Summary
Small and medium sized enterprises constitute the majority of all enterprises in New Zealand....
- 96% of enterprises are SMEs employing 19 or fewer full time equivalents (FTEs).
- 84% of enterprises are small firms employing 5 or less FTEs.
but after an increase in the number of SMEs over the last few years, the number decreased in 1999....
- The number of SMEs shrank 0.8% in 1999, following an increase of 30.9% between 1994 and 1998.
- This decrease was due to a fall in the number of small firms (down 1.2% in 1999) while the number of medium firms increased.
The average enterprise size has levelled out at six employees.
- The average number of workers per enterprise has fallen from seven in 1994 to just over six in 1998, remaining at this level in 1999.
SMEs also account for a significant proportion of total employment...
- SMEs account for 42% of all employees.
- Small firms account for 23% of all employees.
....and output.
- Using sales and other income as a measure of output, SMEs account for 35% of the economy.
- Small firms contribute 19% of total output.
SMEs make a key contribution to enterprise dynamic in New Zealand
- Small firms account for over 90% of enterprise births and deaths.
- All firm size categories, including small firms, experienced a greater number of firm deaths than births in 1999.
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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