- 44 per cent do not believe the education system gives students the skills they need to work in their business
- 57 per cent say students do not have the skills required to run their own business
- Just 16 per cent say the education system equips students to be entrepreneurs or innovators
Most of New Zealand’s tertiary students will finish exams this week, but the education system has more work to do to prepare them for the job market according to a new survey of small business owners.
The latest MYOB
Business Monitor survey of more than 1,000 small-to-medium
businesses reveals that 44 per cent do not believe that the education
system gives students the skills they need to work in their business,
verse just 18 per cent who say it does and 37 per cent who are neutral
or said they did not know.
MYOB New Zealand Head of SME Ingrid Cronin-Knight says these figures
are hugely concerning.
“The education system needs to ensure that it is providing students with the skills they need to succeed in their chosen career. This survey should serve as a wakeup call.
“Many businesses report they are facing skill shortages. Having
people come through the education system that aren’t work ready only
makes that situation worse.
“It also tightens the job market, with many students potentially
struggling to secure a job in their first year out of study, meaning
they are competing with progressive waves of graduates,” says Ms
Within the survey, the construction and trades sector are the most
concerned about the unpreparedness of students, with more than half
(56 per cent) saying they did not believe that students left study
with the necessary skills. The retail and hospitality sector however,
were the most confident in graduate’s abilities, with 37 per cent
reporting students were aptly skilled.
Concerns about entrepreneurialism and innovation
When asked if the education system gives students the skills they
need to be entrepreneurs and innovators, almost half of all businesses
surveyed believed it fails to do so, verse just 16 per cent that think
“This is disappointing. The students of today will be the innovators
of tomorrow,” says Ms Cronin-Knight.
“We need a strong education system that teaches students about the
theory of business management, provides them with hands-on experience,
as well as developing the critical faculties that drive innovation and
“New Zealand is making real progress here with the likes of
Lightning Lab, Icehouse, the Ministry of Awesome and other
entrepreneurial programmes at many of the country’s tertiary
institutions. However, we need to look at the whole system to see if
there is something more we could be doing.”
Ms Cronin Knight says MYOB works closely with various education
institutions around the country to help the next generation of
students develop the skills they need to be successful.
“We are involved with several activities through various tertiary
institutions to help give students an understanding of the business
world. This includes supporting the National IT Challenge, Brand
Challenge marketing competition, running hackathons, graduate
programmes and sponsoring several awards.”
Several tertiary institutions around the country are also doing
their part to enhance entrepreneurial opportunities for students. The
University of Canterbury’s Centre for Entrepreneurship opened in
February and is one such innovative outlet.
Centre Manager Michelle Panzer says it is focused on building
students employability, innovation skills and entrepreneurship.
“Ever since the earthquakes, the University has looked to provide
courses that ensure our students are ready to succeed in the business
world,” says Ms Panzer.
“Within the Centre for Entrepreneurship we now have an incubator
programme to help students get their own business ideas off the
“In 2017, we will introduce a new ‘Enterprise in Practice’ course to
give students the chance to apply their academic skills and knowledge
to managing a practical project for a new or existing for-profit
business or social enterprise venture.
In addition, the University offers the Summer Start-Up Scholarship.
It provides a successful student with a $5000 grant to work on a
business idea of their own.
“There are several opportunities out there for students who are
looking to get extra experience in business. All tertiary institutions
around New Zealand have programmes to help students learn the
practical realities of commercial life.”
Only nine per cent of SME operators surveyed said they believed
students entered the workforce with the skills required to run their
own business, while 57 per cent disagreed.
Businesses based in the Hawkes Bay (73 per cent) and Wellington (61
per cent) were particularly skeptical, with a large majority reporting
they did not think students had what it took to become successful
Within the industries, 65 per cent of construction and trade SMEs
felt the same way.
“While these statistics do come as a shock, there’s plenty of ways
to fix the problem,” says Ms Cronin-Knight.
“There are many great examples of young people starting up their own
businesses, so it’s not all doom and gloom. Take James Koo for
example, he started his own university printing business and it has
become so successful it has recently moved into larger
Mr Koo co-founded Auckland based Niesh last year with the ambition
to make life easier for students by offering them a free printing
“At Niesh, each student gets 100 free pages of printing per month,
funded with a banner advertisement along the bottom of each page,”
explains Mr Koo.
Mr Koo says it was the plight of fellow students that got the
innovation ball rolling.
“One of our co-founders had limited funds in the lead up to exams
and was caught between the decision to print past papers for his
study, or buy food. He chose to feed himself but later wondered if he
could have achieved better marks in his exams if he’d opted for the
Since its launch, Niesh has grown rapidly, from a small operation
borrowing the space of a friend’s shop, to a fully-fledged business
occupying its own premises and there are ambitions to grow it even
“We think there are three key elements that make for successful students: being financially stable, achieving academic excellence and building solid connections. We would like to spend time focusing on the latter two here at Niesh,” says Mr Koo.
As a student, Mr Koo studies a double degree in commerce and science
at the University of Auckland, he believes the New Zealand education
has some way to go before it can adequately prepare students for the
world of work.
“For specialised occupations such as lawyers, doctors, accountants,
university study is essential. But for the likes of business students,
I’m not sure the fit is quite right.
“At university a lot of what you learn is theory based with limited opportunities for hands-on education. Being in business myself, I’ve learned that often the theories you’re taught can’t be implemented straight away anyway. Really, the best way to learn is from experience.”
For further comment or other information please contact:
MYOB NZ Communications and Public Affairs Manager Conor Roberts
M: 021 124 6004 / E: firstname.lastname@example.org
The Agency Communications Limited Director Gerard Blank
P: 03 341 5841 / M: 0275 243 629 / E: email@example.com
MYOB (ASX:MYO) is a leading cloud based business management
solutions provider. It makes business life easier for approximately
1.2 million businesses across Australia and New Zealand by simplifying
accounting, payroll, tax, practice management, CRM, websites, job
costing, inventory and more. MYOB provides ongoing support via many
client service channels including a network of over 40,000
accountants, bookkeepers and other consultants. It is committed to
ongoing innovation, particularly in cloud computing solutions, and in
2015 was awarded the BRW award for the most innovative large company
for 500+ employees and placed 2nd in BRW’s Most Innovative Companies
Award list across all categories nationally. For more information,
visit myob.co.nz or follow @MYOB on Twitter.
About the MYOB Business Monitor
The MYOB Business Monitor is a national survey of 1,000+ New Zealand small and medium business owners and managers, from sole traders to mid-sized companies, representing the major industry sectors. It has run since 2009, commissioned to independent market research firm Colmar Brunton. This most recent survey ran in July/August 2016. The Monitor researches business performance and attitudes in areas such as profitability, cash flow, pipeline, technology usage and the government. The weighting of respondents by both geographical location and sector is based on overall market proportions as established by Statistics New Zealand and is drawn from an independent survey group, which includes both MYOB clients and non-clients.