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Summary


This Document is Archived


SMEs in New Zealand: Structure and Dynamics

[ Last Updated 7 November 2005 ]


Small and medium sized enterprises constitute the majority of all enterprises in New Zealand....
  • 85% of enterprises employ 5 or less full time equivalents (FTEs).
  • 96% of enterprises employ 19 or fewer FTEs.
...and the number of SMEs is increasing.
  • The number of SMEs (0-19 FTEs) increased 30.9% between 1994 and 1998.
  • Small firms (0-5 FTEs) have shown the greatest growth, with the number of enterprises increasing 35% between 1994 and 1998.
In line with this increase has been a decline in the average enterprise size.
  • The average number of workers per enterprise has fallen from seven in 1994 to just over six in 1998.
SMEs also account for a significant proportion of total employment...
  • SMEs account for 42% of all employees.
  • Small firms account for 24% of all employees.
....and output.
  • Using sales and other income as a measure of output, SMES account for 33% of the economy.
  • Small firms contribute 17% 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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