Ethnic People in Commerce EPIC NZ
ABOUT THE OFFICE OF ETHNIC AFFAIRS The OEA is focused on people whose culture and traditions distinguish them from the majority in New Zealand. Our purpose is to contribute to a strong, self-directed ethnic sector and to promote the advantages of ethnic diversity in New Zealand. Since one of these advantages includes the economic growth potential of our multicultural population, OEA is committed to creating opportunities in which such benefits can be unlocked. Since 2004, OEA has worked on a number of projects around trade and the economy. To find out more, visit our website: www.ethnicaffairs.govt.nz CONTENTS Welcome 1 Project background 3 Initiatives within the project 5 Connecting people EPIC NZ Conference 6 Connecting the regions New Zealand and ethnic investor meetings 8 Online EPIC NZ website 10 Everyday how-to Knowledge workshops 11 Getting it right 13 Warren Yee Quick Circuit 14 Moses Ariama Pride Lands 17 Kenneth Leong Euroasia 20 Mitchell Pham AugenASIA 23 Taz Mukorombindo The Canterbury Business Association 25 Key facts and additional research information 28 WL13823
Welcome The Office of Ethnic Affairs (OEA) actively promotes information on the benefits of diversity to the New Zealand public in order to promote acceptance and respect for diversity. When New Zealanders see how ethnic diversity adds value to our country, it becomes much easier to create an environment of inclusion for all people, irrespective of national origin, colour, or creed. One of the ways OEA promotes this is to create development opportunities in intercultural competence. Greater understanding and skills in this area allow for more effective and meaningful communication across cultural boundaries, and can lift organisational performance through increased productivity and innovation. Furthermore, this level of effective workplace integration leads to stronger connections for individuals within their community as a whole. When employers recognise these benefits and have the tools to work effectively within a diverse workforce, they will be more likely to employ people from diverse backgrounds. This will lead to a wider range of employment opportunities for a range of ethnic communities in New Zealand. OEA also aims to help maximise and strengthen ethnic people s networks and skills for domestic economic gain. It involves working with many organisations to build connections between business communities, economic development agencies, chambers of commerce, and mainstream business services and support networks. This empowers ethnic communities through increased government responsiveness, and maintains New Zealand s reputation as a harmonious country. 1
All of these goals have led to the delivery of the Ethnic People in Commerce, New Zealand (EPIC NZ) project (formerly called Building Capacity for Migrant Entrepreneurs) whose audience comprises of ethnic small-medium enterprise, and ethnic entrepreneurs and start-ups. Initiatives delivered through this project include an online database to connect migrant and mainstream businesses for mutual support and mentoring, and a series of public workshops. These workshops provide ethnic and mainstream business communities a point of contact with various economic related government agencies that can assist them in increasing the effectiveness of their business. Apart from capability building, the workshops also provide a networking opportunity between ethnic and mainstream businesses. This publication is part of the initiative also providing small-medium businesses with a snap shot of the tools available to help them, and some examples of businesses that are getting it right. 2
Project background In 2010, the Office of Ethnic Affairs held business forums to connect New Zealand-based businesses with migrant/ethnic business, and to maximise the trade relationships New Zealand has with China, ASEAN and India. Some key themes began to emerge that we wanted to share with all New Zealand business owners. Many New Zealand businesses struggled to successfully do business with Asian businesses largely due to a lack of understanding of business cultures and systems. A stronger understanding between Asian businesses and investors and New Zealand businesses who require advice or guidance on working in Asian markets could help to overcome this challenge. The relationships that New Zealand has with many countries are strengthened through building on existing business relationships. From here, this project was started its vision being to connect and strengthen relationships between New Zealand and international businesses through understanding, sharing, and guidance. Ethnic local businesses + = International Mainstream Maori, Pacific, and Pakeha connections 3
It s all about creating international connections through our existing local diversity. The target audience for this project comprises of: ethnic and mainstream businesses students (including international students) academics and relevant economic development government agencies. We re working closely alongside ethnic and mainstream business leaders, regional chambers of commerce, CEOs of business associations and councils, economic development agencies, and regional universities (young business leaders and young entrepreneurs). 4
Initiatives within the project This project is made up of a range of components and will be made available to as many New Zealand business owners as possible. 5
Connecting people EPIC NZ CONFERENCE The first EPIC NZ Business Conference was held on 18 May, 2012 in Auckland with over 300 business leaders from various ethnicities, backgrounds, and industries in attendance. The conference was a forum for New Zealand-based ethnic and mainstream business leaders, academics, and government agencies to discuss how best to support and tap into the potential within the ethnic SME sector. The conference provided an opportunity to discuss how ethnic and non-ethnic businesses can work together to grow New Zealand s trade and investment in high-growth markets in the Asia-Pacific region. This conference is a multi-agency collaboration project involving the Office of Ethnic Affairs, Ministry of Foreign Affairs and Trade, New Zealand Trade and Enterprise, Ministry of Economic Development/ Inland Revenue, EDANZ, and the Business Associations. All presentations from the 2012 conference are available on the EPIC NZ website, and the OEA intends to continue staging conferences like this as often as possible. 6
Feedback from participants include: The topics were relevant and timely. The chance to network and share insights with inspirational speakers was invaluable. A very good start in an area that needs a lot more concentration. I made good connections and would have loved to have the presence of Kiwi businesses and employers to enhance that collaboration and bridge the gap between migrants and New Zealanders. I was able to glean so much insight about the issues, challenges, and also opportunities presented by the speakers and the contributions from participants throughout the event. The outcome was greater than what I expected because of the synergy and passion. 7
Connecting the regions NEW ZEALAND AND ETHNIC INVESTOR MEETINGS This initiative is aimed at forging strong economic working relationships and partnerships with regional and local councils, regional economic development agencies, and New Zealand mainstream business communities, together with respective ethnic business councils and entrepreneurs. We do this by arranging visits and meetings between New Zealand businesses and ethnic investors for them to explore business opportunities in specific sectors. So far this initiative has already led to a range of joint venture projects including the production of a television series for Chinese Television. The Office delivers this initiative in collaboration with the Economic Development Agencies of New Zealand (EDANZ). 8
The first visit was to Nelson in 2011 where investors explored opportunities in the aquaculture and agriculture sectors. During this visit all of the Asian delegates found new business interests which they would never have known existed otherwise. During their visit to the region, Asian entrepreneurs visited local businesses with an aquaculture and horticulture focus. It just goes to show we needed to hook into the right channel to get the right content. We are all very excited. There are businesses from the visit that we are going to have more conversations with, and we ve made plans to contact similar businesses in the area through our newly found friends. Delegate Following on from the Nelson visit, a second visit took place in mid-april 2012 to the Bay of Plenty, namely Rotorua, Kawerau and Taupo. 9
Online EPIC NZ WEBSITE Migrants to New Zealand have a wealth of skills and experience gained from working in their countries of origin (for example, knowledge of local customs, language, and business contacts). They just need a place to share the information! OEA have developed a business matching database that sits within the www.epicnz.co.nz website to facilitate a matching of ethnic business contacts with local business looking for particular skills, experience, or networks in specific countries/regions. It will also provide ethnic SMEs with essential information about doing business in New Zealand and connect them to relevant government agencies. The database concept is a market-driven one. The Office received feedback from both ethnic and mainstream businesses about the need for such a dataset during a series of Asian-themed business forums hosted by the Office in 2010. This website has room for growth to incorporate many practical features including language translation capabilities and an interactive business forum. To date, over 200 businesses have registered on this database. 10
Everyday how-to KNOWLEDGE WORKSHOPS Skilled and entrepreneurial migrants often have little knowledge about undertaking business in New Zealand. This includes setting up a business, trading and exporting products, developing business infrastructure (IT systems, innovation, and research and development), and connecting with non-migrant business communities. To build their knowledge, migrants running business rely on their internal networks for advice and support, rather than on external networks to gain a foothold in the economy. Knowledge workshops seek to enable the migrant and ethnic business community to: learn more about the various services that relevant government agencies can provide to assist in increasing the effectiveness of their business establish and develop a point of contact with various economic focused government agencies communicate directly with various economic government agencies about their challenges in operating in New Zealand (for example, what their business networks are like and how they work, who they should get advice from, what will help them to succeed and so on). Eight workshops have been held in Auckland, Wellington and Christchurch to date, with a total of 155 participants attending the workshops. We intend to continue developing these opportunities as this project grows. 11
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Getting it right 13
Warren Yee QUICK CIRCUIT Quick Circuit specialises in the design and manufacturing of electronics for a range of New Zealand and overseas businesses. With a key focus on quality and customisation, and making it easy for their customers, Quick Circuit has carved out a strong market hold in New Zealand s electronics industry. But there s more to the business than just fantastic products. Quick Circuit s ethnically diverse workforce are one of the key factors driving their success in New Zealand today. Warren Yee, the current Managing Director of Quick Circuit came on board in 2004. Since taking this role he has gained some valuable insights, and believes that the global and diverse workforce, community, and industry have contributed to the company s success. The staff who work in the office and on the assembly line at the factory come from a wide range of ethnic backgrounds. Most of the staff are from Asia, particularly China, India, Japan, and Korea though many more ethnicities are represented in the business. As to why this is, Warren has found that when it comes time to hire, generally Asian applicants have more experience in the industry, a strong work ethic, and the right attitude for the business. Generally, New Zealanders don t have a strong desire or the skills required to do the grunt work required to put our product together. For people born in New Zealand there are no courses related to electronics manufacturing, and their training has to come from on-the-job work experience. The work environment is one where all staff are encouraged to celebrate their diversity. On the factory floor the national flags of all employees are hung around the ceiling. When someone from a new country comes on board, their flag goes up. From Chinese New Year celebrations to 14
morning teas for the Diwali festival, the staff at Quick Circuit don t just express their cultural identity but share it with others. Hanging the flags keeps our diversity present and front of mind, and provides another way for our staff to feel a connection with where they have come from. Our staff initiate their own cultural celebrations too. Managing a diverse workforce presents both challenges and opportunities. For Warren, a key factor for success has been to create an environment where people feel confident and motivated to speak up and share their ideas. It s all about taking the time to ask specific questions and seek feedback. Our staff have brilliant ideas, but speaking up to share them isn t always first nature for them, because of their cultural beliefs. We want to encourage and give our staff confidence to share those ideas. In response to feedback from staff, Quick Circuit also have a policy of speaking English on the factory floor. We try to break down language barriers as much as possible. Part of this is a health and safety issue, and part of this is to help and encourage staff to share a solution they might be discussing in a way everyone can understand. It helps the whole culture of the company, because people don t feel like they re missing out, aren t being included, or aren t able to understand vital information for them to do their job. 15
Quick Circuit is also doing business internationally, and finding new and effective ways of becoming a part of a diverse global community. Whether it is liaising with a supplier, or selling to an off-shore customer, successful relationships with off-shore businesses underpin much of what Quick Circuit is able to achieve. For Warren, working within a culturally diverse workforce is one of the keys to their success in this area. It s a no-brainer. Through our diversity we re able to support our customers and knock down barriers. The possibilities are limitless. When international businesses come and visit, Quick Circuit staff can act as interpreters, spend time face-to-face with customers easily, and carry out business as usual. Diversity in New Zealand means that Warren and his team already have what it takes to work internationally with customers and suppliers. We communicate frequently with Asian and European suppliers, predominantly dealing with sales reps. We have an office in China with five staff. Three of them are fluent in English and we talk to them nearly every day. We travel back and forth up to five times a year. For Quick Circuit, the office in China, helps staff to liaise with suppliers and more easily procure international business. Ultimately Quick Circuit are responsive to the needs of their customers no matter where they are from. We re flexible, so our customers don t need to be. We work with our customers to get them what they want. Quick Circuit is able to do that by using its ethnically diverse workforce s skills and work ethic both on the factory floor and to strengthen international business relationships. 16
Moses Ariama PRIDE LANDS Pride Lands is a childcare organisation with a difference. Based in Berhampore, Wellington, it is the brainchild of African-born Moses Ariama, an immigrant who is passionate about making a difference in the lives of young people. Pride Lands offers care for children aged 5 15, at a price parents can afford. Its ever-expanding list of services includes before- and after-school care, exciting holiday programmes, and in-home care. I say to the children you have legs, you have arms, you have books. Learn, make something, run. Moses was heading down a different career path, completing his internship at Wellington hospital with the goal of becoming a paediatrician. One day in 2006, he realised medicine wasn t for him. The cycle was too repetitive and constrained, and there was no room to spread your wings. I wanted to make a real difference in the lives of young people. Before embarking on his medical studies, he had worked as an instructor and group leader with children in Africa, the UK and Australia. But in 2006 he decided it was finally time to make a proper difference. Pride Lands started small, with Moses running an after school care programme at Cardinal McKeefry School in Wellington. The programme was a great success, with the role doubling within the first year and great feedback from parents and the school. The programme has expanded into other schools in the area as parents and schools have heard good things about Moses and his business. 17
Berhampore School s principal approached me and asked me to set up a programme there. The principal sited the low decile community with many refugees. I said I wasn t interested in money, but in providing a service at a level parents could afford. I want to help people and by thinking outside the box I have found ways to support them. Although the Pride Lands team is putting children before results, the business is performing, and its profitability has been growing steadily each year. So what is the secret to its success? Moses feels that both having a clear vision for the future that balances growing as a business but retaining the quality of their services and focus on diversity are key. Their growth as a business has been built on investment in and support of the community many of whom have low incomes, are immigrants, and are refugees. Pride Lands is also supported by a strong and diverse team including staff from Africa, America, Jordan, Lebanon, India, Sri Lanka, Canada, Colombia, and New Zealand, and they embrace diversity at all levels. Their cubs (the children who attend their programme) are also from culturally rich and diverse backgrounds. People recognised what Pride Lands is about. It s all about people, it caters for everyone. Even my staff are from different cultural backgrounds. The children like that different faces. When people talk about Pride Lands, the first thing most people think about is the different faces the African, Asian, American faces it s a mix. Other organisations don t have that mix. It has made a great impact and is even reflected in the colours in the office. It s vibrant and engaging, filled with children s art work, lion toys and costumes. 18
In 2010 Moses created the Pride Awards, recognising young people for their achievements in areas like overcoming adversity, and caring for others. The Oscar-like event brings communities together and is something Moses is justifiably proud of. Pride Awards is now a charitable trust, and Moses has developed a sound governance structure and clear lines of separation from his business Pride Lands. Young people are fighting a big battle here. They re struggling, and all we re concerned about is the economy. But the strange thing is, they are the economy! If we do great things for them, inspire them to become better people, they will add things to the economy. Inspiration is the key. It s as simple as letting them know they can do it. 19
Kenneth Leong EUROASIA Kenneth Leong started his career as a consultant in the finance industry, but his passion has always been connecting people across cultures. When Kenneth got the chance to make this his career he jumped at the chance. That was nine years ago. Today, Euroasia is one of the largest language schools in New Zealand. In the last five years, over 3,000 kiwis have completed one of Euroasia s language courses. But growing the language skills of New Zealanders isn t all Euroasia has to offer. It s their unique range of cross-cultural consultation services which sets them apart from the rest of the market. We re in the business of connecting people across cultures. We provide a bridge for people. For some businesses, Euroasia help by providing pre-trip cultural briefings for executives conducting business offshore. For others, the translation of their website into another language helps them to broaden their presence in the market place and connect with a more culturally diverse audience. If it s about cultural connection, Euroasia are able to help. In an increasingly diverse New Zealand it is imperative that we understand how to connect across cultures. It s about being pragmatic. It s about taking advantage of the opportunities that a changing New Zealand has to offer. As New Zealand businesses move and grow offshore, there is a growing need for employers to ensure they are recruiting staff with strong cultural competence skills. Euroasia have helped a number of businesses in this area by providing testing and advice through their recruitment process. 20
Kenneth and his team are able to be flexible and meet the unique needs of most New Zealand businesses thanks to their diverse team of teachers and consultants. When building the Euroasia team, Kenneth looks for people like him people with a passion to connect with those who are different. He sees their role as more than just teachers; they re ambassadors for their country. They re bridge builders and connectors, not just employees. We utilise diversity. Every single person within the company speaks at least two languages, if not three or four. While Kenneth perceives strong cultural competence is a must-have for any business, one of their challenges is to reach people who don t share this viewpoint. This is a common challenge not just for Euroasia, but for all business. Kenneth believes that those who don t believe that cultural competence is important are at risk of closing their businesses off to a range of business opportunities. 21
Whilst it is true that immigrants and people who are new to New Zealand should learn to understand Kiwis better. There is also a responsibility for New Zealanders to take advantage of the diversity and all that it has to offer. It s about being smart. Kenneth believes that the most effective, happy, and successful migrants in New Zealand are those who have not given up their own cultures to be Kiwi. They have instead taken up the best of both worlds. The same is true of successful businesses in New Zealand often embracing diversity is a trademark of their success. Euroasia is founded on this belief. Without diversity we have no business. We are a global business a multicultural business simply because that s the essence of who we are. Without diversity we are nothing. When it comes to practical advice for businesses, and how they can increase their own cultural competence, Kenneth believes it comes full circle back to learning another language. Learning a language is one of the best ways to understand other cultural perspectives, be more culturally aware, and connect with others. By putting yourself in a position where you feel a bit lost, you start to understand the challenges felt by people who are new to New Zealand. This is something anyone can do. 22
Mitchell Pham AUGENASIA If Mitchell Pham has one piece of advice for business owners in New Zealand it is to be relevant. The formula for success in New Zealand is presence + engagement = relevance. You have to be relevant. As soon as you re not relevant you lose your foothold. AugenASIA had humble beginnings started by a group of five university friends, including Mitchell. Their first three years of operation were all about finding what would make their business relevant in the New Zealand market, and working hard to find a product or project that would get them a foot in the door. At the end of their third year each of the founders were able to pay themselves the sum of $12.50 each their company was profitable. Since then AugenASIA has grown in leaps and bounds, partnering with many New Zealand businesses to help them deliver technology solutions that make waves in the New Zealand and global marketplace. To be successful you need not just innovative ideas, but the capacity to make them happen. You also need the ability to scale your products up and down to meet customer demands. Cultural diversity has enabled us to use the resources of other countries to build New Zealand s innovation and our product offering. We can then boost our New Zealand economy by selling those products back offshore. Building strong relationships and partnering with other New Zealand businesses was fundamental to AugenASIA s business growth. And for Mitchell, ethnic diversity was integral for the expansion of the business in New Zealand and offshore. 23
Our office is as diverse as you could probably imagine. We probably have close to 20 different cultures in our offices. They all have different religions, cultures, backgrounds, and experiences. With our customers too, their staff are also more and more diverse. It helps our staff to form personal connections. 2004 marked the first year that AugenASIA started operating internationally. The move to partner with overseas businesses was born of a shortage of the required skills to meet AugenASIA s needs in New Zealand s own labour force. This, together with Mitchell s connection with his family, made Vietnam a fantastic place for AugenASIA to expand to. Currently AugenASIA is going through an explosive growth period. Over the next 18 months Mitchell will be working on ensuring the business infrastructure is strong enough to sustain that growth for the future. We see being organic as being an important part of our business, After 19 years of being in business we find we need to reinvent ourselves and reconnect with the world around us. We believe that in order to grow the New Zealand economy and our society, we need the rest of the world. There is no limit to innovation. Ultimately, AugenASIA are growing their business by helping others to grow. And in order to achieve this, they re harnessing the diversity around them in the marketplace in which they operate, within their own team, and within the offices of their customers and partners. If you, as an organisation operating in Auckland are not diverse, you miss out. 24
Taz Mukorombindo THE CANTERBURY BUSINESS ASSOCIATION When Taz Mukorombindo emigrated from Zimbabwe to New Zealand in December 2002, his arrival and initial experiences were like many other new immigrants to the country. A highly skilled and experienced individual, with a Bachelor of Commerce, Taz struggled to get a job in his field, and ultimately ended up working as a labourer and in various retail positions. Taz decided to go back to study, and while completing his Masters at Massey in New Zealand, was asked to base research around a practical problem. His research led him to investigate the very challenge he was facing what gaps existed between the needs of ethnic entrepreneurs and the current offering of business support services for immigrants in New Zealand. I got a real insight, not just about my own personal employment challenge, but to understand what has worked, what could work, and have a closer look locally and abroad in the area of ethnic entrepreneurs. All countries face these similar challenges. Through his research, Taz found that the most successful programmes had been mentoring programmes, and networking opportunities. Having identified a lack of any such programme in the Christchurch area, Taz decided to be the one to start the change. In 2007 the Canterbury Business Association (CBA) was born. Its main goal is to facilitate the economic wellbeing of refugees, migrants, and minorities in New Zealand. It was always charitable, and was always going to need to be supported by participants and through other initiatives. 25
Its growth has been organic, flexible, and has followed the needs of people in the community to help facilitate a change in whatever way will work. In 2008, CBA offered regular networking meetings, public seminars, and mentoring opportunities to entrepreneurs who were new to New Zealand s business landscape. The biggest gaps for ethnic entrepreneurs are information gaps finding out how to connect and how to get things done. And there are barriers to accessing this information like being new to an area, not knowing the language, and not knowing the right people. In 2010 the mentoring programme was partnered with Christchurch Polytech. CBA was growing in a range of different areas, and continued to identify common problems, industries, and some individuals where they could make a difference. But in February 2011 everything changed when a major earthquake hit Christchurch. The CBA went into action and started running public forums and meetings to raise awareness around the support that was available for local businesses. The earthquake really changed the landscape for us. A lot of my friends had their businesses destroyed or affected. We started running public forums, but it wasn t enough. People still left those meetings with their problems. Wanting to make a real difference, the CBA set up the Ethnic Business Recovery Project. At its heart, the project is a mentoring and coaching programme to help businesses with one-on-one support for recovery. To make sure their message is reaching the right people, they ve employed a range of business advisors from different cultures to help consult and support members of their own cultural communities in Christchurch. As the needs have grown, so have we. 26
While earthquake recovery is an ongoing process and will be a part of the future plans of all Christchurch businesses for some time, Taz is also continuing to develop the business-as-usual support needed for new immigrants in Christchurch. Ethnic people are overrepresented in retail, dairy and are less present in research, development, and technology industries. We d like to get the Ministry to help showcase how the skills new immigrants have could be utilised by research and development, and export and import industries here to assist New Zealanders. 27
Key facts and additional research information The Asia: NZ Perceptions of Asia 2008 survey had some key findings of interest, showing New Zealand s attitudes to diversity are generally very positive. 22.9% of the New Zealand population were born overseas (37% in the Auckland region) and over 200 ethnic groups represented nationally, New Zealand boasts a wealth of diverse knowledge and experience in our multicultural workforce. 75% of respondents see the Asia region as important to New Zealand s future, up from 71% in 2007. 91% saw Asia as an important export market having a positive impact in New Zealand s future in the next 10 20 years. 80% thought Asia s economic growth would have a positive impact on New Zealand. 73% thought free-trade agreements between New Zealand and Asian countries would have positive future impacts for New Zealand. 89% saw future benefits from Asian tourism to New Zealand. 50% of the China-born interviewees travel internationally to support their business and 90% of these participants travel to China. Maintaining overseas Chinese contacts was an important facet of business practice. 40% of the businesses owned by New Zealand-born respondents operate internationally compared with 27% of businesses owned by those born in the Asia Pacific region. 28
Immigration boosts trade and tourism with migrants home countries, and policymakers should recognise the value of that connective tissue. BRIAN FALLOW, NZ HERALD
www.ethnicaffairs.govt.nz Published in 2012 by the Office of Ethnic Affairs 46 Waring Taylor Street, Wellington, New Zealand All rights reserved. For all enquiries contact the publishers. Crown copyright 2012 The Department of Internal Affairs, Te Tari Taiwhenua ISBN 978-0-478-35568-0