Reflections and Recommendations
My biggest breakthroughs on the sub-question "What’s the impact on gender and racial bias in our venture capital startups in Aotearoa?"
Pic: Sophie and Saraa Taawha at Kokiri 2023
ON LANGUAGE BARRIERS
In my role as a Navigator, and working in economic development, which is essentially an account manager role interacting with entrepreneurs and business owners, I hold daily discovery meetings. Since beginning this work in 2020 I was able to speak to and lead a team that captured data and stories for over 1400 Northland businesses in the wake of Covid-19 for Te Tai Tokerau. For the past 4 years, over 6000 hours of professional inquiry, I have realised the fundamental role I play for customers.
I translate.
I translate scientific, exalted and codified language for my customers daily.
Every day phrases we use in the business world and innovation ecosystem such as ‘canvas’ (a business plan on a page), ‘benchtop testing’ (entry level research and development testing that anyone can undertake), ‘proof of concept’, mix this with jargon and acronyms like MVP (minimum viable product), TRL (technology readiness level), ASG (a Callaghan Innovation grant - formerly known as the Arohia Seed Grant). These phrases are a language and knowledge minefield that (in my opinion) obfuscate, and creates a bipolar segment of those that are in the know, and sets apart and inherently obstructs and keeps out those that don’t. This barrier to knowledge is protected in the language we use.
Standards and codified language that becomes protected and used for and against those that seek and secure funding, capital, or investment. Entrepreneurs that triumph have learned the second language and it becomes second nature for those in the the know. Codified language is then used against by stupefying and stumping, inherently ‘othering’ those who don’t know, holding capital or investment away from those who are then perceived as dumb. There is an insinuation that the lack of language is correlated to their knowledge, capability, or skills to create successful business and therefore turn a profit. I despise it somedays, and yet, also relish the opportunity to throw it down myself when I need to impress or stupefy my own targets. My own privilege is my knowledge, reputation, and language. It's a confronting realisation that language and education is one of the first barriers that must be overcome when assisting others. What language actually does is keep those that are learning entrepreneurialism, capitalism and science, it keeps them at arms length. Learning another language ends up being an obvious barrier and yet another obstacle to over come as well as set up and create a successful business.
Institutionalized racism and colonisation
Disclaimer: This is my boldest reflection and these opinions are my own and in no way reflect my employer: The NZ Government enables institutionalized racism.
The sub-question that was the most enlightening for me personally was "What’s the impact on gender and racial bias in our venture capital startups in Aotearoa?". Themes that emerged from stories told to me by participants were all linking back to the impact of colonisation. This theme emerged from founder participants, as well as those in VC and Angel investors, so both sides of the system are aware that there is a negative impact of inequitable investment in Māori and women. We have a homogenous group of powerful and predominantly Pākehā male investors that continues to undervalue wahine-led startups. Māori and non-Māori women are equally disadvantaged and fail to receive investment due to the bias that is occurring in the existing financial systems. This is not unconscious, both reported and are aware this is at play.
GOVERNMENT
We don’t have the right resources in place to support Māori in business (networks, resources, funding and grants). While I can’t say it myself, you can read between the lines that we have a growing number of examples that the current government is disestablishing efforts designed originally to honour Te Tiriti, and measures that were set up to support, promote, and celebrate Maori (examples: The now dismantled Māori Health Authority, Te Aka Whai Ora, discouraging use of Māori language in government).
Our (newest) government is failing Māori heading into Waitangi Day. This comes during the period where the government is undermining progress for Māori by opposing co-governance, and has pointlessly in my opinion reignited Treaty of Waitangi debates. It is a dark time where we all have to rally together. My opinion is that we don't have products or systems that serve Māori appropriately. Not to mention the organiasations tasked with supporting Māori and Pacifica are underfunded and resources are stretched, and limited. Services dedicated to increasing business activities and Māori networks are tied up in thankless administrative reporting requirements that are not outcome focused.
In Aotearoa we have 12% of the population, Māori, that are inherently disadvantaged from the outset due to the colonised history of Aotearoa. It takes so long to get anything done, applying for funding (learning the language of grant writing or investment activity is a skill and capability unto itself), the administrative requirements to prove how the investment or funding has been spent (I’m specifically referring to tenders in which I have contributed to for Māori-led organisations to fund themselves as part of our pakihi Māori networks). In-fighting from policy makers and our government is creating constitutional obstacles have meant dedicated programmes 7yrs plus in the making have been decommissioned due to politics and how capital and funding is distributed.
The current and previous governments in 2024 since 1840 continue to dishonor Te Tiriti. Which has let down our most vulnerable, yet creative, empowered and inspired communities. Matauranga, knowledge and learning, is being undermined not only with language barriers, but unnecessary hoops that prevent access to the equitable opportunities. Pots of money, networks and capital continue to be available for the prestigious chosen few. Keeping the “haves and have nots” further apart in 2023-2024. And God forbid you be disabled, Māori, and a woman, it makes it 10x harder to get ahead compared to able bodied, attractive men (as my literature reviews have identified).
FREEDOM
The whole point of being an entrepreneur is to be your own boss, enjoy the freedoms and liberties this affords for your whanau, communities, and country, according to my customers and participants. As well as of course the financial freedom and privilege that comes from being self employed. We have an opportunity to do so much with my findings and other kaupapa research that acts with Pono and demonstrates pathways for action.
In summary what I have found in performing my research, from undertaking interviews, professional inquiry and access to economic and policy decisions in the entrepreneurial ecosystem, collating and analysing my results, is that our (venture) and financial capital systems are so much more than a gendered issue, and while the roots are embedded in patriarchy and colonisation a promise of change is needed from government and grass roots. A solution to decentralising financial systems is a stand against racism and a call for democracy, and I’m now brave enough to call it what it is. Institutionalized racism and misogyny is the root cause of our systemic issues.
SOLUTIONS? RECOMMENDATIONS PERHAPS
MACHINE LEARNING TE REO AUDIT SOFTWARE
We should investigate the role of machine learning (one element of artificial intelligence) with Te Reo Māori to create a solution that can ease the administrative burden of grant application and audit requirements to service the 97% of the business population in Aotearoa, less than 5 full time equivalent employers (New Zealand is a nation of small and micro business – including self-employed. Defined as those with fewer than 20 employees, there are approximately 546,000 small businesses in New Zealand representing 97% of all firms - MBIE website data from 2023). While dialect nuances would need to be factored in, with Western dialects (e.g. Waikato-Tainui) being the most popular in Aotearoa and a sufficiently good starting point, exploring a solution to include East Coast or South island dialects would be a necessary second phase of research and development.
Prioritize a top down solution, with government, that includes policy and regulatory and legal compliance, and to herald a call for Callaghan Innovation to provide a 21 century solution to the administrative and reporting burden for Māori organisations, there could be a win win for the painful audit administrative component in providing this rudimentary grant funding for businesses, which can extend to private equity and capital raising activity. What’s good for Māori is good for everyone. Having access to grants or capital raising is one area where a machine learning solution could aid the sophisticated software and tools to perform these tasks. And this would be a fantastic next step on this path for wāhine, pakihi Māori, and all Aotearoa entrepreneurs.
RECOMMENDATIONS
I feel compelled to encourage others looking to take this research further to enact change at grass roots representation in blockchain, web3, decentralized financial systems, and embed policy at the top to enable changes to prioritise funding and create a technology readiness Matauranga equivalent, by Māori for Māori. I recommend research and policy to priorise funding and investment products that are based on equity for our genius, conscientious and best return on investment - women, and Māori, gender, non-binary, and Māori/ indigenous communities here in Aotearoa and globally.
With this knowledge comes responsibility and its time to action the empowerment of wahine and Māori that is key to protecting our environment, our people (all of our people) and profit.
He aha te mea nui tea o? He tangata he tangata, he tangata
Happy Innovating
Sophie
Report - The Gender Investment Gap
Jenni Rudd and Teresa Gattung - www.thegenderinvestmentgap.co.nz