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SMEs' Contribution to Output


This Document is Archived


SMEs in New Zealand: Structure and Dynamics - 2006

[ Last Updated 2 June 2006 ]


Value-added is a measure of the contribution to total output by enterprises in the economy. Value-added is calculated as gross output minus intermediate consumption.4 The data used for this calculation are sourced from the Annual Enterprise Survey, which feeds into the National Accounts from which official GDP is calculated. While not related to the official GDP figures that are published by Statistics New Zealand, total value-added by enterprise size can provide an indication of the contribution of each EC size group to economic output. The following figures compare the 2002/2003 and 2003/2004 years.

Similar to the previous year, firms with 100-499 employees recorded the highest average value-added per Rolling Mean Employment (RME) ($64,008) in 2004. They were followed by firms with 1-5 employees ($56,402) and 6-9 employees ($40,668).

Figure 9: Average Value-Added Output per RME by Enterprise Size 2003-2004

Image of "Figure 9: Average Value-Added Output per RME by Enterprise Size 2003-2004"

EC Size Group Deflated Average Value Added per RME ($)
2003 2004
0 - -
1-5 54,755 56,402
6-9 41,253 40,668
10-19 38,302 37,067
20-49 38,631 38,624
50-99 39,260 38,493
100-499 66,329 64,008
500+ 38,287 34,157

SMEs accounted for a larger proportion of New Zealand's output.

The SME contribution to total value-added increased from 37.2 percent in 2003 to 39.0 percent in 2004. Enterprises with 100-499 employees were the single strongest performers in 2004, accounting for 23.8 percent of value-added output.

Figure 10: Total Value-Added Output by Enterprise Size 2003-2004

Figure 10: Total Value-Added Output by Enterprise Size 2003-2004

EC Size Group Deflated Value Added ($m)
2003 2004
0 6,819 7,546
1-5 8,350 8,964
6-9 4,836 5,220
10-19 6,928 6,776
20-49 8,292 8,589
50-99 5,415 5,341
100-499 17,470 17,407
500+ 14,188 13,213
Total 72,298 73,056

4 Value-added is provided with the following caveats:

  • The figures should be seen only as a proxy. While source data used for this feeds into the system for National Accounts from which GDP is calculated, they have not been through that system and therefore is provided only as an indicator
  • The figures have been deflated by a generic deflator, which is not output-specific, and are not related to the Quarterly Gross Domestic Product (QGDP) figures published by Statistics New Zealand
  • These data are not standard output and as such are not available in any other cross-tabulations
  • Figures are expressed in terms of 1997 dollars

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