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• Structure and Dynamics

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• Structure and Dynamics - 2003
• Structure and Dynamics - 2002
• Structure and Dynamics - 2001
• Structure and Dynamics - 2000
• Structure and Dynamics - 1999

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

SMEs form a significant component of modern economies, both in terms of the number of firms in an economy and their contribution to a country's employment level.

When defined as firms with fewer than 500 employees, SMEs generally constitute around 99 percent of enterprises and account for 60 to 70 percent of employment.²⁴

Table 9: Percentage of Firms²⁵ by Size Class²⁶

Table 10: Percentage of Employees by Size Class

The structure of the New Zealand private business environment is strikingly similar to that of Australia. A slightly smaller proportion of private businesses in Australia fall into the smallest size categories, although the difference is not great.

²³International 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. SME statistics for a wider variety of countries are provided in OECD (2002), Small and Medium Enterprise Outlook. They are compiled using different parameters and they are not directly comparable to the data presented in this report.

²⁴OECD (1997), Small Business, Job Creation and Growth: Facts, Obstacles and Best Practices. SMEs defined as those firms with fewer than 500 employees.

²⁵Defined 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.

²⁶UK data from the Small Business Service, an agency of the Department of Trade and Industry. USA statistics from US Census Bureau, US Department of Commerce: Non-employing firms, Employing firms. Australian Bureau of Statistics (1999) Small Business in Australia: Canberra. New Zealand data from Business Demography Statistics, as at February 2002, Statistics New Zealand.

²⁷For 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).

²⁸Figures in brackets are for private firms only to allow comparison with Australia.

²⁹Available 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.

³¹For 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).

³²Figures in brackets are for private firms only to allow comparison with Australia.

³³Available 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.

³⁴Available size categories for USA are 0-19, 20-99, 100-499, 500+. Data for category 20-99 appears in 50-99 column.