The impact of procuring from Māori and Pasifika businesses

Supplier diversity is a proven international practice that has had significant impact for indigenous and minority groups.

Here in Aotearoa, we are just past the starting line of implementing supplier diversity and are already seeing significant social impact of spending with Māori and Pasifika-owned businesses. Amotai is Aotearoa's supplier diversity intermediary, tasked by the government in 2020 with connecting Māori and Pasifika-owned businesses with buyers wanting to purchase goods, services and works. In our role as a connector between buyers (e.g. government agencies, not-for-profits, Iwi and corporates) and suppliers (i.e. Māori and Pasifika owned businesses), we have gathered incredible insights into the value and impact that can be created through intentional buying from Māori and Pasifika-owned businesses.

Top 6 reasons to procure from Māori and Pasifika businesses

Here are the top 6 reasons (in no particular order) why you should look to buy services, goods and works from Māori and Pasifika businesses, backed by New Zealand and international research.

1. Closing the wealth gap in Aotearoa

Supporting the growth and success of diverse businesses and minority entrepreneurship plays a critical role in closing the racial wealth gap. Here and internationally, inequitable access to investment capital and contracting opportunities are major barriers to minority business growth and success. Here in Aotearoa, our experience is that Māori and Pasifika businesses are still untapped change agents for creating a more inclusive, and more sustainable, New Zealand economy.

Not only is successful entrepreneurship one of the main ways Māori and Pasifika can build wealth for their families, their success also means wider community success regardless of ethnic group, and a more inclusive economy as a whole. Whether in Aotearoa or internationally, Indigenous and minority businesses are consistently located in poorer neighbourhoods, meaning they stimulate employment and economic activity where it is needed most. This is why supplier diversity is such an effective way to indirectly invest in poorer communities for inclusive growth and community wealth-building.

2. Higher employment rates for Māori and Pasifika

Unemployment rates for Māori and Pasifika are higher compared to other ethnicities. However, 2022 Te Matapaeroa data from Te Puni Kōkiri shows that Māori and Pasifika businesses are more than twice as likely to hire Māori and Pasifika employees than non-Māori or non-Pasifika businesses. International studies similarly show that indigenous businesses are more likely to create jobs for indigenous people, especially in underserved local communities in need of an economic boost. By supporting the growth of Māori and Pasifika businesses you are supporting employment growth for Māori and Pasifika.

3. Māori and Pasifika businesses create role models, culturally safe spaces, and social value

It is well documented that Māori businesses don’t just focus on the bottom line, but serve multiple bottom lines  - such as commercial, environmental, social, and cultural objectives. New Zealand surveys (BDO New Zealand, 2024) and Amotai’s own research with its suppliers confirm that profit is not the sole driver or even the top driver for Māori going into and staying in business. The intangible social and cultural benefits of indigenous business ownership have been explored by Australian research, which showed that for every dollar of revenue generated, Indigenous businesses created $3.66 of social value (Supply Nation, 2025).

Māori cultural values such as manaakitanga (respect and generosity), kaitiakitanga (guardianship), and whanaungatanga (relationships) have shaped Māori economic relationships for generations, and are increasingly being reflected in business. These values are intrinsically embedded and entwined in our day-to-day lives and create an environment to operate safely as commercial and cultural entities.

Māori and Pasifika business owners are role models in their communities for whānau, community and employees. The NZ Productivity Commission showed that the success of Māori businesses helps light the path for other Māori businesses in their wake. A 2014 study of 324 indigenous entrepreneurs found that nine out of ten acted as positive role models for young people in their communities. International studies have also found that indigenous-owned businesses are more likely to strengthen the connection of indigenous employees to their culture. They provide safe and welcoming spaces in which people can connect with each other and their culture.

4. Innovation

The Productivy Commission report He Manukura - Insights from Māori frontier firms shows that Māori authorities and SMEs are more likely to export and have higher rates of innovation and R&D, than other New Zealand firms. The focus on the multiple bottom line coupled with their long-term view can spur innovation and experimentation.

International indigenous and minority owned research is consistent with these findings. Many minority businesses are also small enterprises that tend to be nimbler and more innovative than larger suppliers. Tapping into diverse perspectives can stimulate new approaches and solutions, breakthrough technology and bring disruptive businesses/ products to market. Rather than relying on one-dimensional insights from less diverse supply chains, working with a variety of suppliers opens the door to fresh and innovative insights.

Deep Dive Division - a company where commercial diving meets environmental science.

5. Competitive advantage

Successful supplier diversity programmes can create competitive advantages and provide significant financial benefits to companies. We are increasingly seeing supplier diversity stated as a requirement of contractors, particularly in public sector purchasing. Companies that build long lasting, quality relationships with Māori and Pasifika businesses will position themselves at the front of the pack for these contracts. In the US, where supplier diversity has been embedded for over 50 years, The Hackett Group research found that up to 10 per cent of sales in the U.S. come with supplier diversity requirements. Failing to implement a supplier diversity programme could mean losing a bid, losing potential new business or losing existing business relationships that contribute to business revenue. 

If that’s not enough, research also shows that diversifying your supply chain can support access to new revenue opportunities, creation of new markets, improved access to, and understanding of an increasingly diverse customer bases, development of robust, competitive, and dynamic supply chains, positive corporate image and brand development, and it can be a drawcard for socially conscious employees, investors, and consumers.

6. Future Aotearoa workforce

Māori and Pasifika populations together are already a quarter of the country’s working age population, and by 2043 will be around 30% of New Zealand workers, but many businesses still struggle to effectively engage, retain and progress Māori and Pasifika talent. Māori and Pasifika businesses are best placed to access and develop the talent of this increasingly important pillar of the nation’s workforce, leading the way for other businesses in the supply chain. Unlocking the potential among Māori and Pasifika benefits all Aotearoa. As the rest of Aotearoa ages, these young, growing populations are crucial to sustaining our future workforce, rate and tax bases.

So, the question should not be ‘Why?’, but ‘Why not?’

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