Many thinking people agree that small business make big contributions to total employment.
To start a successful small business one needs a good idea, money, cashflow and a measure of good fortune along with massive risk and hard work.
The wizards at Labour Party Central, no, not the "cloud", but very much in the fog, have just raised the bar to impede start up business with compulsory superannuation.
An enterprising young fashion designer, a young person wanting to get on the ladder to dairy farm herd ownership or similar will need all the cash they can lay their hands on in the early days. This idiocy will remove money from them and lock it up till the government says they can access it and should their enterprise begin to employ others then the entrepreneur will be forced to contribute 7% of any wages negotiated to Kiwi Saver.
Anyone who entered into a compulsory savings scheme with an insurance company will well know that in the startup years the contributions are swallowed up with fees, at least the first year goes to the agent setting it up.
Any equity accumulated will not be available to the cash starved young business person and who will stop the investment vehicle from doing what successive superannuation fund managers do so well, just lose it.
All together a handbrake on wealth creation, well done Labour.