One of New Zealand’s most successful tech entrepreneurs, Rowan Simpson, says companies with diverse staff and boards perform better.
During an interview with Q+A, the former Trade Me software developer said diversity was so important, it’s often part of performance metrics.
His views contrast starkly with many mainstream Republicans in the US and billionaire ally of president Donald Trump, Elon Musk. In January, Trump banned so-called DEI or diversity, equity and inclusion programmes across the federal government.
Simpson was one of the first employees at TradeMe’s inception in 1999. He became a multi-millionaire in 2006 when TradeMe sold to Fairfax for $750 million. Simpson went on to invest in accounting software company Xero, which is now worth around $30 billion.
“The team at Trade Me was diverse on every dimension except for age – we were all young – but otherwise a diverse team and that made us strong.”
Despite the economic downturn in New Zealand, Simpson was optimistic about tech start ups succeeding as downturns “create opportunities”.
Simpson recalled Trade Me started in the wake of the dot-com bubble imploding, and that Xero was floated on the NZX a few months before the Global Financial Crisis.
“You would say that was possibly the worst time to try and create such an ambitious global company.”
Simpson was critical of New Zealanders investing heavily in housing — an “unproductive investment”.
“One of the things we need to perhaps address is this idea that people have that property is a sure bet. I’m not sure that it will be in the future in the same way as it has been in the past.
“Maybe that will shift our thinking a little bit to maybe think a little bit differently about uncertain investments like start-up investments are.”
Is foreign investment the golden ticket?
Two weeks ago, the Government announced changes to the Active Investor Visa to try to attract more foreign investors.
Speaking to Q+A, Simpson wasn’t confident about how successful the “Golden Visas” could be, because they relied on wealthy investors close to the end of their working lives.
“What we really need are people who are hungry, who are at the early stages of their careers and want to live here and work here and build their successes here.”
“I think we should imagine ourselves as a struggling second division French rugby team, who imagines that all we need to do to win the championship is get a recently retired All Black to come across and join our team.”
Q+A with Jack Tame is made with the support of New Zealand On Air