The Emotional Cost of Redundancy - A Real Story Every NZ SME Owner Will Understand

A Real Story Every NZ SME Owner Will Understand

Today, I had one of those phone calls that stop you in your tracks.

It was my son, 29 years old, a sparky in Auckland. For years, he’s been the go-to guy at his firm. The one who always answered the phone after hours. The one who covered weekends and late-night callouts. The one who moaned about it, sure, but secretly loved the unspoken recognition that came with being relied upon.

In recent weeks, he was starting to feel that recognition more tangibly, getting a bit of love from the boss, real conversations about his future. And then, it all flipped. First came the blow of losing the ability to take his van home, a decision that stung, but one he could swallow. Then today, the real shock - he was made redundant.

It’s rocked him. And as his parent, I’m gutted and angry on his behalf. But as someone who’s worked closely with SME owners across New Zealand, I understand it completely.

This isn’t just a story about one electrician. It’s about every small and medium enterprise across Aotearoa that is quietly grappling with impossible decisions.

Behind Every Redundancy Is a Human Being. Often, Several.

We talk a lot about resilience in business, especially in the SME world. But what we don’t talk enough about is the emotional weight of running a business when times are tight.

The owner of my son’s company didn’t make this call lightly. I know, because I’ve sat across the table from people like him, again and again. People who genuinely care about their teams. Who lose sleep over whether to let one person go to save three. Who know that in outsourcing to subcontractors, they’re not just shifting costs, they’re shifting relationships.

No business owner dreams of running lean like this. No one wants to break up a team they’ve spent years building. But when the forward order book dries up, and when every overhead could be the difference between survival and closure, the choices become stark.

What We’re Missing in Our Infrastructure Support

Here’s the truth: our SME support structures in New Zealand, well-meaning though they may be, aren’t built to deal with this kind of reality. They focus on resilience training, digital transformation, and compliance checklists. And while those things matter, they miss the most human part of the story.

What we need is a support system that understands the personal cost of business ownership. One that recognises that small business is not just a vehicle for economic growth, but a community in itself, made up of real people who carry the weight of every decision on their shoulders.

And this is where we need to do better, as a country, as an ecosystem, and as people who say we support small business.

Your Story Matters. Help Us Build a Truer Picture.

If you’re reading this as a fellow SME owner, I know this story might sound familiar. Maybe too familiar. Maybe you've been that business owner making the gut-wrenching call. Or maybe you’ve been on the receiving end — loyal, hardworking, and suddenly out of a job.

Whatever your story is, I want to hear it. Not to sell you anything. Not to give advice. But to build a library of real experiences that show what it’s actually like to run or work for an SME in today’s Aotearoa.

The more we share, the more undeniable our message becomes: SMEs need support that understands the emotional and practical reality of being small, scrappy, and deeply human.

Please, if this resonates, write back. Share your story. Let’s give this movement depth and heart.

In business, we often tell ourselves to toughen up. But sometimes, the strongest thing we can do is tell the truth - especially when it hurts.

Let’s do that, together.

Here to help,

RegenerationHQ

If you’d like a confidential, free of charge, free of obligation conversation about your business, here’s how to get me.

📞 Phone +64 275 665 682
✉️ Email john.luxton@regenerationhq.co.nz
🌐 Contact Form www.regenerationhq.co.nz/contact

If you’d like to read more RegenerationHQ thinking on SME business and other things, go here – www.regenerationhq.co.nz/articlesoverview

🔹 RegenerationHQ Ltd - Business Problems Solved Sensibly.
Supporting NZ SME Owners to Exit Well, Lead Better and Build Business Value.