Baby boomers struggling to sell their small businesses may find new opportunities after the government announced a business investor visa aimed at attracting international buyers, RNZ reported.
According to a report by RNZ, the new visa, unveiled on Wednesday, will replace the entrepreneur visa and has been welcomed by immigration advisers and industry representatives. Under the scheme, migrant investors could secure residency in as little as 12 months by purchasing an established firm and hiring at least one additional employee.
The visa offers a fast-track residency pathway for investors committing $2 million, while those investing a minimum of $1 million would be eligible for residence after three years. To qualify, the business being purchased must have been in operation for more than five years, employ at least five full-time staff members, and meet specific financial standards.
Immigration adviser Tobias Tohill described the move as a “sensible decision” to address the succession challenges facing businesses as the baby boomer generation retires. He noted that many firms, particularly in rural areas such as medical and dental practices, farms, and specialist industrial companies, had struggled to find successors, reported RNZ.
“There isn’t the capital in New Zealand, or the people willing to come into those often quite specialised businesses,” Tohill said. “Opening up those businesses for investment in a way that’s certain and clear to overseas investors is a sensible change from the existing entrepreneur visa,” RNZ quoted.
According to RNZ, however, Tohill criticised the government for abolishing the entrepreneur visa without warning, leaving some start-up founders in limbo. “This announcement has massively eroded trust. There is a real risk of New Zealand losing entrepreneurs with innovative start-up plans,” he cautioned.
Immigration Minister Erica Stanford, in a statement, defended the policy shift, saying the new visa would provide “clearer settings” compared to its predecessor, which had suffered from low uptake and high decline rates, RNZ reported.
“This new visa will bring overseas investment to maintain and create jobs, grow incomes, and breathe new life into existing businesses across the country,” she said. Stanford also confirmed work is underway on a separate visa pathway for start-up entrepreneurs with scalable, innovative ideas, RNZ quoted,
According to RNZ, Simon Laurent, chairperson of the Association for Migration and Investment, said the policy struck a balance by setting investment thresholds at a realistic level. He noted the previous entrepreneur category’s $100,000 minimum had been too low, leading to a wave of “junk businesses” entering the market.
While the new scheme demands higher investment, Laurent argued it ensures that applicants will not only contribute capital but also take an active role in running businesses. “If you’re investing a million dollars, you need to run that business successfully and maintain staffing levels; that’s a challenge in itself,” he said, as quoted by RNZ.
The government’s latest visa is in addition to the Active Investor Plus visa, launched earlier this year, which requires between $5m and $10m in capital.
ISSUE
Leave a Comment