Performance Measures
Business performance measures are sourced from the Statistics New Zealand
Annual Enterprise Survey (AES).
The AES provides information on financial
performance and financial position and includes variables such as income, expenditure,
profit, purchases of fixed assets, and equity. The
AES data are also the basis of national
accounting variables such as value-added, gross output and gross fixed capital formation.
This year, Structure and Dynamics includes a comparison of
AES data from 2003 and 2004 to demonstrate
changes in firm performance over time.
Businesses with 1-5 employees have the highest average real profits per employee.
Enterprises with 1-5 employees had the highest average real profits per employee
of all size groups ($31,169) and this result was higher than the previous year's
result ($26,296). The next highest results in 2004 were enterprises with 6-9 employees
($13,359) followed by enterprises with 100-499 employees ($13,309).
Figure 29: Average Real Profit per
RME by Enterprise Size 2003-2004
| EC Size Group |
Deflated Average real ($) profit per
RME |
| 2003 |
2004 |
| 0 |
|
|
| 1-5 |
26,296 |
31,169 |
| 6-9 |
13,669 |
13,359 |
| 10-19 |
9,948 |
10,334 |
| 20-49 |
9,062 |
9,957 |
| 50-99 |
6,848 |
8,356 |
| 100-499 |
14,647 |
13,309 |
| 500+ |
10,724 |
9,884 |
Businesses with 5 employees or fewer accounted for a large proportion of total
profits.
Businesses with 5 employees or fewer recorded a share of almost 40 percent of
all profits ($9,460m) in 2004, reflecting the large numbers of these enterprises
in the economy. This result is a 12.1 percent increase from 2003. Enterprises with
100 or more employees, while accounting for less than 1 percent in enterprises,
recorded 31.1 percent of total real profits. Compared to 2003, profits of enterprises
in this size bracket fell by 5.0 percent.
Figure 30: Total Real Profit by Enterprise
Size 2003-2004
| EC Size Group |
Deflated Operating Surplus before Income Tax
($m) |
| 2003 |
2004 |
| 0 |
4,429 |
4,506 |
| 1-5 |
4,010 |
4,954 |
| 6-9 |
1,603 |
1,715 |
| 10-19 |
1,799 |
1,889 |
| 20-49 |
1,945 |
2,214 |
| 50-99 |
944 |
1,159 |
| 100-499 |
3,858 |
3,619 |
| 500+ |
3,974 |
3,824 |
| Total |
22,562 |
23,880 |
Businesses with 100-499 employees recorded the highest average real sales and
other income per employee.
Businesses with 100-499 employees recorded the highest average real sales per
RME ($236,626) in 2004. Overall, average
real sales and other income per RME
by enterprise size remained relatively consistent from 2003 to 2004.
Figure 31: Average Real Sales and Other
Income per RME by Enterprise Size 2003-2004
| EC Size Group |
Deflated Average Real Sales per
RME |
| 2003 |
2004 |
| 0 |
|
|
| 1-5 |
176,228 |
180,810 |
| 6-9 |
144,663 |
144,454 |
| 10-19 |
130,442 |
135,550 |
| 20-49 |
147,629 |
143,157 |
| 50-99 |
166,149 |
160,554 |
| 100-499 |
235,051 |
236,626 |
| 500+ |
184,728 |
188,129 |
Larger firms accounted for almost half of combined sales and other income.
A large share of total real sales and other income were attributed to firms employing
100 or more RME (47.8 percent), reflecting
the size of the individual enterprises.
SMEs achieved a share of
33.3 percent of total sales and other income in 2004.
Figure 32: Total Real Sales and Other
Income by Enterprise Size 2003-2004
| EC Size Group |
Deflated Sales of Goods and Services ($m)
|
| 2003 |
2004 |
| 0 |
22,408 |
23,403 |
| 1-5 |
26,873 |
28,738 |
| 6-9 |
16,960 |
18,540 |
| 10-19 |
23,593 |
24,780 |
| 20-49 |
31,689 |
31,835 |
| 50-99 |
22,915 |
22,278 |
| 100-499 |
61,908 |
64,350 |
| 500+ |
68,453 |
72,776 |
| Total |
274,799 |
286,700 |
Average salaries and wages tend to increase with firm size…
In 2004, average salaries and wages paid to employees were greatest for firms
employing 100-499 employees ($35,243 per RME)
and also increased the most for this enterprise size bracket (16.7 percent) from
the previous year. In contrast, enterprises with 20-49 employees saw their average
salaries and wages reduce by 16.3 percent from 2003 to 2004.
Figure 33: Average Real Salaries and
Wages per RME by Enterprise Size 2003-2004
| EC Size Group |
Deflated Average Real Salaries and Wages per
RME |
| 2003 |
2004 |
| 0 |
|
|
| 1-5 |
19,369 |
19,922 |
| 6-9 |
20,674 |
21,579 |
| 10-19 |
21,743 |
22,282 |
| 20-49 |
27,029 |
22,628 |
| 50-99 |
33,982 |
32,864 |
| 100-499 |
30,210 |
35,243 |
| 500+ |
32,369 |
33,192 |
…and larger firms account for over 50% of total salaries and wages.
Firms' with 100 or more employees share of total salaries and wages paid to employees
increased in 2004, accounting for 52.1 percent of all monies paid, up from 49.1
percent in 2003. SMEs accounted
for 25.5 percent of total salaries and wages in 2004, a similar result to the previous
year.
Figure 34: Total Real Salaries and
Wages by Enterprise Size 2003-2004
| EC Size Group |
Deflated Salaries and Wages |
| 2003 |
2004 |
| 0 |
922 |
976 |
| 1-5 |
2,954 |
3,166 |
| 6-9 |
2,424 |
2,770 |
| 10-19 |
3,933 |
4,073 |
| 20-49 |
5,802 |
5,032 |
| 50-99 |
4,687 |
4,560 |
| 100-499 |
7,957 |
9,584 |
| 500+ |
11,995 |
12,840 |
| Total |
40,674 |
43,001 |
Table 5 provides a comparison of average performance measures per enterprise.
Table 5: Average Performance Measures per Enterprise
by Firm Size 2003-2004
| Employee Count |
Average Profit per Enterprise before Income
Tax ($) |
Average Real Sales and Other Income per Enterprise
($) |
Average Salaries and Wages per Enterprise
($) |
| 2003 |
2004 |
2003 |
2004 |
2003 |
2004 |
| 0 |
37,654 |
33,659 |
190,505 |
174,810 |
7,839 |
7,290 |
| 1-5 |
53,025 |
62,087 |
355,346 |
288,578 |
39,061 |
39,043 |
| 6-9 |
92,498 |
90,105 |
978,645 |
974,347 |
139,872 |
145,549 |
| 10-19 |
128,124 |
132,927 |
1,680,279 |
1,743,531 |
280,106 |
286,609 |
| 20-49 |
263,431 |
289,397 |
4,291,968 |
4,160,640 |
785,825 |
657,658 |
| 50-99 |
465,423 |
568,858 |
11,297,859 |
10,929,890 |
2,310,847 |
2,237,239 |
| 100-499 |
2,932,047 |
2,644,792 |
47,049,543 |
47,022,602 |
6,047,251 |
7,003,622 |
| 500+ |
15,584,314 |
14,374,082 |
268,443,137 |
273,594,605 |
47,039,216 |
48,270,138 |
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