The World Bank Index ranks New Zealand the top place for starting a business and for the ease of doing business. And as the capital of New Zealand, Wellington brings a lot to the table for business owners in the city. With a population of 492,000 and growing, it’s the second most populous region in the country. Wellington businesses contribute 13.5 per cent to New Zealand’s economy, and productivity in the city is almost 30 per cent higher than the national average. Add to that the benefits of its location, costs, people and government assistance, and Wellington becomes one of the best places in the world to own a business.
Lower Operating Costs
Businesses that need operating space benefit from Wellington’s affordable commercial spaces. In the CBD, the average occupancy cost is $345 per square metre, 46 per cent lower than the cost in Auckland of $533 per square metre. Businesses that don’t need to be in the centre of the city can benefit from further savings by looking at options in regional areas like Hutt Valley and Porirua.
The lower cost of living in Wellington also helps businesses save on labour costs. Generally, salaries in New Zealand are 20 to 30 per cent lower than in Australia, and Australian employers have to pay a 5 per cent payroll tax as well. Other costs, such as power, water, and communications, are also competitive in Wellington.
Great Location
As the capital of New Zealand, Wellington is home to many government departments. For business owners seeking government contracts or requiring government approvals to grow, this location allows easy access to the government connections they need. Similarly, many large businesses have head offices in the capital.
Wellington also has the infrastructure necessary for businesses that rely on import or export. CentrePort is a deepwater port in Wellington Harbour that enables $3.3 billion worth of international exports and imports each year. It’s also the only port in New Zealand that’s able to offer delivery to anywhere in New Zealand within 24 hours.
Talented People
There are three universities and three institutes of technology in Wellington. This may explain why 28 per cent of the city’s workforce have a tertiary qualification, making these workers the most educated in the country. And with more than 40 recruitment companies in the region, there’s plenty of help available for businesses looking to find the right talent.
Wellington also has a good business culture. It’s a compact city, so fortuitous meetings happen regularly, whether you’re in line at a café or walking to your next meeting. There are also a lot of collaboration and innovation hubs, such as Creative HQ, to help businesses make connections more easily. The accessibility of the city also makes it an excellent testing ground for new products.
Government Help
The New Zealand government has made doing business in the country easy, and the city of Wellington has added even more assistance to new businesses. There are a number of programs designed to help business owners expand their operations, including networking events, available business mentors, and help in finding interns and employees. The Business Growth and Innovation team offers advice, and lets business owners discover new contacts in the region to help them meet their business goals. Innovation help and funding may also be available.
Business owners shouldn’t discount the effect a good lifestyle can have on their business ambitions. Wellington is known for its short commutes of 25 minutes or less, giving business owners and their employees more free time. And there are natural wonders close by and great dining in the city to explore during that downtime. Affordable real estate also lessens stress and attracts talented employees. These factors promote a healthy work/life balance that adds to the other elements that make Wellington a great place to do business.
For further information, contact your nearest LINK Business Broking Office.
