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Writer's pictureElinor Kahurangi

The Funding Inequality Stifling Pacific-Owned Businesses in New Zealand


Pacific-owned businesses in New Zealand face an uphill battle due to an alarming inequality in access to capital and resources. While the business landscape might seem fair on the surface, the reality reveals a different story—a system where funding opportunities and financial support are skewed heavily in favour of non-Pacific businesses, especially those owned by European and Asian New Zealanders. This stark inequality is not just a matter of competition; it reflects deeper systemic issues that continue to disadvantage Pacific entrepreneurs in New Zealand.



The Reality of Limited Access to Capital

It’s no secret that access to capital is a critical factor for business success. However, Pacific-owned businesses in New Zealand often find themselves on the back foot, struggling to secure the financial support needed to grow and thrive. Banks and traditional financial institutions are less likely to approve loans for Pacific entrepreneurs, citing reasons such as lack of collateral or insufficient credit history. This makes it incredibly difficult for Pacific businesses to expand operations, invest in marketing, or even sustain their current levels of activity, as reported by Pasifika Business Advisory.


Government initiatives such as the Pacific Business Trust Loans and a few targeted grant programs exist, but they are not enough. These programs are often underfunded, difficult to access, or overly bureaucratic, adding more layers of complexity for Pacific entrepreneurs already navigating a business environment that often doesn’t cater to their unique needs. In comparison, businesses owned by other ethnic groups, particularly Europeans and Asians, have better access to capital through established networks, venture capital, and private investments, as reported by Pasifika Business Advisory.



The Unequal Playing Field

The inequality becomes even clearer when you look at the broader landscape of business support and opportunities in New Zealand. European and Asian-owned businesses often benefit from deep-rooted networks, better access to mentorship, and a higher level of investor confidence. These networks open doors to funding, strategic partnerships, and growth opportunities that Pacific-owned businesses rarely see. The problem is not just a lack of capital—it’s the systemic exclusion of Pacific businesses from the very spaces where opportunities are created and sustained.


Moreover, the overrepresentation of European and Asian businesses in decision-making bodies—such as chambers of commerce, industry associations, and policy boards—further tilts the scales. These groups have more influence over policy decisions that affect business regulations, funding distribution, and market access, often creating policies that benefit their interests more than those of underrepresented Pacific businesses, as reported by Pacific Business Trust.


The Cost of Inequality

This funding inequality has real consequences. It not only limits the growth of Pacific-owned businesses but also affects their survival. Many Pacific entrepreneurs are confined to small, community-focused enterprises that lack the resources to scale up or diversify. In a market where size and scalability often dictate success, Pacific businesses are left to compete with one hand tied behind their back. This inequality perpetuates a cycle where Pacific businesses remain small, underfunded, and vulnerable to market fluctuations and economic downturns, as reported by the New Zealand Treasury’s Pacific Economy report.



This situation isn’t just unfair; it’s a failure of the economic system to recognise and nurture the potential of Pacific entrepreneurs. New Zealand likes to celebrate its diversity, but without addressing these systemic inequalities, that diversity is nothing more than a hollow talking point.


Time for Change

Addressing this "imbalance bullshit" requires more than token gestures or underfunded programs. It calls for a fundamental rethinking of how we support Pacific-owned businesses and level the playing field. This includes creating equitable access to capital, providing culturally appropriate business education, and ensuring representation of Pacific communities in decision-making processes.


It’s time to stop paying lip service to diversity and take meaningful action to support Pacific businesses. After all, a truly inclusive economy is one where every entrepreneur, regardless of ethnicity, has a fair shot at success. New Zealand can and must do better.









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