Summary
Small and medium sized enterprises constitute the majority of all enterprises in New Zealand....
- 84.2% of enterprises employ 5 or less full time equivalents (FTEs).
- 96.4% of enterprises employ 19 or fewer FTEs.
...and the number of SMEs is decreasing.
- The number of SMEs (0-19 FTEs) decreased 3.7% in 2001, following an increase of 15.4% between 1995 and 1999 and a rise of 9.5% in 2000.
- Small firms (0-5 FTEs) have shown the largest movement, with the number of enterprises decreasing 4.3% between 2000 and 2001. This follows a 10% increase in 2000, with an increase of 16.7% from 1995 to 1999.
In line with this increase has been a decline in the average enterprise size.
- The average number of FTEs per enterprise has fallen from 6.5 in 1995 to 5.9 in 2001.
SMEs also account for a significant proportion of total employment...
- SMEs account for 42.4% of all FTEs.
- Small firms account for 23.1% of all FTEs.
....and output.
- Using sales and other income as a measure of output, SMES account for 39% of the economy.
- Small firms contribute 27% of total output.
SMEs have played a key part in the increase in enterprise dynamic in New Zealand.
- To 2000, births and deaths among small firms had increased 142% and 126% respectively over the last decade. (2001 births not available - see p11)
- In 2001, deaths for small firms account for 92.2% of total enterprise dynamic in the economy.
By international comparison, SMEs form a significant component of the New Zealand economy.
- SMEs are more predominant in New Zealand than in many other countries.
- SMEs account for a high proportion of employment in New Zealand relative to other countries.
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