Government funds Business South, BMNZ initiatives using AI to help small businesses unlock growth
The New Zealand government is investing in two initiatives that use artificial intelligence to help small businesses identify growth opportunities and improve performance.
Small Business and Manufacturing Minister Cameron Brewer announced that the government is funding AI-powered initiatives from Business South and Business Mentors New Zealand (BMNZ).
"These tools show how going digital can lift efficiency and help more businesses thrive," Brewer said.
"This is about fixing the basics and building the future, making sure small businesses have the practical support they need to grow, compete, and succeed."
The funding for Business South, which is the independent representative of employers in the Central South, will support the expansion of its AcceleratorNZ programme to a further 500 businesses.
AcceleratorNZ is a programme that uses AI to analyse a business's own data, highlight its biggest growth opportunities, and hand the owner a practical action plan that they can immediately use.
"The programme has already proven itself with more than 100 businesses. This expansion will let more than 500 benefit from AI-powered diagnostics over the next year," Brewer said.
Meanwhile, the funding for BMNZ will support its rollout of AI tools that sharpen the support its mentors provide, according to the government.
BMNZ is the nation's independent provider of mentoring and business training, connecting around 1,500 small and medium businesses a year with experienced mentors.
The government's investment will boost BMNZ's AI Digital Mentor tool, which will better match mentors to the businesses that need them.
"This modernises a service Kiwi businesses already rely on, giving mentors smarter tools while keeping the human connection at the heart of mentoring. The technology supports the mentor, it doesn't replace them," Brewer said.
There are about 600,000 small businesses in New Zealand, accounting for 97% of all Kiwi companies and employing about 680,000 people.
Small firms that adopted AI tools earned $400,000, or 4.3%, more revenue in financial year 2025 than their non-AI-adopting counterparts, according to a report released by 2degrees and Deloitte Access Economics earlier this year.
"Small businesses are the backbone of our economy, and every one of them has untapped potential to grow," Brewer said.
