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SMEs Internationally


This Document is Archived


SMEs in New Zealand: Structure and Dynamics - 2004

[ Last Updated 4 November 2005 ]


SMEs generally account for 95% of enterprises and 60-70% of employment in most economies.

International comparisons of the contribution of SMEs are often difficult to make due to the different methods used to collect and communicate firm-level data by central statistical agencies. Tables 9 and 10 provide information on a limited number of countries where comparable and recent data was readily available.22

Countries also have different firm size classifications. For example, in the United States the definition of SMEs is industry specific, meaning that in some cases firms with up to 500 employees can be classified as small businesses.23 In the United Kingdom, an SME is generally considered to be a firm with less than 250 employees.24

The OECD generally defines SMEs as firms with fewer than 500 employees. Using this definition, SMEs internationally constitute around 99 percent of enterprises and account for 60 to 70 percent of employment.25

For all countries represented in these statistics, except New Zealand, the number of employees determines size class. For New Zealand, the number of FTEs determines size class and the 100-499 size class includes all businesses with 100 or more FTEs.

Table 9: Percentage of Firms26 by Size Class27
 YearEmployment Size Class
0-1920-4950-99100-499500+
Percentages
New Zealand28200297(97)21(2)0(0)-
Australia29199996-31-
UK2001972100
US30200097-200
Table 10: Percentage of Employees by Size Class
 YearEmployment Size Class
0-1920-4950-99100-499500+
Percentages
New Zealand200242(49)127(20)39(31)-
Australia199947-1934-
UK200130751147
US200028-161244

The structure of the New Zealand private business environment (shown in parentheses) is strikingly similar to that of Australia. A slightly smaller proportion of private businesses in Australia fall into the smallest size categories.

22SME statistics for a wider variety of countries are provided in OECD (2002), Small and Medium Enterprise Outlook[external link]. They are compiled using different parameters and they are not directly comparable to the data presented in this report.

23Refer to the United States Small Business Administration [external link].

24Refer to the UKSmall Business Service [external link].

25OECD (1997), Small Business, Job Creation and Growth: Facts, Obstacles and Best Practices.

26Defined as "an organisational unit producing goods or services which benefits from a certain degree of autonomy in decision-making, especially for the allocation of its current resources" (Eurostat, 1995). Non- New Zealand firms counted in this table are "continuing firms", i.e. those firms which exist in the years prior and subsequent to the one specified.

27Data derived from:

28For all countries except New Zealand, number of employees determines size class. For New Zealand number of FTEs determines size class (100-499 size class includes all businesses with 100 or more FTEs).

29Figures in brackets are for private firms only to allow comparison with Australia. Available size categories for Australia are 0-19, 20-99 and 100+. Data for category 20-99 appears in 50-99 column, data for 100+ category appears in 100-499 column. Note that Australian figures are for private businesses only.

30Available size categories for USA are 0-19, 20-99, 100-499, 500+. Data for category 20-99 appears in 50-99 column.


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