Wellington — 23 May, 2023 —Xero, the global small business platform, has issued a challenge to large businesses in Aotearoa, urging them to pay small businesses within 10 working days of being invoiced.
The announcement was made at this week’s Trans Tasman Business Circle event Advancing Aotearoa through the economic challenges of 2023.
Executives from large businesses across Aotearoa were in attendance, joined by Hon Ginny Andersen, Minister for the Digital Economy & Communications, Police, Seniors, and Small Business.
Bridget Snelling, Xero NZ Country Manager, issued the challenge citing Xero research that revealed late payments cost Kiwi small businesses $456 million per year.
“Small businesses across Aotearoa are doing it tough as they take on a range of significant economic challenges like inflation, high interest rates and wage growth.
“By committing to pay invoices within 10 working days, large businesses can help strengthen the New Zealand economy while supporting their suppliers and customers in the small business community,” says Snelling.
This prompt payments challenge comes off the back of Xero’s new NZIER research that outlines Government recommendations to help improve Aotearoa’s declining digitalisation rates.
The report outlines how a 20 percent increase in the uptake of cloud-based digital tools could increase New Zealand’s GDP by $7.8 billion through improved productivity.
“This is a multi-billion dollar opportunity to further digitalise our small business sector and help improve Aotearoa’s woeful productivity rates, which are currently below the OECD average.
“Xero and NZIER have outlined clear steps the Government can take to help small businesses overcome the barriers to digitalisation. In an election year, we think this should be a priority for all political parties.
“Small and large businesses, as well as the Government, must work together to improve cash flow and digitalisation. These are steps we can take to be better prepared for the economic challenges ahead of us,” says Snelling.
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Xero is a global small business platform with 3.7 million subscribers which includes a core accounting solution, payroll, workforce management, expenses and projects. Xero also has an extensive ecosystem of connected apps and connections to banks and other financial institutions helping small businesses access a range of solutions from within Xero’s open platform to help them run their business and manage their finances. For four consecutive years (2020-2023) Xero was included in the Bloomberg Gender-Equality Index. In 2021 and 2022, Xero was included in the Dow Jones Sustainability Index (DJSI), powered by the S&P Global Corporate Sustainability Assessment. Xero is a FIFA Women’s Football partner.
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