Entrepreneurship and economic growth : why is New Zealand an outlier? A preliminary analysis

The literature indicates that entrepreneurship and economic growth are closely and positively associated. For four years running, New Zealand has had the developed world’s highest rate of “Total Entry-Level Entrepreneurial Activity” (Acs et al. 2005; Frederick et al. 2004; Reynolds et al., 2004), yet it has slid to the lower ranks in the OECD in measures of economic development. At its level of entrepreneurial activity, New Zealand should have a higher level of economic development if it were to emulate other countries.

We make use of the Global Entrepreneurship Monitor data set, including nascent entrepreneurship rates for 45 countries over the 2000-2004 period as well as variables from standardised national statistics.

The paper uses two approaches. This research first finds evidence for “U-shaped curve” associating entrepreneurship with economic growth. It notes that New Zealand has the greatest deviation from this association compared to other developed countries with similar entrepreneurial rates (e.g. United States, Australia and Iceland). The second approach looks at nascent entrepreneurship as a function of non-economic conditions such as technology, demography, culture and institutions.

This short paper develops the hypotheses and carries out the “U-shaped curve” test. For the time being it leaves the factor analysis of non-economic conditions for another opportunity.

The importance of informal investing to New Zealand's new and growing firms

As part of the Global Entrepreneurship Monitor project, we asked 2,000 adult New Zealanders if they have made a personal investment in a new firm in the past three years as well as the magnitude of their supPort, the nature of the businesses they sponsored, and their relationship with
the recipient. We compared these data on informal investment to data on venture capital obtained from national sources. We are thus able to compare New Zealand's performance to cross-national measures. We also surveyed 20 key informants/experts on questions on financing.
In New Zealand, venture capital accounts for only 0.80/o of total investment in new and growing start-ups. Yet New Zealand is world-ranked in terms of informal investment. In New Zealand, informal investment activity is 3.5olo of the national GDP amount. New Zealand is also a world leader in the prevalence of informal investors (percentage in the adult population). Seventy-three percent of informal investors put their money into a relative's or a friend's business. Fifty-eight Percent of New Zealand's informal investors are female, quite the reverse of the world pattern.

When we compare Australia and New Zealandlo the rest of the GEM world, Australia ranks favourably with the GEM globat measures in terms of venture capital as a percentage of GDp, while New Zealand does poorly. Australia also does about 40olo better than New Zealand in terms
of the amount of VC invested in individual companies. But New Zealand is clearly higher in the measures of informal investment.

We conclude with implications for entrepreneurs, policy makers, educators, researchers, and journalists. In a nutshell, they should pay more attention to the critical role of the four F's - family friends, founders, and "foolish" investors - in start-up ventures. Informal investment is a critical component of New Zealand's entrepreneurial process and thus to its economic growth. Perhaps fifty superstars with extraordinary opportunities will receive financing from the New Zealand Venture Investment Fund to launch their businesses. Meanwhile, the vast majority of firms rely on the 4Fs - friends, family founders, and "foolish" lnvestors.

Indigenous entrepreneurs in Australia and New Zealand : a test of social marginality theory

Focusing on the original inhabits of Australia and New Zealand, we examine the basic precept of social marginality theory, namely whether socially marginalised and disadvantaged entrepreneurs might actually be more likely to start a new venture. Using survey data and in-depth interviews, we find mixed results. For Mäori, their position of disadvantage coupled with a history and cultural attitudes favouring enterprise has led to one of the world’s highest rates of entrepreneurial activity. However, for Indigenous Australians, their disadvantage and marginal status within Australian society, compounded by a continued legacy of inequity and by internal factors, has not encouraged an enterprising culture.

Regulatory and enabling approaches to corporate law enforcement : patterns of litigation 1986-2002 and the effect of recent reforms in New Zealand, Australia and the United Kingdom

Enforcement of corporate rights and duties may follow either a ‘regulatory’ or ‘enabling’ model. If a regulatory approach is taken, enforcement action will generally be undertaken by regulatory agencies such as, in New Zealand, the Registrar of Companies and Securities Commission, the Australian Securities and Investments Commission (ASIC) or the Department of Trade and Industry (DTI) in the United Kingdom. If an enabling approach is chosen, enforcement action will more often be by private parties such as company shareholders, directors or creditors. When New Zealand's company law was reformed in 1993, a primarily private enforcement regime was adopted, consisting of a list of statutory directors' duties and an enhanced collection of shareholder remedies, based in part upon North American models and including a statutory derivative action. Public enforcement was largely confined to administrative matters and the enforcement of the disclosure requirements of New Zealand's securities law. While the previous enforcement regime was similarly reliant on private action, the law on directors' duties was less accessible, and shareholder action was hindered by the majority rule principle and the rule in Foss v Harbottle. This approach is in contrast with that used in Australia and the United Kingdom, where public agencies have a much more prominent enforcement role despite recent and proposed reforms to directors' duties and shareholder remedies. These reforms are designed to improve the ability of private parties to enforce corporate rights and duties. A survey of enforcement litigation in New Zealand since 1986 indicates that the object of a primarily enabling enforcement regime seems to have been achieved, and may well have been achieved even without the 1993 reform package. Private enforcement has, in fact, been much more prevalent than public enforcement since well before the enactment of the new legislation. Most enforcement action both before and after the reform was commenced by shareholders and shareholder/directors, and most involved closely held companies. Public enforcement was largely undertaken in areas such as securities law, where the wider public interest was affected. Similar surveys of Australian and United Kingdom enforcement litigation reveal a proportionally much greater reliance on public bodies to enforce corporate rights and duties, indicating a more regulatory approach. The ASIC and DTI enforced a wider range of provisions, affecting both closely and widely held companies, than those subject to public enforcement in New Zealand. Publicly enforced provisions in Australia and the United Kingdom include directors' duties and provisions dealing with disqualification from managing companies, as well as securities law requirements.

New teachers, professional knowledge and educational reform in New Zealand

This thesis examines the professional knowledge of new secondary school teachers in New Zealand, their negotiation of multiple discourses encountered in policy and practice, and their processes of professional identity formation. It is also a study of policy reform. In New Zealand, as elsewhere, recent educational and social reforms have brought about major changes to the way education is managed and implemented. These reforms emphasise market ideologies promoting consumer choice and responsibility, while measuring and monitoring quality and effectiveness. At the same time, the reforms attempt to alleviate social inequality. Teachers' negotiation of an accountability culture and the dominant equity policies is a major focus of this study. The study draws upon group interviews held with nine new teachers during the first two years of their teaching careers. The group interviews were designed to elicit extended narratives from individual teachers, as well as promote more interactive dialogue and reflections within the groups. Because the interviews were conducted at different points in their early careers, the study also has a longitudinal element, allowing insight into how teachers' views are formed or changed during an intense period of professional learning. Analysis of the teachers' narratives is informed by poststructural and feminist understandings of identity and knowledge and by a methodological orientation to writing as a method of enquiry. The thesis develops three main types of discussion and sets of arguments. The first examines new teachers' negotiation of the 'macro' context of teacher knowledge formation that is, their negotiation of an educational policy environment that juxtaposes an equity agenda with accountability controls. In order to historically situate these dilemmas, the particular political, social and educational context of New Zealand is examined. It is argued that teachers negotiate competing political and conceptual debates about social justice, equity and difference, and that this negotiation is central to the formation of professional knowledge. The analysis illustrates ways in which teachers make sense of equity discourses in educational policy and practice, and the apparent contradictions that arise from placing tight accountability standards on schools and teachers to achieve associated equity goals. The second type of discussion focuses on teachers' negotiation of the 'micro' dimension of professional knowledge, looking closely at the processes and practices that form professional identity. Against stage or developmental models of teacher identity, it is argued that professional identity is formed in an ongoing, uneven and fluid manner and is socially and discursively situated/embedded. It is further argued that professional knowledge and identity are entwined and that this relationship is most usefully understood through analysis of the discursive practices that frame teachers' working lives and through which teachers work out who they are or should become and what and how they (should) think. This analysis contributes new perspectives to debates in teacher education about teacher preparation and the knowledge required of teachers in current 'new times'. The final cluster of arguments brings together these macro and micro aspects of professional knowledge and identity with a case study of how new teachers negotiated a recent educational reform of senior secondary school qualifications in New Zealand. This reform has had a significant impact on secondary schools and on the way teachers, and New Zealanders in general, think about education, achievement and success. It was found that this reform significantly challenged new teachers to question their beliefs about assessment and justice in education, and what counts as success. This case study draws attention to the tensions between equity, academic excellence and standards-based assessment, and contributes to understanding how teacher professional knowledge forms both in the context of a specific educational policy reform and in relation to educational reform in general. This study contributes new knowledge to the formation of teacher professional knowledge and identity in an educational climate of change in New Zealand. The findings offer new insights for teacher educators, policymakers and schools into how teachers build, shape and sustain professional knowledge; how they juggle contradictions between a desire for justice, policy imperatives and teacher education rhetoric; the self-constructed, but contingent nature of professional knowledge and identity; and the urgency to address identity formation as part of teacher education and to take account of the dynamic ways in which identities form. These matters need to be articulated in teacher education both pre-service and in-service in order to address teacher retention and satisfaction, and teachers' commitment to equity reform in education.

They talk the talk, but do they walk the walk? sustainability acceptance is low in German and New Zealand firms

Through the International Sustainability Acceptance Measurement (ISAM), we intend to better understand the level of acceptance of sustainability as a practical management tool in business around the world (www.worldreply.com). It was observed by others that sustainability concepts often stay on a rather general level where it is hard to identify specific indicators and the potential for future development.i In an effort to contrast the level of sustainability in the ISAM countries, the participating universities analyze their respective country data and then co-operate to benchmark and compare this information around the globe. This makes the ISAM work one of the few world-spanning efforts to look at the practical implementation of sustainability.

Are the Australian and New Zealand stock prices nonlinear with a unit root?

Whether or not stock prices are characterized by a unit root has important implications for policy. For instance, by applying unit root tests one can deduce whether stock returns can be predicted from previous changes in prices. A finding of a unit root implies that stock returns cannot be predicted. This paper investigates whether or not stock prices for Australia and New Zealand can be characterized by a unit root process. An unrestricted two-regime threshold autoregressive model is used with an autoregressive unit root. Among the main results, it is found that the stock prices of both countries are nonlinear processes that are characterized by a unit root process, consistent with the efficient market hypothesis.