Are we stranded as a nation?
Is the grounding of the Interislander Ferry 'Aratere' the ultimate symbol of the state of NZ right now?
We've got chronic aging infrastructure and underinvestment (the Aratere) leading to negative consequences for all (the crash into and disruption of our beautiful landscape and people in this country).
All we hear about are slashes, cuts and reductions.
It doesn't matter what side of the fence you sit on, there's pessimism all around at the moment.
Well, I refuse to buy into it. I'm an eternal optimist. But we won't grow our country and rise the tide of all creatures in NZ (humans, birds, insects and all!) by focusing on what we'll stop doing, instead of what we'll start or continue doing.
What we need more of are:
Exports.
Growth.
Productivity.
You can't slash your way to success.
What a better contrast for an optimistic future for NZ than the report published last week by Bruce Jarvis and the kiwiSaaS Community on SaaS: '2024 Insights from the Cloud'
It's full of valuable info (link below) not to mention the amazing fact that the SaaS sector has grown 2.5x faster than NZ's wider export sector over the past 20 years.
Below, I've summarised 10 amazing insights about the thriving #SaaS sector from the report.
The irony shouldn't be lost here: the funding for KiwiSaaS has been cut too.
While they'll be sorely missed, I have no doubt in the innovation, jobs, and growth that SaaS and tech can and will produce for Aotearoa.
I hope that these facts let at least one person turn that frown upside down.
Onwards and upwards! 🚀
1. Economic Contribution: New Zealand's SaaS sector generated $3.6 billion in revenue in 2023, primarily from exports.
2. Growth Rate: The sector has experienced a 15% CAGR since 2016, with high-growth companies achieving an 18% CAGR.
3. Global Reach: SaaS businesses in New Zealand have the potential to reach global markets without the constraints of physical exports.
4. Employment: The sector is highly productive, generating an average of $214,802 in revenue per full-time employee.
5. Revenue Distribution: The high-growth segment, consisting of companies generating $10m+ ARR, produces 68% of the sector's total revenue, with 7 new companies added to that segment annually.
6. Challenges for SMEs: 90% of SaaS companies are small to medium-sized enterprises still figuring out how to scale up.
7. Knowledge Exchange: Universal access to knowledge and peer support is crucial for the growth of SaaS SMEs.
8. Sector Growth Potential: SaaS export-led added-value is projected to increase at an 11% CAGR, contributing significantly to New Zealand’s GDP by 2030.
9. Productivity Gains: SaaS companies in New Zealand enhance national productivity by offering innovative solutions that streamline operations and reduce costs.
10. Global Market Share: New Zealand’s SaaS sector captured 1% of the global SaaS market in 2020, highlighting its potential for substantial international growth.
Why not both? Where does the SaaS number come from? How has NZ's performance compared with other countries?