The Māori SME Economy

We see a lot of coverage about primary industries in the Māori economy, but the Māori economy is primarily made up of small businesses and sole traders. 22% are in Tāmaki Makaurau and contribute 26% of the $70B national Māori economy.

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the māori economy

The majority of pakihi Māori are small whānau businesses

91% turnover $1M or less annually
86% employ between 1-5 employees
40% are owned by wāhine
THE WHĀRIKI NETWORK

The largest Māori business network in Aotearoa


The Whāriki Māori Business Network is the largest collective of Māori businesses in Aotearoa, connecting pakihi Māori across the motu. As of 10 September 2024, the network comprises 5,446 Māori business owners and professionals, representing 3,261 businesses across 43 industries

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the māori sme economy

Key statistics

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Pakihi Māori SME by Industry
The Māori economy is often represented in the media and by politicians predominantly as primary industries. However, the majority of Māori businesses are small whānau businesses from a diverse range
of industries.

The majority of Māori SME are represented in the Professional, Scientific and Technical Services industries (16%), followed by 14% in the Construction Industry, followed by Retail Trades (13.6%) and Arts and Recreation Services (11.3%).
  • Professional, Scientific and Technical Services : 529
  • Construction: 468
  • Retail Trade: 454
  • Arts and Recreation Services: 378
  • Health Care and Social Assistance: 276
  • Education and Training: 258
  • Accommodation and Food Services: 191
  • Other: 179
  • Information, Media and Telecommunications: 159
  • Administrative and Support Services: 96
  • Transport, Postal and Warehousing: 87
  • Financial and Insurance Services: 78
  • Agriculture, Forestry and Fishing: 42
  • Manufacturing: 29
  • Electricity, Gas, Water and Waste Water Services: 13
Total pakihi: 3,300
Data extracted 10 September 2024
Pakihi Māori SME Annual Turnover
Thirty-nine percent of pakihi Māori report an annual turnover of less than $60,000. This indicates that many Māori are running small-scale businesses, often as side-hustles in addition to other primary employment or while balancing responsibilities such as raising tamariki.

These businesses may serve as a supplementary income source, reflecting the flexibility and resilience of Māori entrepreneurs who prioritize both whānau well-being and financial sustainability.

A significant portion of pakihi Māori, 44%, have an annual turnover between $60,000 and $500,000. These businesses are often more established and may employ more people, contributing to the growing presence of Māori SMEs within the broader economy. This group of businesses likely represents enterprises that have moved beyond the initial side-hustle phase and are expanding their operations, while still aligning with Māori values that emphasize social outcomes alongside economic growth.

These figures highlight the diversity within the Māori SME sector, where businesses range from small ventures that support individual or whānau income to more substantial operations that contribute to wider economic development.
n=445
Data extracted 10 September 2024
Pakihi Māori SME Number of FTE Equivalent
The Māori SME economy in New Zealand is predominantly made up of sole traders and small businesses, with 86% employing fewer than five full-time equivalents (FTE). This reflects Māori economic values, where businesses prioritise the well-being of whānau and hapori, alongside financial success.

While similar to the general SME economy, where 89% of businesses employ fewer than five people, Māori SMEs show slightly higher percentages in the 5-19 FTE range, suggesting potential growth in medium-sized enterprises.

Māori SMEs also benefit from a younger and growing population, which is expected to make up a larger share of New Zealand’s workforce in the future. Between Census 2013 and 2018, the Māori labour force grew by 39%, compared to 22% for non-Māori. This includes a 53% increase in Māori employers and a 56% rise in Māori employees, significantly outpacing non-Māori growth in these areas.

In Tāmaki Makaurau, the working-age Māori population increased by 30%, adding over 28,000 people. This includes a 47% rise in employment, while unemployment fell by 5%. In comparison, the non-Māori working-age population grew by just 9%, highlighting the rapid growth of Māori participation in the labour force.

These statistics illustrate the growing role of Māori in New Zealand’s economy, particularly through SMEs, and reflect the potential for continued growth in employment, business ownership, and community well-being3.
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Data extracted 10 September 2024