith that our businesses can survive the tough periods as well as the good.
In a recent video I watched, Sir Tom Davis was talking about us as Pacific people, he said “As Pacific people we love to navigate and journey, it is within us. Secondly we are not afraid of the challenges ahead of us in the journey, and, thirdly we expect something to happen when we arrive”. As business people we need to navigate our business journey ahead of us. We need to understand and overcome the challenges in our business and lastly, we have to determine what we expect to get when we achieve our goals. Let me finish with this thought, “Each Day CAN Make A Difference” for you and your business. As we move towards the festive season on behalf of Pacific Business Trust may I wish you and your families a Merry Christmas and a Happy Year.
Kia Manuia,
Hamish A Crooks
Chair
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On the Ground 
Warm Pacific Greetings and welcome to our summer issue. It has definitely gotten hotter and not just in terms of the weather. We have certainly experienced some significant changes since our previous spring newsletter with a global Financial Crisis and a new Government. In our spring issue I was able to highlight the positives achieved by Pacific Peoples in business however it is very clear that our Pasifika owned businesses as well as our family and friends may be facing some challenges over the next 12 – 24 months as a result of the global financial crisis.
Business commentators believe that New Zealand is in a reasonable position to weather the storm and we are now seeing and feeling the effects with unemployment being tipped to increase to around 6 – 7%. Unfortunately this is not helping consumer confidence which has contributed to lower spending and the comments from Maurice Prendergast - CEO of Pumpkin Patch in reporting to their shareholders that “he has never seen such difficult retailing conditions” (NZ Herald, Nov 19).
As one example of what is happening overseas Volvo sold 41,970 heavy trucks in Europe in the 3rd quarter of 2007 but for the same period this year just 115 Heavy trucks were sold by Volvo in Europe (Sunday Star Times Nov 16). This is not an isolated case so there is an opinion that New Zealanders have not yet been seen the full impact of the financial crisis and slowing of the global economy.
What is this “Global Financial Crisis?” Well, in a nutshell both Governments and Banks have allowed increased levels of access to easy credit to very willing borrowers but the asset backing for the loans has ultimately been less than the amount borrowed and in some cases significantly less.
The private sector businesses however is still seen as the key to turning around our economy and locally there are some retail food businesses for example, who are benefiting from consumers who are now shopping around seeking better value instead of just buying all of their groceries from the supermarkets so there continues to be business opportunities despite difficult trading conditions.
For small business in particular if they are carrying a high level of debt compared to their equity and/or if maintaining a positive cash flow going forward is not looking so certain then our recommendation to those businesses that are facing issues, that they are struggling to resolve, is to seek professional advice. Professional advice can include an accountant, lawyer and/or a business mentor however there are a wide range of organisations that can assist depending on scale of the issue or problem that a business is seeking to resolve.
The Pacific Business Trust can assist with matching a suitable business mentor from “Business Mentors NZ” for example with any inquiries or engagement of a business mentor being kept strictly confidential so that your business remains your business. Sometimes we cannot see the wood for the trees and so getting a fresh perspective, useful feedback and some sound advice from a business professional can be a positive turning point whether you are fighting for survival or seeking to grow your business. It is important to know that there is assistance available to businesses that may be facing some issues and also business opportunities so taking action now rather than later could make the difference.
I would like to take this opportunity on behalf of everyone at the Pacific Business Trust to thank all of our stakeholders and clients for their continued support and wish you and your families a very Merry Christmas and a Prosperous New Year.
Richard Reid
CEO
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Cultivating potential 
Some students admit the prizes are their motivation, others admit they’re adventurous spirits and some come along to nurture their closet entrepreneurial drive. For whatever reason, students complete the Plantation Business Challenge and walk away with a new sense of confidence.
The Plantation Business Challenge is a joint venture between the Manukau Institute of Technology, Auckland University of Technology and the Pacific Business Trust. The drive behind this brainchild is to replicate and nurture the unlocked potential of senior students in the Counties region. It is true that everyone is born with a gift, but without the support and guidance needed it becomes difficult to reach your full ability.
The 2008 intake of PBC brought yet another group of talented individuals. Such as Markus Kitione whose group Vast Corp were the winners of the PBT Business Proposal Award. “Protrans Software.” Says Markus. “It is software that you download to your phone that translates various languages. “ The idea behind the software was spurred by the fact that New Zealand is a multicultural country. “As a country we do alright with tourism. The O.E is more popular than ever, we got masses of exchange students, numbers in migration it made perfect sense to us that one of the barriers for all these groups would be language.” The product would enhance overseas experiences so that travellers don’t feel too isolated Markus says.
When asked what the highlights of the challenge were for the carefree group, the first thing that Markus blurts “..highlights, not just the food..” he laughs “ that is a group consensus for sure. Having experienced campus life at MIT and AUT, it was having something cool to do in the holidays, meeting other people from other schools and making new friends who I will be studying with. At the beginning we just assumed that all we had to do was come up with a product and present it. We didn’t realise that we would have to come up with all the marketing ideas and promote etc.”
It was an epiphany for the group once they were actually in the challenge. “We were really lucky to have Essendon to help and mentor us because we just had no idea.” He was not shy about admitting that the Tangaroa seniors had no concept about business or how things really work and says it was a real shock. “Essendon was able to broaden our minds and we learnt a lot of new things. It was a really good test for us”. Says Markus.
Clearly ecstatic about winning the award the senior says, his group felt a sense of relief. “All our hard work paid off. There were a lot of ‘little’ moments during the challenge....” he laughs “..but it was good to know that the time we sacrificed on the proposal paid off in the end. I think our people who came to support us were just as surprised as we were when our team was announced.”
The team was made up of:
“It was an awesome experience. Particularly because one, we won together as a team. Two, Helen won the big scholarship award and three, I won the Lap Top because ........ I was awarded the most valuable player. From having no experience to winning, it was just awesome. The Plantation Business Challenge was an awesome experience it’s one of those things that you get blessed with and hope that it happens again.”
What do the other participants say about their time in the Challenge
Sonya Siale – Manurewa College. Winner of the MIT Gardenia Scholarship
“For me this challenge was actually putting aside my nerves and getting stuck into it. My team worked hard. The whole challenge was an awesome experience I wish I could do it again. I hope future seniors get the opportunity to take part and I hope more businesses support it.”
Lenny Frost – De La Salle College. Winner of the MIT Frangipani Scholarship
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Pasifika Unlimited Seminar
The Pasifika Unlimited Seminar series kicked off in October with a focus on Pacific Women in Business. The participants heard from leading business women Jenene Freer and Caren Rangi. Jenene is the Director of Flossie Media Group and founder of the NZGirl online magazine and Caren is the Director of her own consultancy company Kahui Tautoko Limited and is also a board member of the Pacific Women’s Economic Development Advisory Board. Jenene and Caren were joined on the business panel by the founder of Affirming Works, Emeline Afeaki-Mafileo.
The participants enjoyed and appreciated the experiences that were shared and found good practical value in interacting with the business panel. The business panel drew from their diverse backgrounds to provide a realistic perspective on what it’s like to be a woman in business. The common themes that were coming through centred on having the right attitude, finding and committing to what you’re passionate about, and surrounding yourself with the right people. One of the common challenges that they faced in starting and growing their businesses focused on balancing their business commitments with other commitments such as family and community.
Stay tuned for details on further Pasifika Unlimited seminars coming up in 2009.
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Hidden Opportunities 
Did you know that Small Business Enterprises can get discounts on their ACC levies? Well not many people in the business community did. Why? It’s not that information is hidden. You just have to look a bit closer.
With some businesses struggling more than others during the economic downturn, every bit of help counts. In November collaboration between PBT and Te Puni Kokiri an opportunity for small business owners in the community to attend a road show proved to be a winning formula. The road show provided practical information relevant to the everyday running of small businesses.
Government agencies were present to share their services particular to small business enterprises. They included Accident Compensation Corporation, The Foundation for Research, Science and Technology, Department of Labour, Inland Revenue and the Ministry of Environment.
“Knowledge is power” said one attendee Krishna Datt who runs his own consultancy here in South Auckland. “if you are not sharing knowledge then what is the point?”. And rightly so, the purpose of this collaboration is to inform and provide the tools that could potentially make the difference in a tough environment.
PBT Business Development Manager Essendon Tuitupou says that bringing the roadshow to the Auckland Pacific Community was to gage its value to the Community and assist those who need assistance.
“Based upon the success of Tuesday night it’s most likely we will do this again in the new year, here in Auckland and outside of Auckland. It’s an awesome venture. There is good information that just never occurred to some. For example having a business with a staff count of five that pays less then $100,000 a year in PAYE...one guy here tonight who was struggling with the admin side of his business said was happy to find that he was entitled to the Payroll subsidy.” Says Essendon. (If your business has up to five employees and pays less than $100,000 a year in PAYE you can get a subsidy of $2 per employee, per day to help for a listed PAYE intermediary to do your payroll)
Michael Lim, Maori & Community Relations for ACC fielded multiple questions. Marty Jason from Inland Revenue was passionate about answering questions encouraging the audience to seek them out later if they were not comfortable asking questions in front of a large group. “You can tear us to bits with questions if you like. That is what we are here for.”
Katrina Affleck from the Department of Labour Small Business Information Unit says “The event was a great opportunity to show Pacific and Maori business owners how the Department of Labour can make employing staff and managing health and safety in the workplace much easier.”
The road show stands to benefit anyone with an entreprenueal spirit. It will no doubt add value to your bottom line. Keep an eye out for the next one.
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