NZ’s low productivity is often blamed on businesses staying small. That could be a strength in 2026
NZ’s low productivity is often blamed on businesses staying small. That could be a strength in 2026
Publish Date: 2026-01-11 17:59:00
Source Domain: theconversation.com
- New Zealand’s firms often choose to stay small due to lifestyle preferences, leading to low national productivity levels.
- A global trend towards “anti-scale” entrepreneurship shows the viability of small firms with focus on quality, identity, and resilience.
- Artificial Intelligence (AI) enables small, specialized firms to achieve outputs previously attributed only to larger organizations.
- Smallness, when strategically chosen, can improve productivity, innovation speed, and adaptability in volatile economic conditions.
- Successful small economies like Denmark and the Netherlands show that specialization and technological integration are key for global competitiveness.
- New Zealand should rethink support mechanisms for small firms to emphasize productivity, expertise, and global reach, rather than size.
- The challenge lies not in growing larger, but in growing smarter, focusing on specialized, AI-enhanced firms.
