Section 1: SMEs in New Zealand: The Context
Business enterprises are the producers of the wealth, jobs and tax base of the New Zealand economy.
They prosper best when the business environment is conducive to entrepreneurship and learning. Such an environment includes stable and well-designed macro-economic policies, an enabling regulatory framework and a sound legal system.
SMEs are often the focus of attention in the New Zealand economy. They comprise most of our enterprises. In smaller, rural centres, they are at the heart of local economic, social and community activity. Most commentators agree that SMEs face barriers to growth over and above those experienced by larger firms.
SMEs over the next decade can anticipate an uncertain future. They will be challenged by new competitors, new technologies and changes in their regulatory environment. The state has a large role in shaping an environment in which SMEs can prosper, grow and contribute to New Zealand.
Therefore the government's approach to fostering SMEs should be focused primarily on creating an environment that is supportive for all businesses. However, in doing so it must recognise also the particular make-up of, and the particular circumstances faced by, SMEs.
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