Small Businesses remain a vital part of New Zealand economy

Small Business Minister, Maurice Williamson, has today released the 2009 “SMEs in New Zealand: Structure and Dynamics” report which reconfirms the strong contribution made to the New Zealand economy by small and medium-sized enterprises (SMEs).

“SMEs are dynamic and flexible”, says Mr Williamson. “They are particularly important during these difficult economic times and this report recognises and acknowledges that importance. Without a doubt small businesses are the backbone of this economy.”

Featured in the report this year is information from the Statistics New Zealand Business Operations Survey. It presents data on the performance and business practices of New Zealand firms, and international comparisons with OECD members and the European Union.

The 2009 report shows:

• 97 percent of enterprises employ 19 or fewer people
• 89 percent  of enterprises employ 5 or fewer people
• SMEs account for 31% of all employees
• Self-employed people comprise 11 % of the labour force

SMEs are defined in New Zealand as businesses with fewer than twenty employees and are the most common business size in every industry.

The 2009 Structure and Dynamics report is the tenth in the series.  This year’s report is the second in the series to use data from the Longitudinal Business Frame, which offers expanded coverage and greater certainty around the level of business births and deaths.

The number of SMEs increased by 1.4 % in the year to February 2008 and the total number of people employed by SMEs increased to 605,340.  Minister Williamson says the figures contained in this year’s report were consistent with previous years and showed that New Zealand’s SMEs were continuing to steadily grow and contribute to the economy. 

For a copy of the report: http://www.med.govt.nz/templates/ContentTopicSummary____39289.aspx