SMEs Contribution to Employment
The number of FTEs employed by SMEs decreases
The number of FTEs employed by SMEs in total decreased by 1.2 percent in the year to February 2001, following a rise of 5.4 percent in the previous year. The proportion of total employees hired by SMEs has remained fairly constant over the last few years.
Figure 3: Number of FTEs by Size
Table 2: Annual Percentage Change in Employees by Enterprise Size (Years to February)
| | 1997 | 1998 | 1999 | 2000 | 2001 |
|---|
| 0-5 FTEs | 3.9% | 4.3% | -1.3% | 5.1% | -3.2% |
| 6-9 FTEs | 0.5% | -0.6% | 2.9% | 6.4% | 1.7% |
| 10-19 FTEs | 1.6% | 3.4% | 1.7% | 5.3% | 1.0% |
| 20-49 FTEs | 1.9% | -0.8% | 4.1% | 6.2% | 0.4% |
| 50-99 FTEs | -0.2% | 1.7% | -3.8% | 3.3% | -1.0% |
| 100+ FTEs | 2.5% | -0.4% | -1.8% | -0.3% | 1.6% |
| Total | 2.3% | 1.1% | -0.4% | 3.1% | 0.1% |
New small businesses create the greatest number of new jobs
Table 3 illustrates the contribution that SMEs made to job creation in the economy between 1995 and 2001. The largest single contributor was new firms employing 0-5 FTEs, which created 198,450 new jobs. Of continuing businesses, the greatest number of new jobs came equally from small and large (100+ FTEs) firms. While small businesses were also the cause of the greatest employment reduction, this was outweighed by the jobs they created, giving a net employment change for all small firms of 87,500 between 1995 and 2001.
Table 3: Employment Creation and Reduction by Enterprise Size (February 1995 to February 2001)
| | Business Size |
|---|
| 0 - 5 | 6 - 9 | 10 - 19 | 20 - 49 | 50 - 99 | 100 + | All |
|---|
| Number of FTEs |
|---|
| Employment Creation |
| Continuing Business | 64,150 | 18,280 | 23,300 | 26,410 | 22,230 | 67,430 | 221,800 |
| New Business | 198,450 | 59,210 | 60,630 | 52,760 | 24,440 | 75,440 | 470,930 |
| Total | 262,600 | 77,490 | 83,930 | 79,170 | 46,670 | 142,870 | 692,730 |
| Employment Reduction |
| Ceased Business | -155,640 | -45,300 | -46,320 | -44,210 | -26,550 | -97,350 | -415,370 |
| Continuing Business | -19,450 | -11,340 | -14,870 | -17,820 | -11,880 | -82,210 | -157,570 |
| Total | -175,100 | -56,630 | -61,190 | -62,030 | -38,430 | -179,560 | -572,940 |
| No Change |
| Continuing Business | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| New Employment Change | 87,500 | 20,860 | 22,740 | 17,140 | 8,240 | -36,690 | 119,790 |
The average size of New Zealand firms recovers, although remains below six
After a reduction in the average number of employees per enterprise over the last few years, it levelled out in 1999. The average number fell from 6.5 workers per firm in 1996 to 6 workers in 1998. It remained steady at 6 workers in February 1999, and then dropped further to 5.7 in 2000. However, in February 2001, the number rose to 5.9.
Figure 4: Average FTEs per Enterprise
SMEs utilise the greatest proportion of part-time employees
In 2001, the average utilisation of part-time staff throughout all firms is 30.1 percent. Figure 5 shows both 0-5 FTEs and 6-9 FTEs had approximately 33 percent utilisation of part-time staff, whereas all other FTE groupings are below 30 percent utilisation. Firms with 50-99 FTEs had the smallest utilisation of part-time FTEs, at just below 27 percent.
Over the decade to 2001, utilisation of part-time employees has increased across all size groups. This increase has been most apparent amongst larger firms, with 100+ FTE firms increasing utilisation from approximately 9 percent in 1989 to the current level of 28.2 percent.
Figure 5: Full/Part Time Employees by Enterprise Size
The majority of New Zealanders in the labour force are paid employees
Figure 6 illustrates data from the 2001 Household Labour Force Survey, showing the largest proportion (80 percent) of the employed New Zealand labour force are paid employees, while 19 percent are self-employed or an employer.
Figure 6. Employed Labour Force by Type of Employment 2001
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