Ther needs to be more awareness to know how to treat money with respectM6 The

Ther needs to be more awareness to know how to treat

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“It is mainly out of ignorance and lack of financial literacy. There needs to be more awareness to know how to treat money with respect.”(M6) “The common thread is the financial literacy for the Maori and Pacific Islanders. First it is the lack of financial literacy in terms of basic financial functionality, and the other side is an understanding of the function in terms of their whole lifestyle. It is kind of an annoying aspect of their lives in most cases.” (BE12) Other inter-related factors for their tax payment difficulties were: financially supporting family members; poor collection from customers and in-groups; inability to borrow from mainstream finance; gifting of goods and services; seasonality in incomes; general disinterest in tax matters; and their under-appreciation of money. These factors led to financial shortages and non tax payments were common occurrences. The Maori sample claimed that money and money management were relatively new concepts as they had historically transacted in non-monetary terms, which led to poor cash planning: “We have this thing of koha (like giving a gift) and aroha (doing something for love) and on the marae (meeting place), you go and work there for free. The returns you might get are food, like after the funeral and there is lots of food left over and you might be given that
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148 and usually not in monetary terms. Money is not indigenous or native to our culture at all.”(M6) “I think it can be difficult for some Maori operators because to some, they see money or too much money can be evil. They are quite good in giving away things like they may visit a client. One of the women that I deal with has a skin care business and she would ask people to take some of the products for free.”(BE4) Despite that their businesses were seasonal (see Appendix 11), many did not have alternative incomes or financing, which reflected their cultural values of low uncertainty avoidance (see Chapter 4, section 4.5.3.) and short term time orientation (see Chapter 4, section 4.5.4.). In spite of having tax payment difficulty, M2 did not aggressively pursue debt owing from whanau (family) members. As most did not have alternative solutions to address their tax payment problem, many chose to ignore it until the problem became insurmountable. Maori inability to borrow from mainstream finance due to their collective land ownership, considered unsuitable collateral, contributed to their low cash reserves in Maori businesses (De Bruin & Mataira, 2003; Warriner, 2007): “Mainly is because they do not have the collateral for borrowings. For example, they may be living on the land but often the land is not theirs, but it is jointly owned by the iwi (family) or hapu (sub-tribe). And therefore you cannot use the land as collateral against the loan.”(BE5) 8.6.1 Maori perceptions of tax payments and cash jobs All Maori operators in this study acknowledged the need to pay taxes but like the Europeans, they were dissatisfied with having to account and pay for the different tax types and felt that taxes were not spent on SMEs: “I don’t mind paying taxes if it is spent well. What I feel is that we
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  • tax compliance, SME Operators

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