Summary
Small and medium sized enterprises constitute the majority of all enterprises in New Zealand....
- 84.9% of enterprises employ 5 or less full time equivalents (FTEs).
- 96.5% of enterprises employ 19 or fewer FTEs.
...and the number of SMEs is increasing.
- The number of SMEs (0-19 FTEs) increased 9.5% in 2000, following an increase of 30.9% between 1994 and 1998 and a drop of 0.8% in 1999.
- Small firms (0-5 FTEs) have shown the greatest growth, with the number of enterprises increasing 35% between 1994 and 1998, and 10% between 1999 and 2000.
In line with this increase has been a decline in the average enterprise size.
- The average number of FTEs per enterprise has fallen from seven in 1994 to just under six in 2000.
SMEs also account for a significant proportion of total employment...
- SMEs account for 43% of all FTEs.
- Small firms account for 24% of all FTEs.
....and output.
- Using sales and other income as a measure of output, SMES account for 35% of the economy.
- Small firms contribute 20% of total output.
SMEs have played a key part in the increase in enterprise dynamic in New Zealand.
- Births and deaths among small firms have increased 142% and 126% respectively over the last decade.
- These increases account for 95% of the total increase in 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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