Number of SMEs
New Zealand is predominantly a nation of small businesses.
Most enterprises in New Zealand are small and medium-sized enterprises. As at February 2005:
- 96.3% of enterprises employ 19 or fewer people
- 86.5% of enterprises employ 5 or fewer people
- 63.2% of enterprises have no employees
Figure 1: Number of Enterprises by Size, as at February 2005

| EC Size Group |
Number of Enterprises |
% |
| 0 |
211,171 |
63.16% |
| 1-5 |
78,149 |
23.37% |
| 6-9 |
17,821 |
5.33% |
| 10-19 |
14,858 |
4.44% |
| 20-49 |
8,152 |
2.44% |
| 50-99 |
2,329 |
0.70% |
| 100-499 |
1,551 |
0.46% |
| 500+ |
309 |
0.09% |
| Total |
334,340 |
|
The statistics presented in this report include both public and private enterprises. Public enterprises include central and local government enterprises, other local authorities and rūnanga iwi. Private enterprises included private corporate and non-corporate producer enterprises, producer boards, private registered banks and private insurance and pension funds. The following table shows the number of enterprises in the private and government sectors.
Table 1: Private and Government Sector Enterprises by Size, as at February 2005
| EC Size Group |
Number of Enterprises |
| Private Sector |
Government Sector |
| 0 |
210,899 |
272 |
| 1-5 |
77,756 |
393 |
| 6-9 |
17,348 |
473 |
| 10-19 |
14,145 |
713 |
| 20-49 |
7,317 |
835 |
| 50-99 |
2,056 |
273 |
| 100-499 |
1,311 |
240 |
| 500+ |
215 |
94 |
The number of SMEs increased in the year to February 2005, although the proportion of SMEs remained relatively constant.
The number of SMEs increased by 3.1 percent in the year to February 2005, down from a 10.2 percent increase in the year to February 2004. The total number of enterprises also rose by 3.1 percent from 324,293 in February 2004 to 334,340 in February 2005.
The proportion of firms defined as SMEs was 96.3 percent as at February 2005, the same figure reported in last year's report.
Figure 2: Cumulative Enterprise Count by EC Size Group, as at February 2005

| EC Size Group |
Cumulative Number of Enterprises |
| 0 |
211,171 |
| 1-5 |
289,320 |
| 6-9 |
307,141 |
| 10-19 |
321,999 |
| 20-49 |
330,151 |
| 50-99 |
332,480 |
| 100-499 |
334,031 |
| 500+ |
334,340 |
Table 2: Annual Percentage Change in Numbers of Enterprises
| EC Size Group |
2001 |
2002 |
2003 |
2004 |
2005 |
| 0 |
-1.55% |
2.74% |
4.63% |
14.82% |
0.67% |
| 1-5 |
1.05% |
2.39% |
3.51% |
1.64% |
8.81% |
| 6-9 |
2.48% |
3.45% |
8.20% |
1.97% |
5.68% |
| 10-19 |
3.76% |
3.47% |
9.28% |
2.50% |
7.01% |
| 20-49 |
1.70% |
1.97% |
8.31% |
3.62% |
2.68% |
| 50-99 |
2.53% |
2.32% |
5.87% |
4.33% |
3.97% |
| 100-499 |
4.58% |
0.36% |
1.43% |
4.30% |
4.87% |
| 500+ |
4.86% |
7.34% |
3.60% |
2.43% |
4.75% |
| Total |
-0.35% |
2.69% |
4.84% |
9.95% |
3.10% |
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