Ministry suggests poor management holding economy back

The Ministry of Economic Development has suggested poor management of New Zealand companies is helping hold back economic growth.

In briefing papers to Economic Development Minister, Steven Joyce, it says a recent international study revealed that medium and large manufacturing companies here are not managed as well as companies in other high income countries.

The ministry says people management at most companies is particularly poor and firms that are smaller and family owned - the majority of New Zealand businesses - tend to do worse.

And it says, contrary to what most people think, firms do not innovate enough and spend too little on research and technology.

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