Business Advisor Challenges Growth Ethos in New Zealand SMEs

Business advisor Brad Giles has presented a pivotal challenge to the prevailing growth mindset within New Zealand’s business landscape, where approximately 97% of enterprises are classified as small or medium enterprises (SMEs). In his book, Bigger Isn’t Better, Better is Better, Giles argues that the relentless pursuit of growth can lead to detrimental consequences for businesses, urging owners to reassess their priorities.

Giles, who has extensive experience working with owner-led companies, asserts that the conventional belief that larger businesses inherently perform better is misleading. He emphasizes the importance of creating a thriving business culture that prioritizes employee satisfaction, customer loyalty, and overall well-being rather than simply focusing on expansion.

Redefining Success for SMEs

SMEs are generally defined as businesses with fewer than 20 employees, although some classifications extend to include businesses with up to 49 or 99 employees. According to the Ministry of Business, Innovation and Employment (MBIE), SMEs account for roughly 27% to 29% of employment in New Zealand and contribute more than a quarter of the country’s GDP. Given their significant role in the economy, Giles questions why these businesses should not excel simply by virtue of becoming larger.

He argues that the core issue lies in the mindset that equates size with success. “You probably don’t know when your business has become too big,” Giles states. “What I’ve tried to do is position the book as a mindset shift. If a person looks at their business and thinks, ‘I’m just going to put another zero on the end of my revenue,’ they may miss the bigger picture.”

Giles cautions that many business owners climb the corporate ladder only to realize they have directed their efforts toward the wrong goals. Instead of pursuing growth at all costs, he advocates for clarity about the purpose behind the business. For those who value a balanced life with a dedicated team, the aim should not be global dominance.

The Importance of Culture and Leadership

A successful business, according to Giles, thrives on positive workplace dynamics. He highlights several key aspects that contribute to a better business environment:

1. **Employee Engagement:** Owners should enjoy their workplace and feel energized by their teams.
2. **Customer Loyalty:** Customers should experience genuine loyalty rather than indifference.
3. **Strategic Relationships:** Fostering relationships, rather than merely focusing on scale, should shape business strategies.

“When owners start businesses, they want freedom and a better life,” he explains. “But the world pushes them to chase bigger instead. Bigger might be part of the journey, but it should never be the purpose.”

Giles identifies human nature as a notable factor influencing business success. He argues that strong leadership is essential for ensuring that both staff and customers maintain a positive mindset. He warns that rapid growth can undermine these goals, as businesses without robust leadership risk drifting toward toxicity, mediocrity, and unprofitability.

“Drift happens everywhere,” he notes. “When your singular focus is getting bigger, you supercharge that drift.” He likens owner-led companies to magpies, pursuing every enticing opportunity without proper assessment.

Without accountability mechanisms or oversight, owner-led businesses may falter. “That freedom is why they started the business, but it’s also the beginning of unprofitability,” Giles warns, highlighting the importance of making disciplined decisions rather than impulsive choices.

Giles believes that transitioning from an impulsive risk-taker to a strategic executor is vital for business owners. A well-rounded business not only employs better people but also cultivates better customer experiences. “Bigger might be part of the journey,” he reiterates, “but it should never be the purpose.”

The challenge for many solo owners lies in discerning what will truly benefit their business. Giles underscores the need for discipline and patience as they navigate these complexities, which is precisely why his book is geared toward owner-led companies.

“Entrepreneurs are often compelled by a mixture of genetic predisposition, psychological factors, and environmental pressures,” he says. “This heady mix can lead them to chase growth without considering the consequences.”

He cites Steve Jobs as a quintessential example of this transition. Initially impulsive and without discipline, Jobs demonstrated significant growth after returning to Apple with a newfound focus on strategic execution. Giles notes, “When he came back, he ran Apple like an owner-led company again—with soul—and Apple flourished.”

Through his insights, Giles aims to inspire New Zealand’s SMEs to embrace a model that prioritizes operational integrity and employee satisfaction over mere expansion. He believes that small businesses can thrive by maintaining their unique character and humanity, ultimately creating a more fulfilling workplace for everyone involved.

As he concludes, “The real risk isn’t failing to scale; it’s climbing fast and realizing it’s nothing like the life you meant to build.” With this perspective, Giles encourages the 97% of New Zealand businesses to consider the soul of their operations and the value of being better—not just bigger. His book, priced at NZ$38.99 and published by Evolution Partners, serves as a guide for those willing to reassess their growth ambitions.