Summary
Small and medium sized Enterprises constitute the majority of all enterprises in New Zealand....
- 86% of enterprises employ 5 or less full time equivalents (FTEs).
- 96.8% of enterprises employ 19 or fewer FTEs.
...and the number of SMEs is increasing.
- The number of SMEs (0-19 FTEs) increased 2.7% in 2002, following at decrease of 0.4% in 2001.
- Movement was similar for all categories making up the SME group.
The average enterprise size has remained stable.
- Between 2001 and 2002 the average number of FTEs per enterprise has remained stable at 5.2.
SMEs also account for a significant proportion of total employment...
- SMEs account for 42.7% of all FTEs.
- Small firms account for 23.2% of all FTEs.
....and output.
- Using value added as a measure of output, SMEs account for 35.6% of the economy's output.
- Small firms contribute 20.4% of total output.
Small firms play a key part in the increase in enterprise dynamic in New Zealand.
- In 2002, births and deaths for small firms accounted for 93.6% and 92.4% respectively of total enterprise dynamic in the economy.
SMEs form a significant component of modern economies both in terms of number of firms and their contribution to employment.
- 97% of New Zealand firms are SMEs; this proportion is similar to a number of other countries.
- However, SMEs account for a higher proportion of employment in New Zealand relative to other countries.
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