Māori tech enterprises see growth but face workforce challenges

This year marks a significant milestone for Māori-owned technology enterprises, as highlighted in the 2024 Toi Hangarau report.

The report features 85 tech companies that collectively employ 1,300 full-time equivalent staff. The top 12 highest earners have generated revenues amounting to USD $160.5 million.

Robyn Kamira, CEO of Pua Interface and founder of the report, emphasised that while these companies are increasing their economic footprint, the low Māori participation in the tech sector overall needs to be elevated from an 'issue' to a 'risk'. An estimated 4.8% of the country’s technology workforce is Māori. "Given that the Māori population is around 17%, we might expect a similar proportion in the tech sector," Kamira said.

The report notes that the 24 surveyed "deep dive" enterprises in Toi Hangarau boast an impressive 24% of their Māori workforce in technical roles such as developers, architects, cyber security experts, and IT project managers. This is up from 22% last year and represents a figure over five times higher than the national average.

Tech Users Association of New Zealand CEO Craig Young highlighted the importance of focusing on skill needs in the industry. "Toi Hangarau is an incredibly important taonga for spotlighting Māori tech engagement and for the overall sector in Aotearoa. Understanding and supporting organisations like those included in the report will help us build a vibrant, diverse, and uniquely New Zealand technology sector," he noted.

The Toi Hangarau report is designed to enhance the prosperity and economic impact of Māori-owned tech businesses. It aims to increase the visibility and success of these enterprises by sharing valuable data and insights. These insights empower the enterprises and their supporters to achieve their goals and contribute to New Zealand's thriving technological and business landscape.

Elle Archer, Executive Chair of Te Ao Matihiko, remarked, "It’s clear these businesses are not only expanding their economic reach but also paving the way for greater Māori participation in the tech sector. The report underscores the crucial role of these enterprises in driving innovation, economic prosperity, and inter-generational ownership within Aotearoa New Zealand."

Graeme Muller, CEO of industry body NZTech, commented on the rapid growth of the Mori tech sector, describing it as an area full of energy and opportunity. "It is one of the fastest-growing parts of the tech sector and is creating tech that is good for the future of Aotearoa and good for the world," he stated.

The report underscores the ambitious goals set by Toi Hangarau companies to generate economic value and highlights their pivotal contributions to fostering a prosperous New Zealand. While the number of Māori technology businesses and their revenues are growing, there is a need for accelerated growth. The report identifies areas where these enterprises excel, potential growth opportunities, and how they are building their Māori tech workforces.

Marissa Brindley, Head of Tech & Innovation at Tātaki Auckland Unlimited, stated, "As a supporter of Māori-owned tech enterprises, Toi Hangarau empowers Tātaki Auckland Unlimited to identify strategic areas where our influence can help drive sustainable economic growth and foster innovation, enriching our communities."

The report also delves into the rapid technological advancements faced by Toi Hangarau enterprises, particularly in Generative Artificial Intelligence (GenAI). It offers predictions, trends, and strategic guidelines to help navigate these advancements. Brindley added, "Toi Hangarau is an important resource, rich with valuable data and insights. It highlights the growth of Māori-owned technology businesses and showcases their substantial economic contributions, which are pivotal to the success of the technology industry at large."

According to the key findings, there are 85 Toi Hangarau enterprises in 2024, up from 72 in 2023. The oldest enterprise boasts 51 years of operation. Collectively, these enterprises represent 909 years of business experience and employ 1,300 full-time equivalent staff and contractors. There is a notable trend towards global markets, with 35% of enterprises participating internationally, including 42% of the 12 highest-earning enterprises with revenues over USD $5 million. The combined estimated revenues of these 12 heavyweight enterprises is USD $160.5 million, up from last year's USD $120.4 million.