Académique Documents
Professionnel Documents
Culture Documents
Business
Sector Report
2014
ONLINE: 978-0-478-41790-6
2
The Small Business Sector Report 2014
INTRODUCTION
Ministers foreword
I am pleased to present this report on the diverse and important small business sector
in New Zealand.
Some 97 per cent of enterprises in New Zealand are small businesses.
These 459,300 enterprises include those with no employees, micro
(1-5 employees), and small (6-19 employees) enterprises. Small
businesses make a significant contribution to the New Zealand labour
market, with more than 584,000 people employed in enterprises with
fewer than 20 people, making up 30 per cent of the workforce. These
figures do not include self-employed, which number over 380,000.
Small businesses have a distinct role to play in the New Zealand
economy and often provide a means of entry into business for new
entrepreneurial talent and a career for those who value economic
independence. Small businesses also act as specialist suppliers of
parts, components and services to large companies. Small businesses
contribute to variety and consumer choice for customers by serving
niche rather than mass markets. They provide an important source of
innovation and invention, something that all economies require.
This report provides an overview and snapshot of the small business
sector in New Zealand, with a focus on the Business Growth
Agenda (BGA) and how it affects small business. The report includes
international comparisons, international trade, innovation, ICT and
a summary of small businesses from the perspective of different
industries nationally.
More than 100 government initiatives support small businesses.
These include actions in the BGA and Result 9 work programme which
help many small businesses. Many of the initiatives the Government is
implementing through its BGA are focused on helping businesses
access the key ingredients they need to grow and succeed.
Hon Steven Joyce
Minister for Economic Development
Minister for Small Business
Minister of Science And Innovation
Minister for Tertiary Education, Skills and Employment
Associate Minister of Finance
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The Small Business Sector Report 2014
Contents
1
Introduction 6
Focus Areas
35
Industry Profiles
55
Further reading
103
11
INTRODUCTION
Report Objective
6
The Small Business Sector Report 2014
460,000 38
584,000
people
326,000
%
69
of all firms in NZ
The proportion of
More than
1/3
rd
of small
Service firms
since 2000 is
Growth in
Professional
100,000
>30
INTRODUCTION
Executive summary
General
economic Performance
Since 2000, some territorial authorities have seen a high growth rate in
the number of small businesses. For example, the Queenstown-Lakes
District has seen higher increases in the number of zero employee, micro
and small enterprises than other areas.
Much of the growth in small enterprises has been in the South Island,
in places such as Hurunui, Selwyn and Queenstown-Lakes District.
Over the same period, Ruapehu and Wairoa have experienced a
decrease in the number of small enterprises. These changes reflect
population shifts.
Small firms make a significant contribution to New Zealands
employment with 584,000 people employed in enterprises with fewer
than 20 people, making up 30 per cent of the workforce. These figures
do not include self-employed, which number over 386,000. The total
number of employees in New Zealand businesses with fewer than
20 people has not changed noticeably over the past decade. In contrast
there has been significant growth in employment in larger firms.
International Trade
New Zealands small population constrains the ability for New Zealand
businesses to grow domestically. The ability of businesses to enter
overseas markets is critical as it enables New Zealand businesses to
access larger markets.
Small businesses have higher birth and death rates than larger firms
and size has distinct effects on survival. For example approximately
25 per cent of zero-employee enterprises on average are still operating
after ten years, in contrast to about 50 per cent of businesses with
10-19 employees.
Over the past decade, the number of self-employed in the 20-29 and
30-39 age groups has steadily decreased. Numbers have increased in
the 50-59, 60-64 and 65+ age groups. Other data show a decline in the
number of self-employed leaving their business since 2009, particularly
the 30-39 and 40-49 age groups. This suggests more are staying in
business longer, but in the 30-39 age group fewer people are becoming
self-employed.
Small businesses tend to have higher worker turnover rates than larger
firms. This is likely to be related to the reduced scope for internal career
progress compared to larger firms, and the seasonal nature of some
industries where small businesses are prevalent. It may also reflect the
higher proportion of part-time and casual workers employed.
8
INTRODUCTION
1
as a common barrier to trade. Trade promotion agency New Zealand
Trade and Enterprise (NZTE) supports businesses that want to grow
and succeed internationally. Its services focus on refining strategy,
improving performance, building global networks and providing
in-market support. On average SMEs comprise around 80 per cent
of NZTEs customer base
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The Small Business Sector Report 2014
INTRODUCTION
Defining a business
Defining sector
A sector is a loose definition to describe businesses or organisations
that share common characteristics and/or produce similar products or
services. In this report, the sector of interest is all small businesses
within New Zealand.
Defining Industry
The term industry is used to describe a group of businesses who are
engaged in similar production activities. Industries are classified using
the Australian and New Zealand Standard Industrial Classification
(ANZSIC) system.
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The Small Business Sector Report 2014
Limitations/Scope of data
Generally, firm size (zero, micro, small, etc) has been defined based on
firm employee counts reported from the data source. However, some
data sources report employee count from business units rather than
from the firm as a whole. Business unit size has been used to
distinguish business unit employee count size measures from the
firm-based equivalent.
2.
3.
4.
Overview of
small businesses
in New Zealand
11
The Small Business Sector Report 2014
OVERVIEW
Enterprises
As in most other economies, nearly all New Zealand enterprises are small
Number of enterprises in 2013 categorised by employee numbers
Zero (0)
326,000
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
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The Small Business Sector Report 2014
Micro
(1-5)
97,400
Small (6-19)
35,900
Small-medium
(20-49)
8,800
Medium Large
(50-99) (100+)
2,640 2,120
OVERVIEW
2
The number of zero-employee enterprises has increased over the past decade but the number of employing enterprises has been stable
Number of enterprises by firm size, 2000 - 2013
Firm Size
(number of employees)
Enterprises (000s)
320
Zero (0)
75
300
Micro (1-5)
Small (6-19)
50
280
Small-medium (20-49)
Medium (50-99)
25
260
Large (100+)
0
2000
2005
2010
2000
2005
2010
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
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The Small Business Sector Report 2014
OVERVIEW
Zero-Employee Businesses
Zero-employee firms experiencing strong growth
As the name suggests, zero-employee businesses do not employ
any staff beyond the founder or owner. They play an important
commercial role in the economy. They are easy to establish, and
provide a practical and strategic purpose for a range of industries,
situations and firm sizes.
With some exceptions, they present more change and variability
across many kinds of measurement than other small businesses.
Enterprise survival rates provide a good example of this, with
zero-employee businesses showing much greater attrition over time.
The broad characteristics of New Zealand zero-employee businesses
are more or less common to comparative economies in the OECD.
Zero-employee businesses are also the most common firm size in
the United States, for example, comprising 21 million out of a total
27 million firms.
Zero-employee businesses can include importers, exporters,
manufacturers, plumbers, consultants and start-ups, property
investors, real estate agents and gardeners.
Industry dynamics, market forces and regulations may make it hard to
identify some businesses as zero-employee operations. For example,
a medium-sized dairy farm with five people working on it fulltime can
still be a zero-employee enterprise if those people are share-milkers,
contractors or unpaid family members of the farm owner.
Zero-employee businesses can also serve wider legal, accounting, risk
or tax purposes. It is common practice in the construction industry to
establish companies around particular commercial projects. But in
residential construction, considering the lack of scale, the number of
zero-employee firms probably reflects the high level of sole traders.
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The Small Business Sector Report 2014
OVERVIEW
2
Small businesses have a diverse range of ownership structures
All other entities include co-operative companies, joint ventures and consortia, branches of companies incorporated overseas, government-owned trading entities, central government, local authority trading enterprises,
local government incorporated and unincorporated societies and associations, and charitable trusts.
Large (100+)
Type of entity
Medium (50-99)
All Other
Entities
Individual
Proprietorship
Small-medium (20-49)
Partnership
Small (6-19)
Registered
Limited
Liability
Company
(non Co-op)
Micro (1-5)
Trusts/Estates
Zero (0)
0%
25%
50%
75%
100%
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The Small Business Sector Report 2014
OVERVIEW
2
Starts and closures in micro- and small
business have been relatively stable.
In contrast, zero employee starts and
closures have been more volatile, with
more closures than start ups since 2010.
Births and deaths for Micro-small and Zero employee firm sizes
Births and deaths for Micro-small
and Zero employee firm sizes
Micro-Small (1-19)
Zero (0)
60
40
20
2004
2006
2008
2010
2012
2004
Births
Source: Business demography statistics, Statistics New Zealand, 2013, custom data.
Notes: All numbers are provisional. Enterprise births and deaths for 2013 should be treated with caution.
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The Small Business Sector Report 2014
2006
Deaths
2008
2010
2012
OVERVIEW
2
The smaller the business, the lower the survival rate
Average enterprise survival rates by firm size
Firm Size
75%
Small-medium (20-49)
Small (1019)
50%
Small (69)
Micro (1-5)
25%
Zero (0)
0%
1
10
Years
Source: Business demography statistics, Statistics New Zealand, 2013. Access via Statistics New Zealand webpage.
Notes: All numbers are provisional. Survival rate is defined as the percentage of enterprise births in each reference period that survive into future reference periods in the business demography population. For full notes consult source data.
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The Small Business Sector Report 2014
OVERVIEW
Distribution
Distribution
Distribution
ofof
business
of
business
business
units
units
units
byby
size
by
size
size
and
and
and
region
region
region
in in
2013
in
2013
2013
Region
ZeroZero
(0) Zero
(0) (0)
Micro
Micro
(1-5)
Micro
(1-5) (1-5)
Small
Small
(6-19)
Small
(6-19)
(6-19)
Total
Total
Number
Total
Number
Number
of of of
Business
Business
Business
Units
Units
Units
1,000
1,0001,000
10,000
10,000
10,000
100,000
100,000
100,000
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
(20-49)
Medium
Medium
(50-99)
Medium
(50-99)
(50-99)
Large
Large
(100+)
Large
(100+)
(100+)
Percentage
Percentage
Percentage
of of of
Business
Business
Business
Units
Units
Units
60%60%60%
40%40%40%
20%20%20%
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. Business units are equivalent to geographic units. For full notes, consult Statistics New Zealand.
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The Small Business Sector Report 2014
OVERVIEW
Micro (1-5)
Growth Rate
7.5%
5.0%
Small (6-19)
Small-medium (20-49)
2.5%
0.0%
-2.5%
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. Business units are equivalent to geographic units. For full notes, consult Statistics New Zealand.
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The Small Business Sector Report 2014
OVERVIEW
employees
Small businesses employ a significant proportion of the total workforce.
Employee by firm size in 2013
Large
(100+)
916,000
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
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The Small Business Sector Report 2014
Small
(6-19)
358,000
Micro
(1-5)
226,000
Small-medium Medium
(50-99)
(20-49)
181,000
261,000
OVERVIEW
2
Most employment growth has been in large firms, while the number of people employed by small businesses has been stable
Employees by firm size, 2000 2013
Firm Size
(number of employees)
Employees (000s)
750
Large (100+)
Small (6-19)
500
Small-medium (20-49)
Micro (1-5)
Medium (50-99)
250
2000
2005
2010
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
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The Small Business Sector Report 2014
OVERVIEW
2
Around one third of the small business workforce is part-time
Percentage of employees working full time by firm size
70%
Firm Size
(number of employees)
68%
Small-medium (20-49)
Micro (1-5)
66%
Small (6-19)
64%
2009
2010
Source: Quarterly Employment Survey, Statistics New Zealand, 2013. Custom data supplied to MBIE
Notes: The 2009 year is an average of only the September and December quarters
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The Small Business Sector Report 2014
2011
2012
2013
OVERVIEW
2
Small businesses have more workers joining and leaving, although turnover rates of all firms have declined following the GFC
Worker turnover rate by firm size
The worker turnover rate is the ratio of the average number of new employees and those who have left to the total number of jobs. It is a good measure of workforce stability and the dynamism of a business.
Worker Turnover
18%
Micro (1-5)
Small (6-19)
Small-medium (20-49)
16%
Medium (50-99)
Large (100+)
14%
2000
2005
2010
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.. Data have been smoothed.
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The Small Business Sector Report 2014
OVERVIEW
2
Regardless of size some firms experience difficulties recruiting
Difficulty in recruiting by position and firm size, 2013
50%
Technicians and
associate professionals
40%
30%
Firm Size
(number of employees)
20%
10%
Small (6-19)
0%
Tradespeople and
related
50%
All other
Small-medium (20-49)
Medium (50-99)
40%
30%
Large (100+)
20%
10%
0%
Not difficult
Moderately
difficult
Source: Business Operations Survey, 2013. Access via Statistics New Zealand website
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The Small Business Sector Report 2014
Severely
difficult
Not difficult
Moderately
difficult
Severely
difficult
OVERVIEW
Self employed
Most self-employed people are in their 30s, 40s or 50s
Distribution of self-employed by age, 2000 2012
40 - 49
50 - 59
75
30 - 39
60 - 64
50
20 - 29
65 +
25
15 - 19
0
2000
2004
2008
2012
Source: Annual Linked Employer-Employee Data (LEED), custom data supplied by Statistics New Zealand.
Notes: 2012 data are provisional. Self-employed is defined as main income source in the tax year. Self-employed people are counted once, even when they receive self-employed income from two or more enterprises that birthed during the tax year.
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The Small Business Sector Report 2014
OVERVIEW
2
Self-employed people are staying in business longer
Self-employed attrition by age, 2009 2012
Age Group
40 - 49
50 - 59
4,000
30 - 39
60 - 64
20 - 29
2,000
65 +
15 - 19
0
2009
2010
2011
Source: Annual Linked Employer-Employee Data (LEED), custom data supplied by Statistics New Zealand.
Notes: 2012 data are provisional. Self-employed is defined as main income source in the tax year. Self-employed people are counted once, even when they receive self-employed income from two or more enterprises that birthed during the tax year.
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The Small Business Sector Report 2014
2012
OVERVIEW
90
Large (100+)
Medium (50-99)
60
Small-medium (20-49)
Small (6-19)
30
Micro (1-5)
Zero (0)
0
Larger Businesses
Small Businesses
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The Small Business Sector Report 2014
OVERVIEW
2
Mixed picture on reported increases in profitability by firm size
Per cent of companies reporting increase in profitability
50%
Firm Size
(number of employees)
40%
Large (100+)
Medium (50-99)
Small-medium (20-49)
30%
Small (6-19)
20%
2009
Source: Business Operations Survey, 2009 - 2013. Access via Statistics New Zealand website
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The Small Business Sector Report 2014
2010
2011
2012
2013
OVERVIEW
2
Salaries and wages are increasing
55,000
Firm Size
(number of employees)
50,000
Medium-large (50+)
Micro-small (1-19)
45,000
Small-medium (20-49)
40,000
2009
2010
2011
2012
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The Small Business Sector Report 2014
OVERVIEW
Debtterms
financeby financing type and firm size
Availability of finance on acceptable
100%
Debt finance
90%
100%
Firm Size
(number of employees)
Equity finance
Large (100+)
Firm Size
(number
of employees)
Medium
(50-99)
80%
90%
Small-medium (20-49)
Large (100+)
70%
80%
60%
70%
Small (6-19)
Medium (50-99)
Small-medium (20-49)
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
2009
2010
2011
2012
2013
60%
Source: Business Operations Survey, 2009 - 2013. Access via Statistics New Zealand website
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The Small Business Sector Report 2014
Small (6-19)
OVERVIEW
2
Recent signs of expansion after a subdued period.
Per cent of business that invested in expansion by firm size
Firm Size
(number of employees)
40%
Large (100+)
Medium (50-99)
Small-medium (20-49)
30%
Small (6-19)
2009
2010
2011
2012
2013
Source: Business Operations Survey, 2010 - 2013. Access via Statistics New Zealand website
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The Small Business Sector Report 2014
OVERVIEW
I wanted a total
lifestyle change from
what I was doing
I started it as an investment
strategy for the future
I started it as an
investment strategy for
the future
I was offered a
partnership opportunity
by someone else
Auckland based
Wellington based
Christchurch
Rest of NZ
Don't know
0%
10%
20%
30%
0%
10%
20%
Source: MYOB Business Monitor, Mind Your Own Business, 2013 (wave 2).
32
The Small Business Sector Report 2014
Source: MYOB Business Monitor, Mind Your Own Business, 2013 (wave 2).
30%
40%
OVERVIEW
2
Main reason for starting a new business, by age of business
MYOB Business Monitor respondents' main reason for
starting a new business, by age of business
I wanted a total
lifestyle change from
what I was doing
I started it as an
investment strategy for
the future
I thought that I could
make money from a hobby
or interest
I purchased a business
previously established
and owned by others
I took a redundancy from my
employment and used the
payout to start the business
I was offered a
partnership opportunity
by someone else
Don't know
0%
10%
20%
30%
40%
50%
Source: MYOB Business Monitor, Mind Your Own Business, 2013 (wave 2).
33
The Small Business Sector Report 2014
OVERVIEW
Case
Study
Miranda Grange
34
The Small Business Sector Report 2014
Focus
Areas
Small Business and Government
36
International Comparison
44
International Trade
46
Innovation 49
Deriving value from the Internet
51
35
Focus Areas
EXPORT
MARKETS
INNOVATION
INFRASTRUCTURE
SMALL
BUSINESSES
SKILLED
AND SAFE
WORKPLACES
NATURAL
RESOURCES
CAPITAL
MARKETS
36
The Small Business Sector Report 2014
Focus Areas
Innovation
Capital Markets
Export Markets
Natural Resources
A new six month limit for consent applications has been enabled
through the Resource Management Act. Fast-track processes for
simple consents are also being developed.
New workplace health and safety rules will mean less compliance
for businesses in low risk industries and benefit businesses with
excellent safety records.
Regulations for the safety and security of food are being reformed,
so that small businesses working in low-risk food areas will be
able to operate under food safety programmes.
The reform of the Te Ture Whenua Maori Act will improve the
productivity of collectively-owned Maori land.
37
The Small Business Sector Report 2014
Focus Areas
reduced telecommunication costs by using Voiceover Internet Protocol instead of multiple phone lines
greater reliability, with fewer calls and online queries dropping out or being interrupted
38
The Small Business Sector Report 2014
Focus Areas
Overhauled the online patents system. The online system for applying for, and managing, patents
has been reworked. Managed by the Intellectual Property Office of New Zealand, tasks that previously
took days can now be done instantly.
Released in August 2012, the Result Action Plan outlined two targets for the programme.
Set up myIR. Inland Revenue has launched a new online service for businesses, filing GST through
myIR Secure Online Services. By 31 January 2013 more than 70,000 businesses had filed over
150,000 GST returns.
Significantly improved the Companies Office website. Users can more easily get immediate
access to relevant information and complete compliance obligations.
Launched ONECheck. Business.govt.nzs ONECheck tool combines a company name, domain and
trade mark search in one place online.
Lower costs: Business costs from dealing with government will be cut by 25 per cent by 2017. The
plan aims to reduce, year-on-year, the effort required by businesses to work with government agencies.
Improve services for business: By July 2017 the key performance ratings for government services
to business will be similar to those used by leading private sector firms. Since July 2013, businesses
have been able to contribute to this target through an online feedback system.
Ninety per cent of businesses have contact with one or more government agencies at least once a year.
Thats 409,000 businesses. Government agencies interact with small-to-medium sized enterprises about
three million times every four months.
So far Government has:
Set up the New Zealand Business Number (NZBN) system. This is a central part of the Result 9
programme. It aims to make it easier, quicker, and less complicated for businesses to deal with the
Government. All businesses, government agencies and commercial entities in New Zealand will
eventually receive an NZBN. The 13-digit number will become the single identifier for each entity
when it interacts with government agencies and other businesses. The next steps are to integrate all
registration services across Inland Revenue, MBIE and ACC so businesses will only need to supply key
information once, saving time and expense. In December 2013, 1.1 million companies on the New
Zealand Companies Office register were allocated an NZBN. On average, 3000 to 4000 newlyincorporated companies are expected to get NZBNs each month. By 2016 businesses will only have
to provide government with their information once. The number will automatically be shared across
government agencies.
39
The Small Business Sector Report 2014
Focus Areas
3
Business Transformation Project
The Inland Revenue Business Transformation Programme aims to make it as easy as possible for
New Zealanders to file and pay their taxes on time, receive their correct entitlements and cut the
costs of compliance.
There are 14 regional business partners around the country to help local businesses in their areas grow
and innovate with expert advice and access to funding.
The major 10-year programme is changing Inland Revenues policies, processes, platforms and service
delivery. The transformation aims to significantly improve how business, customers and third parties work
with Inland Revenue. It also aims to contribute to the Better Public Services and the all-of-government
Information & Communications Technology (ICT) strategy.
Benefits will include:
Improved customer experience. The programme aims to provide certainty to customers that they
have met obligations, significantly simplify customer requirements, and improve customers experience
with Inland Revenue and government;
Regional Business Partners have been set up by New Zealand Trade & Enterprise (NZTE) and
Callaghan Innovation to be local hubs of business development know-how and research and development
(R&D) expertise.
Each partner works with local businesses in their region to give advice, support and access to funding to
help them grow their businesses.
The Regional Business Partners are:
Northland Inc
Economic benefits to New Zealand. The project aims to reduce the time businesses and other
customers spend on tax compliance. This should decrease customer compliance costs associated
with meeting tax and social policy obligations.
Improved revenue system integrity. Simpler systems will encourage voluntary compliance.
The project also aims to reduce fraud associated with filing incorrect tax information, not filing
required obligations, or obtaining social entitlements fraudulently.
Venture Taranaki
Vision Manawatu
Grow Wellington
Venture Southland
Reduced time to implement policy initiatives. Policy changes within Inland Revenue will be
introduced and implemented faster and more cost-effectively.
Financial benefits to the Crown. Increased compliance, improved accuracy of tax assessments,
reduced numbers of customers in debt, and productivity savings for Inland Revenue will lift
Crown revenue
Reduced risk of operational failure.
Inland Revenue collects approximately 80 per cent of core Crown revenue (or approximately $49 billion)
and reaches more New Zealanders than any other agency.
40
The Small Business Sector Report 2014
Through the Regional Business Partners, qualified small businesses can access capability vouchers for
expertise and training worth up to $5,000 from over 700 accredited providers around the country. They
can also apply for up to $5,000 worth of Callaghan Innovation business research anddevelopment grants.
http://www.business.govt.nz/support-and-advice/advice-mentoring/regional-business-partners
Focus Areas
3
New Zealand Trade and Enterprise (NZTE)
Business.govt.nz
NZTE is the governments international business development agency. It offers a range of services
to new businesses and those looking to grow and internationalise, including exporters and high-growth
businesses. These include providing information, training, mentoring services, advice, and funding. NZTEs
knowledge of overseas markets and its contacts overseas enable them to actively connect New Zealand
businesses with trade and investment opportunities. NZTE also offers specialised services for investors
looking to invest in New Zealand business ventures. www.nzte.govt.nz
Business.govt.nz is a first-stop shop for small businesses wanting to access all the government-related
advice and support they need to set up, operate and grow.
Callaghan Innovation
Callaghan Innovation accelerates the commercialisation of innovation by firms in New Zealand by providing
businesses with a single front door to the innovation system, working in partnership with New Zealand
Trade and Enterprise, economic development agencies, business incubators, universities, polytechnics,
Crown Research Institutes, the venture capital community and industry associations. It funds business
research and development, advises businesses on innovation and provides research and technical services.
www.callaghaninnovation.govt.nz
41
The Small Business Sector Report 2014
Focus Areas
Case
Study
Green
Meadows
Beef
42
The Small Business Sector Report 2014
Photo Credit
Green Meadows Beef now has a strategic plan with goals and
targets to help sustainably grow its business.
www.greenmeadowsbeef.co.nz
Focus Areas
Case
Study
90-day
employment
trial period
Employers surveyed in the report said the reduced risk from trial
periods allowed them to take a chance on trialling a new position.
Small businesses went one step further. They indicated they
were more likely than larger firms to not have filled the position
if they had not been able to employ someone on a trial period.
43
The Small Business Sector Report 2014
Focus Areas
3 International comparison
New Zealand small businesses share of employment is typical
Greece (2007)
Canada (2007-09)
Italy
Brazil (2006-08)
Israel (2006-08)
Portugal
Spain
Luxembourg
Australia (2011)
Slovak Republic
Iceland
Hungary
Belgium
Portugal
Poland
Sweden
Ireland
Belgium
Estonia
Slovenia
Netherlands
Italy
Czech Republic
Austria
Sweden
Finland
Denmark
Austria
France
Finland
Turkey
Czech Republic
Denmark
New Zealand
Slovenia
Japan (2009-11)
Germany
United Kingdom
Norway
Luxembourg
Spain
Switzerland
United Kingdom
Hungary
Israel (2009)
Poland
Chile (2009-10)
Brazil
Russian Federation
SME
80%
0%
25%
50%
75%
Large
70%
60%
50%
40%
100%
30%
20%
10%
0%
10%
20%
30%
40%
50%
60%
70%
1-9
10-19
20-49
50-249
250+
Source: OECD Science, Technology and Industry Scoreboard 2013, OEC, 2013. Access via OECD iLibrary
Notes: Data refer to the number of persons employed, except for New Zealand, the Russian Federation and the United States, which use number of employees and
therefore exclude the working-proprietors without employees. For full notes regarding data, consult source material.
44
The Small Business Sector Report 2014
Innovation
Types
Marketing or
organisational
innovation only
Source: OECD Science, Technology and Industry Scoreboard 2013, OEC, 2013. Access via OECD iLibrary
Notes: The OECD defines SMEs as firms with fewer than 250 employees. For full notes regarding data, consult source material.
Product or process
innovation only
Focus Areas
3
New Zealand SMEs are slightly less collaborative
United Kingdom
Estonia
Finland
New Zealand
Japan (2009-10)
Norway
Israel (2006-08)
Spain (2010)
Slovak Republic
Slovenia
Slovenia
Slovak Republic
Sweden
Hungary
Canada (2010)
Denmark
Czech Republic
Estonia
Australia (2010)
Austria
Belgium (2009)
Hungary
Poland
France
Portugal (2010)
Iceland
Korea (2005-07, manufacturing)
Netherlands (2010)
Czech Republic
Switzerland (2008)
Norway
Austria (2009)
Belgium
Denmark (2009)
Luxembourg
Korea
Ireland
Italy (2010)
Chile (2010)
Turkey
France (2010)
Netherlands
Switzerland (2009-11)
Finland
Poland
Sweden (2009)
Portugal
Luxembourg (2009)
Germany
Germany (2010)
Australia (2011)
Spain
Suppliers
Japan
Clients
0%
Italy
10%
20%
30%
40%
50%
60%
70%
80%
Chile (2009-10)
Brazil (2006-08)
40%
30%
20%
10%
0%
10%
20%
30%
Source: OECD Science, Technology and Industry Scoreboard 2013, OEC, 2013. Access via OECD iLibrary
Notes: The OECD defines SMEs as firms with fewer than 250 employees. For full notes regarding data, consult source material.
40%
50%
Firms with fewer than 50 employees
Source: OECD Science, Technology and Industry Scoreboard 2013, OEC, 2013. Access via OECD iLibrary
Notes: National statistical agencies use different minimum thresholds for inclusion in R&D surveys and estimates. For full notes regarding data, consult source material.
45
The Small Business Sector Report 2014
Focus Areas
3 International Trade
Larger firms generate overseas income more often than
smaller firms. Around 80% of small firms have never
generated overseas income
Sale of manufactured,
processed, or finished goods
for use by other businesses
Generated overseas
income in the last
financial year
Provision of services
Never generated
overseas income
0%
20%
40%
60%
80%
Small (6-19)
Small-medium (20-49)
Medium (50-99)
Large (100+)
Sale of manufactured,
processed, or finished goods
for personal or household use
Licencing / franchising
arrangements and royalties
Other
10%
20%
30%
40%
50%
Firm Size
(number of employees)
Source: Business Operations Survey, 2011. Access via Statistics NZ website
46
The Small Business Sector Report 2014
Small
)
(6-19
Small-medium )
(20-49
Medium )
(50-99
Large (100+)
Focus Areas
3
Of those businesses not earning overseas income, the main
reason identified is that they are not interested or their
business is not suitable
distribution networks
Small-medium (20-49)
Distance from markets
Small (6-19)
the future
2011
Firm Size
(number of employees
20%
40%
60%
Large (100+)
Medium (50-99)
Small-medium (20-49)
Small (6-19)
Overseas government
regulations or tariffs
Medium (50-99)
Small-medium (20-49)
Small (6-19)
Inability to rapidly
increase supply
Other
0%
20%
40%
60%
Per cent of businesses interested but not currently generating overseas income
47
The Small Business Sector Report 2014
Focus Areas
Going
for
Growth
Denheath
Desserts
48
The Small Business Sector Report 2014
www.denheath.co.nz
Focus Areas
Innovation
Acquired computer
hardware and software
Organisational or managerial
Firm Size
(number of employees)
Operational process
Large (100+)
Medium (50-99)
Small-medium (20-49)
Goods or services
Small (6-19)
Employee training
Implemented new business
strategies or management
techniques
Acquired machinery and
equipment
Marketed the introduction
of new goods or services
Marketing method
0%
10%
20%
30%
40%
Organisational restructure
Market research
10%
20%
30%
Large (100+)
Medium (50-99)
Small-medium (20-49)
Small (6-19)
49
The Small Business Sector Report 2014
Focus Areas
3
The cost of product development and
market entry is the largest barrier
to innovation
Going
for
Growth
Ashford
Handicrafts
Cost to
develop or
introduce
Lack of
management
resources
Lack of
appropriate
personnel
Government
regulation
Photo credit
Lack of
marketing
expertise
Lack of
information
Lack of
cooperation
with other
businesses
Access to
intellectual
property
rights
0%
5%
10%
15%
20%
Firm Size
(number of
employees)
Large (100+)
Medium (50-99)
Small-medium (20-49)
Small (6-19)
50
The Small Business Sector Report 2014
Focus Areas
Business
internet
activities
Business internet
activities
by firm
size, 2012
Business website
features by firm size, 2012
Business website features by firm size, 2012
Goods or
services
information
Finance
Customer
information
collection
Internal or
external
recruitment
Ordering goods
or services
Staff training
Online payment
Sharing
information
within the
business
Online
after-sales
support
Sharing
information
with other
organisations
Information
for repeat
customers
Internet used
for other
purposes
Information
about privacy
or security
0%
25%
50%
75%
100%
0%
20%
Firm Size
(number of
employees)
60%
80%
Large (100+)
Medium (50-99)
Small-medium (20-49)
Small (6-19)
40%
Firm Size
(number of
employees)
Large (100+)
Medium (50-99)
Small-medium (20-49)
Small (6-19)
51
The Small Business Sector Report 2014
Focus Areas
3
Small businesses make extensive use of internet channels to interact with government
with government
Interaction Interaction
with government
via internet by interaction type and firm size, 2012
via internet by interaction type
and firm size, 2012
Obtaining
information
Downloading
forms
Completing and
seding forms
Making online
payments
None
0%
25%
50%
75%
Firm Size
(number of
employees)
Large (100+)
Medium (50-99)
Small-medium (20-49)
Small (6-19)
52
The Small Business Sector Report 2014
Focus Areas
Going
for
Growth
Augen
Software
Group
Photo credit
53
The Small Business Sector Report 2014
54
The Small Business Sector Report 2014
Industry
Profiles
55
The Small Business Sector Report 2014
Industry profiles
4 Industry overview
Small businesses play a significant role in nearly all of New Zealands industries
The proportion of small business in industry sectors broadly
correlates to New Zealands highest value sectors.
Small businesses are found across the economy, although they tend
to have a higher representation in some industries. If zero-employee
businesses are excluded, the proportion of small businesses in
industries mostly correlates to the countrys highest value sectors
in real terms. For example, the highest proportion of small businesses
is found in high-value industries such as professional services, retail
trade, construction and agriculture, forestry and fishing. Manufacturing
and rental, hiring and property services (the two highest value
industries in real terms) are exceptions.
Other than education and training, where small businesses
(6-19 employees) are the most common size, the firm size pattern
is similar for most industries, with them mostly being comprised of
zero employees, followed by micro businesses, small businesses,
small-medium businesses and then a comparatively small number
of medium and large businesses.
Infrastructure-intensive industries tend to have a lower number
of businesses of all sizes due to the high barriers to entry and exit
that they entail. The mining and petroleum, and utilities industry
are both characteristic of this structure. The nature and scale of
government services means there is also a low number of small
businesses in the government administration, defence and public
safety industry classification.
The key variables in calculating value add are: sales for
determining gross output; and purchases for determining
intermediate consumption. Value added being calculated as
gross output minus intermediate consumption.
Firm Size
(number of employees)
Other services
Manufacturing
Zero (0)
Accommodation & restaurants
Micro (1-5)
Health
Small (6-19)
Wholesale trade
Small-medium (20-49)
Medium (50-99)
Large (100+)
*The Australian and New Zealand Standard Industrial Classification (ANZSIC) 2006 is used to compile and analyse
industry statistics in New Zealand. Within ANZSIC there are 19 core industries in which industry can be reported on at
its highest level.
56
The Small Business Sector Report 2014
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
25,000
50,000
75,000
Number of enterprises
100,000
industry profiles
Average
Average
number
number
of
of
0
-- 5
Average
Average
number
number
of employees
employees
of employees
employees
0 -- 5
5 in
in0
02013
2013
5 in
in 2013
2013
3
3
4
4
3
3
Professional
Professional
&
&
Professional
Professional
&
&
administrative
administrative
administrative
administrative
services
services
services
services
Arts,
Arts, recreation
recreation
&
&
Arts, recreation
recreation
Arts,
&
&
other
services
services
other other
other
services
services
Construction
Construction
Construction
Construction
2
2
2
2
Average
Averagenumber
numberof
ofemployees
employeesper
perfirm
firm
Average
number
numberof
ofemployees
employees
per
perfirm
firm
Average number of employees perAverage
firm
Average
number of employees per firm
4
4
20
20
20
20
16
16
16
16
11
Finance
Finance
&
&
Finance
Finance
& insurance
insurance
& insurance
insurance
Agriculture,
Agriculture,
Agriculture,
Agriculture,
forestry
forestry
&
&
forestry
forestry
& fishing
fishing
& fishing
fishing
11
Rental,
Rental,
hiring
hiring
&
&
Rental,
Rental,
hiringhiring
&
&
property
property
services
services
property
property
services
services
15.0
15.0
12.5
12.5
12.5
12.5
7.5
7.5
7.5
7.5
5.0
5.0
5.0
5.0
2000 2000
2005 2005
2010 2010
2000 2005
2005 2010
2010
2000
Average
Average
number
number
of
of
50+
2013
Average
Average
number
number
of employees
employees
of employees
employees
50+ in
in50+
50+
2013in
in 2013
2013
105
105
Education
Education
Education
Education
12
12
8
8
8
8
Health
Health
HealthHealth
Manufacturing
Manufacturing
Manufacturing
Manufacturing
Mining
&
&
MiningMining
Mining
& petroleum
petroleum
& petroleum
petroleum
extraction
extraction
extraction
extraction
2000
2000 2000
2005 2005
2010 2010
2000 2005
2005 2010
2010
Retail
Retail
trade
trade &
&
Retail Retail
trade &
&
trade
accommodation
accommodation
accommodation
accommodation
Media
Media
&
&
MediaMedia
&
&
telecommunications
telecommunications
telecommunications
telecommunications
Wholesale
Wholesale
trade
Wholesale
Wholesale
trade trade
trade
Transport
Transport
&
&
Transport
Transport
&
&
logistics
logistics
logistics
logistics
12
12
2000
2000 2000
2000 2005
2005 2005
2005 2010
2010 2010
2010
Average
Average
number
number
of
of
10
in
50
Average
Average
number
number
of employees
employees
of employees
employees
10 -- 50
5010
10
in--2013
2013
50 in
in 2013
2013
Utilities
Utilities
Utilities
Utilities
Average
Average
number
number
of
of
5
5
10
Average
Average
number
number
of employees
employees
of employees
employees
5 -- 10
10 in
in
5 --2013
2013
10 in
in 2013
2013
10.0 10.0
10.0
10.0
100
100
100
100
95
95
95
95
90
90
90
90
85
85
85
85
Government
Government
Government
Government
administration,
administration,
administration,
administration,
defence,
defence,
public
defence,
defence,
publicpublic
public
safetysafety
safety
safety
2000
2000 2005
2005 2010
2010
2000 2000
2005 2005
2010 2010
Average represents total number of employees divided by total number of firms for each industry.
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
57
The Small Business Sector Report 2014
Industry profiles
Number of firms
Growth Growth
trends for
trends
different
for different
size firms
size firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Small
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
2,000
0
2,000
0
4,000
2,000
2,000
4,000
6,000
4,000
4,000
6,000
2010
2005
2005
2010
2010
2010
30.0%
30.0%
27.5%
27.5%
25.0%
25.0%
25.0%
25.0%
22.5%
22.5%
22.5%
22.5%
Micro
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Small
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
2000
2000
100
100
2005
2005
2005
2005
2010
2010
2010
2010
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
Trends in
Trends
value in
add
value
per add
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
120
120
110
110
2000
2000
2005
2000
2000
2005
Index
Index
Index
Index
140
140
130
130
2000
2000
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
100
100
27.5%
27.5%
10,0000
20,000
10,000
30,000
20,000
40,000
30,000
50,000
40,000
10,000
30,000
40,000
50,000
0 20,000
10,000
20,000
30,000
40,000 50,000
50,000
Trends in
Trends
contribution
in contribution
to GDP and
to GDP
firmand
sizefirm size
100
100
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Zero
Zero (0)
(0)
120
120
110
110
Smoothed
Smoothed turnover
turnover
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
140
140
130
130
Micro
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Worker turnover
Worker turnover
rate
rate
30.0%
30.0%
Large
Large (100+)
(100+)Large
Large (100+)
(100+)
0
0
Zero (0)
(0)
Zero
NumberNumber
of Employees
of Employees
Zero
Zero (0)
(0)
Zero (0)
(0)
Zero
120
120
2000
2000
Number of employees
Micro
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
100
100
6,000
6,000
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Small
58
120
120
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Small
140
140
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: These GDP data include retail trade as well as accommodation and restaurants, as more detailed data
were unavailable. Chain-volume series expressed in 1995/96 prices. All numbers from business demography
statistics are provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
140
140
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
Smoothed
Smoothed turnover
turnover
4 Accommodation
and restaurants
36,000
36,000
36,000
36,000
32,000
32,000
32,000
32,000
28,000
28,000
28,000
28,000
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
Micro-smallMicro-small
Micro-small
(1-19)
(1-19)
Micro-small
(1-19)
(1-19)
Retail
&
trade
Retail trade
tradeRetail
Retail
&
trade &
&
Total industry
industry
Total
GDP
industry GDP
GDP
Total
Total
GDP
industry
accommodation
accommodation
GDP
GDP
accommodation
accommodation
GDP
GDP
contributioncontribution
contribution
contribution
24,000
24,000
contribution
contribution
24,000
24,000
contributioncontribution
Retail
&
trade
Retail trade
tradeRetail
Retail
&
trade &
&
Total
industry
Total
employees
industry
employees
Total
industry
Total
employees
industry
employees
2009
2010
2009
accommodation
accommodation
employees employees
employees
2009
2010
2009
accommodation
accommodation
employees
per firm
firm
per firm
firm
per
per
per
per
per firm
firm
per firm
firm
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
2011
2010
2011
2010
2012
2011
2012
2011
2012
2012
industry profiles
Case
Study
Wildfoods
Festival
59
The Small Business Sector Report 2014
Industry profiles
Number of firms
Growth Growth
trends for
trends
different
for different
size firms
size firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Small
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
0
0
2,500
0
2,500
0
5,000
2,500 7,500
5,000 10,000
7,500
5,000
2,500
7,500
5,000
10,000
7,500
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Small
Micro
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
60
The Small Business Sector Report 2014
Zero
Zero (0)
(0)
20,000
0
20,000
0
20,000
40,000
40,000
20,000
160
160
140
140
120
120
100
100
2000
2000
2000
2000
2005
2005
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
2005
2005
2010
2010
2010
2010
30%
30%
25%
25%
20%
20%
35%
35%
Large
Large (100+)
(100+)Large
Large (100+)
(100+)
30%
30%
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
25%
25%
Small
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
20%
20%
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Micro
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
120
120
100
100
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Small
110
110
2000
2000
40,000
40,000
Trends in
Trends
contribution
in contribution
to GDP and
to GDP
firmand
sizefirm size
Index
Index
Index
Index
140
140
Zero
Zero (0)
(0)
Worker turnover
Worker turnover
rate
rate
35%
35%
Zero
Zero (0)
(0)
Large
Large (100+)
(100+)Large
Large (100+)
(100+)
0
0
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
130
130
2000
2000
10,000
10,000
NumberNumber
of Employees
of Employees
Zero
Zero (0)
(0)
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Micro
150
150
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Number of employees
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: These GDP data include professional services as well as administrative services, as more detailed data
were unavailable. Chain-volume series expressed in 1995/96 prices. All numbers from business demography
statistics are provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
110
110
Smoothed
Smoothed turnover
turnover
Zero (0)
(0)
Zero
130
130
Trends in
Trends
value in
add
value
per add
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
150
150
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
This industry has one of the highest worker turnover rates although
smaller firms experience lower turnover than larger firms. This may
be due to the temporary or part-time nature of the work involved.
Smoothed
Smoothed turnover
turnover
4 Administration services
50,000
50,000
50,000
50,000
45,000
45,000
45,000
45,000
Micro-small
(1-19)
(1-19)
Micro-smallMicro-small
Micro-small
(1-19)
(1-19)
40,000
40,000
40,000
40,000
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
35,000
35,000
35,000
35,000
Professional
&
&
ProfessionalProfessional
Professional
&
&
Total
industry
Total
GDP
industry
GDP
Total
industry
Total
GDP
industry
GDP
administrative
administrative
services
services
administrative
administrative
services
services
contributioncontribution
GDP
GDP
GDP contribution
contribution
GDP contribution
contribution contributioncontribution
30,000
30,000
30,000
30,000
Professional
&
&
ProfessionalProfessional
Professional
&
&
Total industry
industry
Total
employees
industry employees
employees
Total
Total
employees
industry
2009
2010
2009
administrative
administrative
services
services
2009
2010
2009
administrative
administrative
services
services
per firm
per firm
firm
per
employees
employees
firm
per
employees per
per
employees
firm
per firm
firm per firm
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
2011
2010
2011
2010
2012
2011
2012
2011
2012
2012
industry profiles
Case
Study
Shine People
Consulting
Denise Hartley-Wilkins
61
The Small Business Sector Report 2014
Industry profiles
Number of firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Small
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
Growth Growth
trends for
trends
different
for different
size firms
size firms
150
150
125
125
100
100
10,000
30,000
40,000
0 20,000
10,000
20,000
30,000 40,000
40,000
10,000
0
20,000
10,000
30,000
20,000
40,000
30,000
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
125
125
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Small
100
100
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Micro
Zero
Zero (0)
(0)
2000
2005
2000
2005
2000
2000
2005
2010
2005
2010
Zero
Zero (0)
(0)
2010
2010
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Small
Micro
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Zero
Zero (0)
(0)
0
0
30%
30%
27%
27%
24%
24%
10,000
0
10,000
0
20,000
10,000
20,000
10,000
30,000
20,000
30,000
20,000
30,000
30,000
110
110
100
100
130
130
Index
Index
Index
Index
120
120
120
120
110
110
100
100
2000
2000
2000
2000
2005
2005
2005
2005
2010
2010
2010
2010
Value
Value added
added per
per employee
employee ($)
($)
140
140
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
27%
27%
Small
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Micro
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
Trends in
Trends
contribution
in contribution
to GDP and
to GDP
firmand
sizefirm size
130
130
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
30%
30%
2000
2000
33%
33%
24%
24%
Agriculture,Agriculture,
Agriculture,
forestry &
& forestry
forestry &
& Total
Total industry
industry
Total
GDP
industry GDP
GDP
Agriculture,
forestry
Total
GDP
industry
fishing GDP
GDPfishing
fishing
contribution
GDP contribution
contributioncontribution
contributioncontribution
contribution
fishing
contribution
GDP
Trends in
Trends
value in
add
value
per add
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
Zero
Zero (0)
(0)
33%
33%
Smoothed
Smoothed turnover
turnover
Large
Large (100+)
(100+)Large
Large (100+)
(100+)
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
75
75
NumberNumber
of Employees
of Employees
There has also been a general reduction in the number of zeroemployee and micro-sized dairy cattle farms and an increase in
small (6-19) enterprises.
62
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
150
150
75
75
Number of employees
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
Smoothed
Smoothed turnover
turnover
4 Agriculture, Forestry
& Fishing
90,000
90,000
90,000
90,000
Micro-small
(1-19)
(1-19)
Micro-smallMicro-small
Micro-small
(1-19)
(1-19)
70,000
70,000
70,000
70,000
50,000
50,000
50,000
50,000
Agriculture,Agriculture,
Agriculture,
forestry &
& forestry
forestry &
& Total
Total industry
industry
Total
employees
industry employees
employees
Agriculture,
forestry
Total
employees
industry
fishing employees
employees
fishing per
per
employees
firm
per firm
firm
per firm
firm
per firm
firm
fishing
fishing
employees
firm
per
per
per
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
2009
2009
2010
2009
2010
2009
2011
2010
2011
2010
2012
2011
2012
2011
2012
2012
industry profiles
Regional concentration
of business
units in agriculture,
forestry
fishing
Regional
concentration
of business
units and
in agriculture,
Marlborough
Tasman
Gisborne
West Coast
Nelson
0.0
2.5
5.0
7.5
10.0
12.5
20%
10%
63
The Small Business Sector Report 2014
Industry profiles
Going
for
Growth
Southern
Clams
64
The Small Business Sector Report 2014
the bio-mass in Blueskin Bay since 1984 with the latest report
showing a slight increase in total bio-mass.
Southern Clams is committed to carbon neutrality and has
invested in its own forestry venture. In 2011 its production
footprint became carbon neutral. The business planted
83 hectares of bio-diverse forestry in the Otago region
and plans to have planted a total of 300 hectares by 2018.
www.nzclams.com
industry profiles
Number of firms
NumberNumber
of firmsof firms
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
210
210
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
180
180
150
150
120
120
4,000
2,000
2,000
4,000
6,000
4,000
4,000
6,000
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
22.5%
22.5%
20.0%
20.0%
20.0%
20.0%
17.5%
17.5%
17.5%
17.5%
5,000
10,000
10,000
5,000
130
130
120
120
110
110
100
100
2000
2000
2000
2000
2005
2005
2010
2005
2005
2010
2010
2010
2005
2005
2010
2010
2010
2010
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
2000
2000
10,000
10,000
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
2000
2005
2005
2000
2005
2010
2010
2005
2010
2010
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Arts, recreation
recreation
Arts, recreation
recreation
& other
other &
& other
other Total
Total
industry
Arts,
Arts,
&
contribution
contribution
services GDP
GDP
services
contribution
GDP contribution
contribution
contribution
contribution
services
services
contribution
GDP
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
0
5,000
0 5,000
Value
Value added
added per
per employee
employee ($)
($)
110
110
100
100
2005
2000
2000
2005
22.5%
22.5%
Zero
Zero (0)
(0)
140
140
Index
Index
Index
Index
120
120
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
25.0%
25.0%
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
130
130
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
25.0%
25.0%
Zero (0)
(0)
Zero
WorkerWorker
turnover
turnover
rate rate
Smoothed
Smoothed turnover
turnover
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: These GDP data include other services as well as art and recreational services, as more detailed data
were unavailable. Chain-volume series expressed in 1995/96 prices. All numbers from business demography
statistics are provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Zero (0)
(0)
Zero
120
120
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
0
0
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
90
90
NumberNumber
of Employees
of Employees
Zero
Zero (0)
(0)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
150
150
2000
2000
6,000
6,000
Number of employees
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
180
180
90
90
2,000
0
2,000
0
210
210
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Smoothed
Smoothed turnover
turnover
70,000
70,000
70,000
70,000
60,000
60,000
60,000
60,000
50,000
50,000
50,000
50,000
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
40,000
40,000
40,000
40,000
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
30,000
30,000
30,000
30,000
Arts,
Arts,
&
Arts, recreation
recreation
Arts, recreation
recreation
& other
other &
& other
other Total
industry
Totalemployees
employees
industry employees
employees
industry
Total
industry
services employees
employees
services employees
employees
per
per Total
services
services
per
per
per firm
firm per
per firm
firm
per
firm
firm
firm
firm
2009
2009
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
2009
2010
2009
2010
2010
2011
2010
2011
2012
2011
2012
2011
2012
2012
65
The Small Business Sector Report 2014
Industry profiles
Case
Study
Otago Central
Rail Trail
66
The Small Business Sector Report 2014
horse riding and high country tours. Others provide farm stays,
farm visits, cafes and accommodation.
The trail is a significant tourism attraction in central Otago
and contributes an estimated $12 million revenue to the local
economy. It has attracted up to 1,000 full-time, part-time and
seasonal jobs into the region, according to a 2008 economic
impact study.
The average rail trailer spends about $472 during their threenight stay in the area.
industry profiles
Number of firms
NumberNumber
of firmsof firms
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
180
180
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
10,000
0
10,000
0
20,000
10,000
10,000
20,000
30,000
20,000
20,000
30,000
160
160
140
140
120
120
100
100
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
140
140
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
120
120
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
100
100
Zero
Zero (0)
(0)
2005
2000
2000
2005
2010
2005
2005
2010
Zero
Zero (0)
(0)
2010
2010
NumberNumber
of Employees
of Employees
WorkerWorker
turnover
turnover
rate rate
18%
18%
18%
18%
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Zero
Zero (0)
(0)
Zero
Zero (0)
(0)
0
0
10,000
0
10,000
0
10,000
20,000
20,000
10,000
20,000
30,000
30,000
20,000
16%
16%
14%
14%
12%
12%
120
120
100
100
2000
2000
2000
2000
2005
2005
2005
2005
Construction
Construction
GDP
GDP
Construction
Construction
GDP
GDP
contribution
contribution
contribution
contribution
2010
2010
2010
2010
Value
Value added
added per
per employee
employee ($)
($)
100
100
Index
Index
Index
Index
120
120
140
140
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
14%
14%
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
12%
12%
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
140
140
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
16%
16%
2000
2000
30,000
30,000
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Total
Total
industry
contribution
contribution
contribution
contribution
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Smoothed
Smoothed turnover
turnover
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
160
160
2000
2000
30,000
30,000
Number of employees
For small businesses, the greatest challenge in the near future is the
unprecedented workload that will be placed on the construction
industry. This is being driven by the Canterbury rebuild, the demand
in Auckland for housing and infrastructure, earthquake-strengthening
work and the weather-tightness remedial work.
180
180
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Smoothed
Smoothed turnover
turnover
Construction
90,000
90,000
90,000
90,000
85,000
85,000
85,000
85,000
80,000
80,000
80,000
80,000
75,000
75,000
75,000
75,000
70,000
70,000
70,000
70,000
Construction
Construction
employeesemployees
employees
per
per
Total industry
industry
Totalemployees
employees
industry employees
employees
Construction
Construction
employees
per
per
Total
Total
industry
firm
firm
per firm
firm per
per firm
firm
firm
firm
per
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
2009
2009
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
2009
2010
2009
2010
2010
2011
2010
2011
2012
2011
2012
2011
2012
2012
67
The Small Business Sector Report 2014
Industry profiles
Auckland
Canterbury
Wellington
Waikato
Bay of Plenty
Otago
Manawatu-Wanganui
Northland
Hawke's Bay
Taranaki
Southland
Tasman
Nelson
Marlborough
Gisborne
West Coast
0
10
15
68
The Small Business Sector Report 2014
industry profiles
Number of firms
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
This industry has one of the lowest numbers of small firms. The majority
of enterprises such as schools and universities are publicly owned.
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
The majority of firms in the adult and community education subsector are small. They provide a wide variety of services ranging from
tutoring, to sports and recreation coaching, and artistic instruction.
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
140
140
120
120
100
100
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
500
0
5000
1,000
500 1,500
1,000 2,000
1,500 2,500
2,000
1,000
500
1,500
1,000
2,000
1,500
2,500
2,000
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
20%
20%
15%
15%
20,000
40,000
40,000
20,000
60,000
40,000
60,000
40,000
60,000
60,000
130
130
120
120
110
110
100
100
2000
2000
2010
2010
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
20%
20%
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
15%
15%
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
2005
2005
2005
2005
2010
2010
2010
2010
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
140
140
2000
2000
2010
2005
2005
2010
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
2000
2000
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
20,000
0
20,000
0
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
Index
Index
Index
Index
110
110
100
100
2005
2000
2000
2005
Zero
Zero (0)
(0)
120
120
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
100
100
25%
25%
Smoothed
Smoothed turnover
turnover
Smoothed
Smoothed turnover
turnover
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
130
130
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
WorkerWorker
turnover
turnover
rate rate
25%
25%
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
140
140
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
120
120
2000
2000
2,500
2,500
NumberNumber
of Employees
of Employees
0
0
Zero (0)
(0)
Zero
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Number of employees
Zero
Zero (0)
(0)
Zero (0)
(0)
Zero
140
140
80,000
80,000
80,000
80,000
60,000
60,000
60,000
60,000
40,000
40,000
40,000
40,000
20,000
20,000
20,000
20,000
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Total
Total
industry
Education Education
Education
GDP contribution
contribution
GDP contribution
contribution
Education
GDP
GDP
contribution
contribution
contribution
contribution
Education Education
Education
employeesemployees
employees
per
per Total
Total industry
industry
Totalemployees
employees
industry employees
employees
Education
employees
per
per
Total
industry
firm
firm
per
per firm
firm
firm
firm
per firm
firm per
0
0
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
0
0
2009
2009
2009
2010
2009
2010
2010
2011
2010
2011
2012
2011
2011
2012
2012
2012
69
The Small Business Sector Report 2014
Industry profiles
Going
for
Growth
Photo credit
Ngati Porou
Seafoods
Group & BDO
HR & Training
Services
The team at BDO Gisborne
70
The Small Business Sector Report 2014
industry profiles
Number of firms
NumberNumber
of firmsof firms
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
300
300
0 10,000
0
10,000
20,000
10,000
10,000
20,000
200
200
200
200
150
150
150
150
100
100
100
100
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Zero
Zero (0)
(0)
10,000
0
20,000
10,000
30,000
20,000
40,000
30,000
10,000
0 20,000
10,000 30,000
20,000 40,000
30,000 40,000
40,000
40
40
120
120
80
80
40
40
2000
2000
2000
2000
2005
2005
2005
2005
2010
2010
2010
2010
Finance &
& insurance
insurance
Finance &
& GDP
GDP
insurance GDP
GDP
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Finance
Finance
insurance
Total
Total
industry
contribution
contribution
contribution
contribution
contribution
contribution
contribution
contribution
Finance &
& insurance
insurance
Finance &
& insurance
insurance
Finance
Finance
employeesemployees
employees
per firm
firm per
per firm
firm
employees
per
Value
Value added
added per
per employee
employee ($)
($)
80
80
Index
Index
Index
Index
120
120
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
2005
2000
2000
2005
2010
2005
2005
2010
2010
2010
15%
15%
15%
15%
13%
13%
13%
13%
11%
11%
11%
11%
9%
9%
9%
9%
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
2000
2000
2000
2005
2005
2000
2005
2010
2010
2005
2010
2010
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
160
160
Smoothed
Smoothed turnover
turnover
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
160
160
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
17%
17%
Total industry
industry
Totalemployees
employees
industry employees
employees
Total
Total
industry
per firm
firm per
per firm
firm
per
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
0
0
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
WorkerWorker
turnover
turnover
rate rate
17%
17%
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Zero
Zero (0)
(0)
Zero (0)
(0)
Zero
NumberNumber
of Employees
of Employees
The Act has also introduced new financing mechanisms for small
businesses looking to raise funds. These include peer-to-peer
lending and equity crowd-funding.
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
250
250
2000
2000
Number of employees
Both small and large firms are also affected by the Financial
Markets Conduct Act 2013 which introduced new governance and
accountability frameworks, and disclosure requirements relating to
financial product offerings.
Zero (0)
(0)
Zero
250
250
20,000
20,000
300
300
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Smoothed
Smoothed turnover
turnover
200,000 200,000
200,000
200,000
150,000 150,000
150,000
150,000
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
100,000 100,000
100,000
100,000
50,000
50,000
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
50,000
50,000
2009
2009
2010
2009
2010
2009
2011
2010
2011
2010
2012
2011
2012
2011
2012
2012
71
The Small Business Sector Report 2014
Industry profiles
Going
for
Growth
Fisher Funds
Its strong investment performance drove growth, won the company awards and made it stand apart from
competing fund managers.
Today Fisher Funds employs 50 professionals, managing over $6 billion on behalf of 250,000 clients.
It is a significant fund manager and KiwiSaver provider, known for its candid investor communications.
The company now manages funds across the asset spectrum for clients from around New Zealand.
www.fisherfunds.co.nz
Carmel Fisher
72
The Small Business Sector Report 2014
industry profiles
Number of firms
NumberNumber
of firmsof firms
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
160
160
2,500
0
2,500
0
5,000
2,500
2,500
5,000
7,500
5,000
5,000
7,500
120
120
100
100
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
140
140
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
120
120
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
100
100
2000
2000
7,500
7,500
Number of employees
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
2005
2000
2000
2005
2010
2005
2005
2010
2010
2010
NumberNumber
of Employees
of Employees
WorkerWorker
turnover
turnover
rate rate
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Zero
Zero (0)
(0)
Zero
Zero (0)
(0)
0
0
0
50,000
050,000
50,000
100,000 100,000
100,000
50,000
100,000
130
130
120
120
110
110
100
100
2000
2000
2000
2000
2005
2005
2005
2005
2010
2010
2010
2010
Value
Value added
added per
per employee
employee ($)
($)
110
110
100
100
Index
Index
Index
Index
130
130
120
120
12%
12%
12%
12%
10%
10%
10%
10%
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
150
150
140
140
14%
14%
2000
2000
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
14%
14%
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Total
industry
Health GDP
GDPHealth
Health
contribution
GDP contribution
contribution Total
Health
contribution
GDP
contribution
contribution
contribution
contribution
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Smoothed
Smoothed turnover
turnover
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
140
140
160
160
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
A move to scale in residential care services (i.e. rest homes) has seen
a fairly significant decline in the number of small and small-medium
businesses and an increase in medium and large firms.
Smoothed
Smoothed turnover
turnover
40,000
40,000
40,000
40,000
30,000
30,000
30,000
30,000
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
20,000
20,000 20,000
20,000
Total
industry
Total
employees
industry
employees
Total
industry
Total
employees
industry
employees
2009
2009
2010
Health employees
employees
Health employees
employees
per firm
firm per
per firm
firm
2009
2009
2010
Health
Health
per
per firm
firm per
per firm
firm
per
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
2010
2011
2010
2011
2012
2011
2012
2011
2012
2012
73
The Small Business Sector Report 2014
Industry profiles
Case
Study
Driving Miss
Daisy BOP
industry profiles
Number of firms
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
120
120
110
110
100
100
0
0
2,500
0
2,500
0
5,000
2,500
2,500
5,000
7,500
5,000
5,000
7,500
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Zero
Zero (0)
(0)
30,000
0
30,000
0
30,000
60,000
60,000
30,000
60,000
90,000
90,000
60,000
140
140
130
130
120
120
110
110
100
100
2000
2000
2000
2000
2005
2005
2005
2010
2005
2010
2010
2010
2005
2005
Manufacturing
Manufacturing
GDP
GDP
Manufacturing
Manufacturing
GDP
GDP
contribution
contribution
contribution
contribution
2010
2010
2010
2010
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
12%
12%
12%
12%
10%
10%
10%
10%
90,000
90,000
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
2000
2000
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
100
100
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
2000
2005
2000
2005
14%
14%
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
Index
Index
Index
Index
110
110
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
14%
14%
120
120
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
100
100
16%
16%
Smoothed
Smoothed turnover
turnover
16%
16%
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
130
130
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
WorkerWorker
turnover
turnover
rate rate
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
140
140
Zero (0)
(0)
Zero
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
110
110
2000
2000
NumberNumber
of Employees
of Employees
0
0
Zero (0)
(0)
Zero
90
90
7,500
7,500
Number of employees
Zero
Zero (0)
(0)
120
120
90
90
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
Smoothed
Smoothed turnover
turnover
Manufacturing
120,000
120,000
120,000
120,000
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
100,000 100,000
100,000
100,000
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Total
Total
industry
contribution
contribution
contribution
contribution
Manufacturing
Manufacturing
employeesemployees
employees
Total industry
industry
Totalemployees
employees
industry employees
employees
Manufacturing
Manufacturing
employees
Total
Total
industry
per firm
firm per
per firm
firm
per firm
firm per
per firm
firm
per
per
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
80,000
80,000
80,000
80,000
60,000
60,000
60,000
60,000
2009
2009
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
2010
2009
2009
2010
2011
2010
2010
2011
2012
2011
2011
2012
2012
2012
75
The Small Business Sector Report 2014
Industry profiles
Auckland
Canterbury
Waikato
Wellington
Bay of Plenty
Manawatu-Wanganui
Otago
Hawke's Bay
Northland
Taranaki
Southland
Marlborough
A strong dairy industry has provided a firm base for the Waikato
regions manufacturing industry.The region is also home to
niche manufacturing industries in aviation, plastics, electronics
and automation.
Tasman
Nelson
West Coast
Gisborne
0
5.0%
4.5%
4.0%
3.5%
3.0%
76
The Small Business Sector Report 2014
industry profiles
Going
for
Growth
Pakworld
SMEs can create niche manufacturing products
for larger firms
Pakworld has developed its own niche supplying larger local and international
firms by tailoring its environmentally-friendly packaging service to the needs
of each client.
The Port Hills, Christchurch, company has been manufacturing high-quality
packaging for the past 30 years. The family-owned business employs 21 staff.
It supplies packaging for firms such as Burger Fuel, Kathmandu, Patience &
Nicholson, and Prolife Foods. Its customers include some of New Zealands
most recognised brands and Pakworlds export client list includes companies
in Australia, the Middle East and China.
Pakworld values its relationships with customers and has built a reputation for
fast, efficient and environmentally-friendly service. It won work in competition
with a Chinese company by offering a more customised solution for clients.
77
The Small Business Sector Report 2014
Industry profiles
Number of firms
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
300
300
200
200
200
200
100
0
100
0
200
100
200
100
300
200
300
200
400
300
400
300
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
2,000
1,000
2,000
1,000
3,000
2,000
3,000
2,000
4,000
3,000
4,000
3,000
140
140
120
120
100
100
80
80
2000
2000
2000
2000
2005
2010
2005
2010
2010
2010
20%
20%
20%
20%
16%
16%
16%
16%
12%
12%
12%
12%
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
4,000
4,000
2005
2005
2005
2005
2010
2010
2010
2010
2000
2000
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
Mining
Mining
Mining &
& petroleum
petroleum
Mining &
& petroleum
petroleum
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Total
Total
industry
extraction extraction
extraction
GDP
GDP
extraction
GDP
GDP
contribution
contribution
contribution
contribution
contribution
contribution
contribution
contribution
Mining
Mining
Mining &
& petroleum
petroleum
Mining &
& petroleum
petroleum
Total industry
industry
Totalemployees
employees
industry employees
employees
Total
Total
industry
extraction extraction
extraction
employeesemployees
employees
per
per
extraction
employees
per
per
per firm
firm per
per firm
firm
per
firm
firm
firm
firm
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
1,000
0
1,000
0
Value
Value added
added per
per employee
employee ($)
($)
80
80
2000
2005
2000
2005
Zero
Zero (0)
(0)
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
Index
Index
Index
Index
100
100
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
100
100
WorkerWorker
turnover
turnover
rate rate
120
120
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Mining &
& Mining
&
Mining
Mining &
utilities utilities
utilities
utilities
Smoothed
Smoothed turnover
turnover
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
0
0
Zero (0)
(0)
Zero
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
140
140
Zero (0)
(0)
Zero
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
2000
2000
NumberNumber
of Employees
of Employees
Zero
Zero (0)
(0)
78
100
100
400
400
Number of employees
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
300
300
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
0
0
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
This industry covers the exploration and mining of coal, metals, oil
and gas. Mining and petroleum has the lowest total number of firms.
This is due to the capital intensive nature of the industry and hence
its high barriers to entry.
Smoothed
Smoothed turnover
turnover
1,500,000 1,500,000
1,500,000
1,500,000
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
1,000,0001,000,000
1,000,000
1,000,000
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
500,000 500,000
500,000
500,000
2009
2009
2010
2009
2010
2009
2011
2010
2011
2010
2012
2011
2012
2011
2012
2012
industry profiles
Regional concentration
of business
units in mining
and petroleum
extraction
Regional
concentration
of business
units in
mining &
petroleum extraction
Taranaki
Auckland
West Coast
Waikato
Canterbury
Wellington
Otago
Northland
Manawatu-Wanganui
Bay of Plenty
Southland
The mining and petroleum industry is one of just two industries for
which Auckland does not provide the highest number of SMEs. The
Taranaki region is the centre of New Zealands petroleum and gas
activity, while the West Coast focuses on mining, particularly coal.
Tasman
Hawke's Bay
Marlborough
Gisborne
Nelson
0.00
0.05
0.10
0.15
79
The Small Business Sector Report 2014
Industry profiles
Going
for
Growth
ECL
80
The Small Business Sector Report 2014
industry profiles
Number of firms
NumberNumber
of firmsof firms
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
100
100
1,000
0
1,000
0
2,000
1,000
1,000
2,000
3,000
2,000
2,000
3,000
3,000
3,000
Zero
Zero (0)
(0)
Smoothed
Smoothed turnover
turnover
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
21%
21%
Index
Index
Index
Index
40
40
2000
2000
2000
2000
2005
2005
2010
2010
2005
2005
2010
2010
2010
2010
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
12%
12%
12%
12%
2000
2000
5,000
0
10,000
5,000
15,000
10,000
20,000
15,000
25,000
20,000
5,000
20,000
0 10,000
5,00015,000
10,000
15,00025,000
20,000 25,000
25,000
160
160
40
40
2005
2010
2005
2010
18%
18%
15%
15%
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
2000
2005
2005
2000
2005
2010
2010
2005
2010
2010
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
80
80
2000
2005
2000
2005
15%
15%
80
80
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
logistics, logistics,
logistics,
logistics,
& media
media &
& media
media
&
21%
21%
18%
18%
Trends Trends
in valueinadd
value
peradd
employee
per employee
150,000 150,000
150,000
150,000
Value
Value added
added per
per employee
employee ($)
($)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
120
120
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
100
100
WorkerWorker
turnover
turnover
rate rate
Smoothed
Smoothed turnover
turnover
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
120
120
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
160
160
Zero (0)
(0)
Zero
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
150
150
2000
2000
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Zero
Zero (0)
(0)
Zero (0)
(0)
Zero
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
NumberNumber
of Employees
of Employees
0
0
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results. Flow of sales and purchases in the media and
telecommunication industry fluctuates from year to year and may on occasion lead to negative value add figures,
as seen in 2011 for small-medium business in this industry group.
150
150
Number of employees
200
200
200
200
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
GrowthGrowth
trends trends
for different
for different
size firms
size firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
The media and telecommunications industry covers many subindustries including motion picture and video activities (also known
as the screen industry), publishing, television and radio broadcasting,
and internet services.
Value
Value added
added per
per employee
employee ($)
($)
Media &
telecommunications
100,000
100,000 100,000
100,000
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
50,000
50,000
50,000
50,000
0
0
0
0
Media &
& telecommunications
telecommunications
Media &
& telecommunications
telecommunications
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Media
Media
Total
Total
industry
GDP contribution
contribution
GDP contribution
contribution
contribution
contribution
GDP
GDP
contribution
contribution
Media &
& telecommunications
telecommunications
Media &
& telecommunications
telecommunications
Total industry
industry
Totalemployees
employees
industry employees
employees
Media
Media
Total
Total
industry
employeesemployees
employees
per firm
firm per
per firm
firm
per firm
firm per
per firm
firm
employees
per
per
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
2009
2009
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
2009
2010
2009
2010
2010
2011
2010
2011
2012
2011
2012
2011
2012
2012
81
The Small Business Sector Report 2014
Industry profiles
Regional concentration
of business
units in media
and telecommunications
Regional
concentration
of business
units in media &
telecommunications
Auckland
Wellington
Canterbury
Waikato
Otago
Bay of Plenty
Northland
Manawatu-Wanganui
Hawke's Bay
Taranaki
Southland
Nelson
Tasman
Marlborough
West Coast
Gisborne
0
82
The Small Business Sector Report 2014
industry profiles
Case
Study
Photo credit
Paul Davis
It will use the funds to run a combination of jointly-owned
collaborative projects, while also pursuing its own whollyowned projects. It understands its partners will also be
forging collaborations with other screen businesses.
Richard says this will stimulate wider growth and activity
in the industry. And this ultimately benefits everyone.
www.nzfilm.co.nz/funding/business-development/businessdevelopment-scheme
www.libertinepictures.com
83
The Small Business Sector Report 2014
Industry profiles
Number of firms
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
180
180
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
160
160
140
140
120
120
100
100
180
180
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
4 Other services
2,500
0
2,500
0
5,000
2,500
5,000
2,500
7,500
5,000
5,000
7,500
10,000
7,500
10,000
7,500
10,000
10,000
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
14%
14%
13%
13%
13%
13%
12%
12%
12%
12%
11%
11%
11%
11%
Zero
Zero (0)
(0)
84
The Small Business Sector Report 2014
140
140
Index
Index
Index
Index
130
130
120
120
110
110
100
100
2000
2000
2000
2000
2005
2005
2010
2010
2005
2005
2010
2010
2010
2010
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
2000
2005
2005
2000
2005
2010
2010
2005
2010
2010
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
Value
Value added
added per
per employee
employee ($)
($)
100
100
2005
2010
2005
2010
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
2000
2000
5,000
0
10,000
5,000
15,000
10,000
20,000
15,000
5,000
0 10,000
5,000 15,000
10,00020,000
15,000 20,000
20,000
110
110
2000
2005
2000
2005
14%
14%
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Arts, recreation
recreation
Arts, recreation
recreation
& other
other &
& other
other Total
Total
industry
Arts,
Arts,
&
contribution
contribution
services GDP
GDP
services
contribution
GDP contribution
contribution
contribution
contribution
services
services
contribution
GDP
Trends Trends
in valueinadd
value
peradd
employee
per employee
50,000
50,000
50,000
50,000
48,000
48,000
48,000
48,000
46,000
46,000
46,000
46,000
44,000
44,000
44,000
44,000
Arts,
Arts,
&
Arts, recreation
recreation
Arts, recreation
recreation
& other
other &
& other
other Total
industry
Totalemployees
employees
industry employees
employees
industry
Total
industry
services employees
employees
services employees
employees
per
per Total
services
services
per
per
per firm
firm per
per firm
firm
per
firm
firm
firm
firm
Value
Value added
added per
per employee
employee ($)
($)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
120
120
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
100
100
15%
15%
Smoothed
Smoothed turnover
turnover
Smoothed
Smoothed turnover
turnover
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
130
130
Zero (0)
(0)
Zero
WorkerWorker
turnover
turnover
rate rate
15%
15%
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
140
140
Zero (0)
(0)
Zero
120
120
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: These GDP data include art and recreational services as well as other services, as more detailed data
were unavailable. Chain-volume series expressed in 1995/96 prices. All numbers from business demography
statistics are provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
140
140
2000
2000
NumberNumber
of Employees
of Employees
0
0
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Number of employees
Zero
Zero (0)
(0)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
160
160
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
2009
2009
2009
2010
2009
2010
2010
2011
2010
2011
2012
2011
2012
2011
2012
2012
industry profiles
Case
Study
Photo credit
Bizbuzz
Bizbuzz members are mostly one- or two-person microbusinesses. Many outsource management functions like
finance and technology to other small businesses. This
helps other small businesses grow.
Bizbuzz is one of many industry and professional
associations helping small businesses grow by providing
networking opportunities, professional development and
advocacy support.
www.bizbuzz.co.nz.
85
The Small Business Sector Report 2014
Industry profiles
Number of firms
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
150
150
130
130
110
110
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
4 Professional services
150
150
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
130
130
Zero (0)
(0)
Zero
110
110
Zero (0)
(0)
Zero
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
10,000
0
10,000
0
20,000
10,000
10,000
20,000
30,000
20,000
20,000
30,000
30,000
30,000
2000
2005
2000
2005
2000
2000
Number of employees
2005
2010
2005
2010
2010
2010
NumberNumber
of Employees
of Employees
WorkerWorker
turnover
turnover
rate rate
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Zero
Zero (0)
(0)
Zero
Zero (0)
(0)
0
0
10,000
0
20,000
10,000
30,000
20,000
40,000
30,000
10,000
0 20,000
10,00030,000
20,00040,000
30,000 40,000
40,000
86
The Small Business Sector Report 2014
120
120
100
100
140
140
120
120
100
100
2000
2000
2000
2000
2005
2005
2005
2005
2010
2010
2010
2010
Value
Value added
added per
per employee
employee ($)
($)
140
140
160
160
14%
14%
14%
14%
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
12%
12%
12%
12%
10%
10%
10%
10%
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
Index
Index
Index
Index
160
160
16%
16%
2000
2000
16%
16%
Trends Trends
in valueinadd
value
peradd
employee
per employee
100,000 100,000
100,000
100,000
Value
Value added
added per
per employee
employee ($)
($)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Smoothed
Smoothed turnover
turnover
Smoothed
Smoothed turnover
turnover
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
95,000
95,000
95,000
95,000
90,000
90,000
90,000
90,000
Professional
Professional
&
&
Professional
Professional
&
&
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Total
Total
industry
85,000 85,000
85,000
administrative
administrative
services services
services
85,000
administrative
administrative
services
contribution
contribution
contribution
contribution
GDP
contribution
GDP
contribution
GDP contribution
GDP contribution
Professional
Professional
&
&
Professional
Professional
&
&
Total industry
industry
Totalemployees
employees
industry employees
employees
Total
Total
industry
2009
2010
2009
administrative
administrative
services services
services
2009
2009
2010
administrative
administrative
services
per firm per firm
employees
per
employeesemployees
employees
per firm
firm per
per firm
firm per firm per firm
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
2011
2010
2010
2011
2012
2011
2011
2012
2012
2012
industry profiles
Case
Study
Westpac
Business and
Community
Hub
Three years on, the need for the Hub has diminished,
but Westpac continues to offer a wide range of banking
services for small business as the rebuild gathers pace.
www.westpacbusinesshub.co.nz
87
The Small Business Sector Report 2014
Industry profiles
Number of firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
There are few firms, and very few small private businesses, in this
sector. The public administration, defence and public safety sector
has the most accentuated concentration of employment in large
firms of all New Zealands industries.
Zero (0)
(0)
Zero
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
Zero (0)
(0)
Zero
140
140
120
120
100
100
0
0
0 200
0
200
200 400
200
400
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Zero
Zero (0)
(0)
30,000
0
30,000
0
60,000
30,000
60,000
30,000
90,000
60,000
120,000
90,000
90,000
60,000 120,000
90,000
17.5%
17.5%
17.5%
17.5%
15.0%
15.0%
15.0%
15.0%
12.5%
12.5%
12.5%
12.5%
10.0%
10.0%
10.0%
10.0%
88
The Small Business Sector Report 2014
150
150
130
130
110
110
2005
2005
2005
2005
2010
2010
2010
2010
Value
Value added
added per
per employee
employee ($)
($)
Index
Index
Index
Index
170
170
2000
2000
2010
2010
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
2000
2005
2005
2000
2005
2010
2010
2005
2010
2010
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
2000
2000
2010
2005
2005
2010
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
2000
2000
120,000
120,000
110
110
2005
2000
2000
2005
20.0%
20.0%
Smoothed
Smoothed turnover
turnover
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
130
130
Zero (0)
(0)
Zero
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
20.0%
20.0%
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
150
150
Zero (0)
(0)
Zero
100
100
WorkerWorker
turnover
turnover
rate rate
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
170
170
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
120
120
NumberNumber
of Employees
of Employees
0
0
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
2000
2000
400
400
Number of employees
Zero
Zero (0)
(0)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
140
140
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
Smoothed
Smoothed turnover
turnover
4 Public administration,
defence and public
safety
100,000 100,000
100,000
100,000
80,000
80,000
60,000
60,000
Government
Government
administration,
administration,
Government
Government
administration,
administration,
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Total
industry
defence, public
public
defence,
safety
public
GDPsafety
safety GDP
GDP Total
defence,
defence,
safety
public
GDP
contribution
contribution
contribution
contribution
contribution
contribution
contribution
contribution
Government
Government
administration,
administration,
Government
Government
administration,
administration,
Total industry
industry
Totalemployees
employees
industry employees
employees
Total
Total
industry
defence, public
public
defence,
safety
public safety
safety
defence,
defence,
safety
public
per firm
firm per
per firm
firm
per
employees
employees
per
firm
per
employeesemployees
per firm per firm
firm
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
80,000
80,000
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
60,000
60,000
2009
2009
2010
2009
2010
2009
2011
2010
2011
2010
2012
2011
2012
2011
2012
2012
industry profiles
Number of firms
NumberNumber
of firmsof firms
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
0
0
140
140
120
120
100
100
25,000
0
25,000
0
50,000
25,000
50,000
25,000
75,000
50,000
50,000
75,000
75,000
75,000
22.5%
22.5%
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Smoothed
Smoothed turnover
turnover
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
20.0%
20.0%
Zero
Zero (0)
(0)
0
0
2,500
0
2,500
0
2,500
5,000
5,000
2,500
5,000
7,500
7,500
5,000
80
80
140
140
120
120
100
100
80
80
2000
2000
2000
2000
2005
2005
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
2005
2005
2010
2010
2010
2010
WorkerWorker
turnover
turnover
rate rate
22.5%
22.5%
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
20.0%
20.0%
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
17.5%
17.5%
15.0%
15.0%
15.0%
15.0%
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
120
120
100
100
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
100
100
2000
2000
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
Index
Index
Index
Index
140
140
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
120
120
17.5%
17.5%
7,500
7,500
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Zero
Zero (0)
(0)
Zero (0)
(0)
Zero
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
140
140
2000
2000
NumberNumber
of Employees
of Employees
The regulatory reforms from the Real Estate Agents Act 2008 have
affected the real estate services sub-sector. The changes included
the introduction of annual operational levies, which led to a decrease
in the number of registered agents as many were inactive.
Furthermore, in response to the regulatory reforms some smaller
firms have consolidated their businesses into large operations.
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Number of employees
Zero (0)
(0)
Zero
160
160
Trends Trends
in valueinadd
value
peradd
employee
per employee
300,000
300,000 300,000
300,000
Value
Value added
added per
per employee
employee ($)
($)
Zero (0)
(0)
Zero
160
160
180
180
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Most firms are in the property operators and real estate services
sub-sectors. However, the industry also includes motor vehicle, heavy
machinery equipment hiring, video stores and scaffolding businesses.
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
180
180
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Smoothed
Smoothed turnover
turnover
250,000 250,000
250,000
250,000
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
200,000
200,000 200,000
200,000
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Rental, hiring
hiring
Rental,
& property
property
hiring &
& property
propertyTotal
Total
industry
Rental,
Rental,
&
hiring
contribution
contribution
services GDP
GDP
services
contribution
GDP contribution
contribution
contribution
contribution
services
services
contribution
GDP
Rental,
Rental,
&
hiring
Rental, hiring
hiring
Rental,
& property
property
hiring &
& property
propertyTotal
industry
Totalemployees
employees
industry employees
employees
industry
Total
industry
services employees
employees
services employees
employees
per
per Total
services
services
per
per
per firm
firm per
per firm
firm
per
firm
firm
firm
firm
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
150,000 150,000
150,000
150,000
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
100,000
100,000 100,000
100,000
2009
2009
2010
2009
2010
2009
2011
2010
2011
2010
2012
2011
2012
2011
2012
2012
89
The Small Business Sector Report 2014
Industry profiles
Regional concentration
of business
units inof
rental,
hiringunits
and property
services
Regional
concentration
business
in rental,
hiring &
property services
Auckland
Canterbury
Waikato
Wellington
Bay of Plenty
Otago
Manawatu-Wanganui
Hawke's Bay
Northland
Taranaki
Southland
Marlborough
Nelson
Tasman
Gisborne
West Coast
0
10
20
30
90
The Small Business Sector Report 2014
industry profiles
Case
Study
Photo credit
www.toracoastalwalk.co.nz
91
The Small Business Sector Report 2014
Industry profiles
Number of firms
NumberNumber
of firmsof firms
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
160
160
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
2,500
0
2,500
0
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
50,000
25,000
75,000
50,000
100,000
75,000
50,000
25,000 75,000
50,000 100,000
75,000 100,000
100,000
120
120
110
110
100
100
2005
2005
2005
2005
2010
2010
2010
2010
Value
Value added
added per
per employee
employee ($)
($)
Index
Index
Index
Index
140
140
130
130
2000
2000
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
18%
18%
16%
16%
16%
16%
14%
14%
14%
14%
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
2000
2000
2000
2005
2000
2005
2005
2010
2005
2010
2010
2010
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
2000
2000
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
100
100
18%
18%
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
25,000
0
25,000
0
100
100
Zero
Zero (0)
(0)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero
Zero (0)
(0)
0
0
120
120
110
110
Zero
Zero (0)
(0)
120
120
WorkerWorker
turnover
turnover
rate rate
Smoothed
Smoothed turnover
turnover
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
140
140
130
130
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Zero
Zero (0)
(0)
140
140
2000
2000
NumberNumber
of Employees
of Employees
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
100
100
5,000
2,500 7,500
5,00010,000
7,50012,500
10,000 12,500
12,500
5,000
2,500
7,500
5,000
10,000
7,500
12,500
10,000
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
92
120
120
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Number of employees
Retailers must also contend with large shopping malls and rising
rental rates in central urban areas.
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: These GDP data include accommodation and restaurants as well as retail trade, as more detailed data
were unavailable. Chain-volume series expressed in 1995/96 prices. All numbers from business demography
statistics are provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
140
140
160
160
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Retail trade is the largest employer of all the industries. This large,
diverse industry ranges from pharmacies, electronic goods, furniture,
clothing and car sales businesses to supermarket grocery and
hardware stores.
Smoothed
Smoothed turnover
turnover
4 Retail
45,000
45,000
42,000
42,000
45,000
45,000
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
42,000
42,000
39,000
39,000 39,000
39,000
Retail
Retail
&
Retail trade
trade
Retail
& trade
trade &
&
Total
industry
Total
GDP
industry
GDP
Total
industry
Total
GDP
industry
GDP
accommodation
accommodation
GDP
GDP
accommodation
accommodation
GDP
GDP
contribution
contribution
contribution
contribution
contribution
contribution
contribution
contribution
Retail
Retail
&
Retail trade
trade
Retail
& trade
trade &
&
Total
industry
Totalemployees
employees
industry employees
employees
Total
industry
Total
industry
2009
2009
2010
accommodation
accommodation
employeesemployees
employees
2009
2009
2010
accommodation
accommodation
employees
per firm
firm per
per firm
firm
per
per
per firm
firm per
per firm
firm
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
2010
2011
2010
2011
2012
2011
2012
2011
2012
2012
industry profiles
Auckland
Canterbury
Wellington
Waikato
Bay of Plenty
Otago
Manawatu-Wanganui
Northland
Hawke's Bay
Taranaki
Southland
Nelson
Tasman
Marlborough
Gisborne
West Coast
0.0
2.5
5.0
7.5
10.0
6%
5%
93
The Small Business Sector Report 2014
Industry profiles
Case
Study
Chilanga
Banda
Photo credit
Chilanga Banda
94
The Small Business Sector Report 2014
industry profiles
Number of firms
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Small
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
Zero (0)
(0)
Zero
0
0
140
140
130
130
120
120
110
110
100
100
5,000
2,500
5,000
2,500
7,500
5,000
7,500
5,000
10,000
7,500
10,000
7,500
Number of employees
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Small
Micro
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Zero
Zero (0)
(0)
21%
21%
18%
18%
15%
15%
12%
12%
100
100
90
90
2000
2000
2005
2005
Micro
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
2010
2005
2005
2010
2010
2010
2005
2005
2010
2010
2010
2010
logistics,
logistics,
& media
media
&
Micro
Micro (1-5)
(1-5) Micro
Micro (1-5)
(1-5)
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
Small
18%
18%
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
15%
15%
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
12%
12%
2000
2005
2005
2000
2005
2010
2010
2005
2010
2010
Transport &
&Transport
Transport
logistics GDP
GDP
& logistics
logistics GDP
GDP
Total industry
industry
Total
GDP
industry GDP
GDP
Transport
logistics
&
Total
Total
GDP
industry
contributioncontribution
contribution
contributioncontribution
contribution
contribution
contribution
Trends in
Trends
value in
add
value
per add
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
120
120
110
110
Value
Value added
added per
per employee
employee ($)
($)
140
140
130
130
2000
2000
Zero (0)
(0)
Zero
Trends in
Trends
contribution
in contribution
to GDP and
to GDP
firmand
sizefirm size
Index
Index
Index
Index
100
100
90
90
Zero (0)
(0)
Zero
2005
2000
2000
2005
2000
2000
10,0000
20,000
10,000
30,000
20,000
40,000
30,000
50,000
40,000
10,000
30,000
40,000
50,000
0 20,000
10,000
20,000
30,000
40,000 50,000
50,000
120
120
110
110
100
100
logistics,
logistics,
& media
media
&
21%
21%
Smoothed
Smoothed turnover
turnover
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
140
140
130
130
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
Worker turnover
Worker turnover
rate
rate
Smoothed
Smoothed turnover
turnover
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
110
110
Large
Large (100+)
(100+)Large
Large (100+)
(100+)
0
0
Small
Small (6-19)
(6-19)Small
Small (6-19)
(6-19)
90
90
NumberNumber
of Employees
of Employees
Zero
Zero (0)
(0)
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
120
120
2000
2000
10,000
10,000
Large (100+)
(100+)Large
Large (100+)
(100+)
Large
130
130
90
90
2,500
0
2,500
0
140
140
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Growth Growth
trends for
trends
different
for different
size firms
size firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Transport
100,000
100,000
90,000
90,000
80,000
80,000
Transport &
&Transport
Transport
logistics &
& logistics
logistics Total
Total industry
industry
Total
employees
industry employees
employees
Transport
logistics
Total
employees
industry
employees per
per
employees
firm
per firm
firm
per
per firm
firm
employees
employees
firm
per
per firm
firm
per
100,000
100,000
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
Small-medium
Small-medium
(20-49)
(20-49)
Small-medium
Small-medium
(20-49)
(20-49)
90,000
90,000
Micro-smallMicro-small
Micro-small
(1-19)
(1-19)
Micro-small
(1-19)
(1-19)
80,000
80,000
2009
2009
2010
2009
2009
2010
2011
2010
2010
2011
2012
2011
2011
2012
2012
2012
95
The Small Business Sector Report 2014
Industry profiles
Case
Study
Findatruckload
Photo credit
www.findatruckload.co.nz
96
The Small Business Sector Report 2014
industry profiles
Number of firms
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
Zero (0)
(0)
Zero
175
175
150
150
125
125
100
100
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Utilities
0 200
0
200
200400
200
400
400600
400
600
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Smoothed
Smoothed turnover
turnover
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
2010
2010
16%
16%
16%
16%
12%
12%
12%
12%
Medium
Medium
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
6,000
3,000
6,000
3,000
6,000
9,000
9,000
6,000
9,000
9,000
2000
2000
110
110
100
100
2005
2005
2005
2005
2010
2010
2010
2010
2005
2010
2005
2010
2010
2010
120
120
2000
2005
2000
2005
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
3,000
0
3,000
0
130
130
2000
2000
2010
2005
2005
2010
Zero
Zero (0)
(0)
140
140
2000
2000
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
2005
2000
2000
2005
20%
20%
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
Index
Index
Index
Index
110
110
100
100
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
100
100
20%
20%
120
120
125
125
WorkerWorker
turnover
turnover
rate rate
Smoothed
Smoothed turnover
turnover
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
130
130
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Mining &
& Mining
&
Mining
Mining &
utilities utilities
utilities
utilities
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
0
0
Zero (0)
(0)
Zero
NumberNumber
of Employees
of Employees
140
140
Zero (0)
(0)
Zero
150
150
2000
2000
600
600
Number of employees
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
175
175
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
0
0
Zero
Zero (0)
(0)
400,000 400,000
400,000
400,000
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
300,000
300,000 300,000
300,000
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
200,000
200,000 200,000
200,000
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Total
Total
industry
Utilities GDP
GDP
Utilities
contribution
GDP contribution
contribution
Utilities
Utilities
contribution
GDP
contribution
contribution
contribution
contribution
Utilities employees
employees
Utilities employees
employees
per
per Total
Total industry
industry
Totalemployees
employees
industry employees
employees
Utilities
Utilities
per
per
Total
industry
firm
firm
per
per firm
firm
firm
firm
per firm
firm per
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
100,000 100,000
100,000
100,000
2009
2009
2010
2009
2009
2010
2011
2010
2010
2011
2012
2011
2011
2012
2012
2012
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The Small Business Sector Report 2014
Industry profiles
Case
Study
Photo credit
Outpost
Central
98
The Small Business Sector Report 2014
industry profiles
Number of firms
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
Zero (0)
(0)
Zero
GrowthGrowth
trends for
trends
different
for different
size firms
size firms
Zero (0)
(0)
Zero
0
0
2,500
0
2,500
0
5,000
2,500
2,500
5,000
7,500
5,000
5,000
7,500
130
130
120
120
110
110
100
100
90
90
Number of employees
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Zero
Zero (0)
(0)
10,000
0
10,000
0
10,000
20,000
20,000
10,000
20,000
30,000
30,000
20,000
130
130
120
120
110
110
100
100
2000
2000
Zero
Zero (0)
(0)
2000
2005
2000
2005
2005
2010
2005
2010
Zero
Zero (0)
(0)
2010
2010
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
13%
13%
13%
13%
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
12%
12%
12%
12%
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
Micro
11%
11%
11%
11%
Small
Small
Small (6-19)
(6-19)
Small (6-19)
(6-19)
10%
10%
10%
10%
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
2000
2000
30,000
30,000
2005
2005
2005
2005
Wholesale Wholesale
Wholesale
trade GDP
GDP trade
trade GDP
GDP
Wholesale
trade
contribution
contribution
contribution
contribution
2010
2010
2010
2010
2000
2005
2005
2000
2005
2010
2010
2005
2010
2010
140
140
2000
2000
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
90
90
14%
14%
Trends Trends
in contribution
in contribution
to GDP to
and
GDP
firm
and
size
firm size
Index
Index
Index
Index
110
110
100
100
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
100
100
14%
14%
120
120
Micro
Micro (1-5)
(1-5)Micro
Micro (1-5)
(1-5)
110
110
15%
15%
Smoothed
Smoothed turnover
turnover
Small (6-19)
(6-19)
Small (6-19)
(6-19)
Small
Small
130
130
Large (100+)
(100+)
Large (100+)
(100+)
Large
Large
15%
15%
Trends Trends
in valueinadd
value
peradd
employee
per employee
Value
Value added
added per
per employee
employee ($)
($)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
Small-medium
Small-medium
(20-49)
140
140
120
120
WorkerWorker
turnover
turnover
rate rate
Smoothed
Smoothed turnover
turnover
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
0
0
Medium (50-99)
(50-99)
Medium (50-99)
(50-99)
Medium
Medium
NumberNumber
of Employees
of Employees
Zero
Zero (0)
(0)
130
130
2000
2000
7,500
7,500
Large
Large
Large (100+)
(100+)
Large (100+)
(100+)
Number of firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Growth trends for different size firms
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Number of employees
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
Worker turnover rate
Source: Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.Stat
Notes: Data for quarters 3 and 4 of 2012 are provisional. These data exclude self-employed people.
Trends in contribution to GDP and firm size
Source: System of National Accounts, GDP(P), Chain volume, Actual, ANZSIC06 high-level industry groups
(Annual-Mar), Statistics New Zealand. Access via Infoshare. Business demography statistics, Statistics
New Zealand, 2013. Access via NZ.Stat
Notes: Chain-volume series expressed in 1995/96 prices. All numbers from business demography statistics are
provisional. For full notes, consult Statistics New Zealand
Trends in value add per employee
Source: Annual Enterprise Survey, custom data supplied by Statistics NZ
Notes: Data for 2011 and 2012 are provisional. All figures exclude GST. Data exclude residential property
operators, religious services, private households employing staff, and superannuation funds. This is an estimate
of value added determined by Annual Enterprise survey results.
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
NumberNumber
of firmsof firms
Number
Number of
of firms
firms
(indexed;
(indexed; 2000
2000 == 100)
100)
Wholesale trade
110,000
110,000
110,000
110,000
Small-medium
Small-medium
(20-49)
Small-medium
Small-medium
(20-49) (20-49)
(20-49)
100,000 100,000
100,000
100,000
90,000
90,000
Total industry
industry
TotalGDP
GDP
industry GDP
GDP
Total
Total
industry
contribution
contribution
contribution
contribution
Wholesale Wholesale
Wholesale
trade employees
employees
trade employees
employees
Total industry
industry
Totalemployees
employees
industry employees
employees
Wholesale
trade
trade
Total
Total
industry
per firm
firm per
per firm
firm
per firm
firm per
per firm
firm
per
per
Medium-large
Medium-large
(50+)
(50+)
Medium-large
Medium-large
(50+)
(50+)
Micro-small
Micro-small
(1-19)
(1-19)
Micro-small
Micro-small
(1-19)
(1-19)
90,000
90,000
2009
2009
2010
2009
2009
2010
2011
2010
2010
2011
2012
2011
2011
2012
2012
2012
99
The Small Business Sector Report 2014
Industry profiles
Auckland
Canterbury
Wellington
Waikato
Bay of Plenty
Manawatu-Wanganui
Otago
Hawke's Bay
Northland
Taranaki
Southland
Nelson
Marlborough
Tasman
Gisborne
West Coast
0.0
2.5
5.0
7.5
4%
3%
Source: Business demography statistics, Statistics New Zealand, 2013. Access via NZ.Stat
Notes: All numbers are provisional. For full notes, consult Statistics New Zealand.
100
The Small Business Sector Report 2014
industry profiles
Case
Study
Central Flower
Wholesalers
Small businesses can provide strong customer service
through wholesaling
A strong focus on a few wholesale customers is helping Central Flower Wholesalers to grow.
Wellington-based husband and wife Dave and Cushla Cannings knew little about wholesaling
or working together when they entered the flower distribution business 18 years ago. Cushla
had experience as a manager and florist, and Dave knew about business and sales through
his seven years as a car salesperson. They learnt by trial and error, asking questions of people
in the industry.
They liked the wholesale model of bulk-selling to a small group of customers.
We have a very strong loyal client base and we make sure we look after them exceptionally
well, says Dave.
We keep things simple. The industry is quite antiquated as far as the internet goes. Most
of our customers dont use the net to talk to us. Our customers at the supermarkets, for
example, dont have access to the internet and they dont need to, he says.
Dave says establishing a professional structure between himself and Cushla was the key
to a good working partnership.
Photo credit
We sat down many years ago and discussed the business. We both have different roles with
not a lot of cross-over but we work as a good team, he says. Its satisfying and personal.
You retain the profits in life but you need to have a good marriage to make it work.
www.centralflowers.co.nz
Flower wholesaler
101
The Small Business Sector Report 2014
102
The Small Business Sector Report 2014
Description of
Data Sources
and Data
References
103
The Small Business Sector Report 2014
The Annual Enterprise Survey (AES) is New Zealands most comprehensive source of financial statistics.
Survey data from around 16,000 businesses is combined with data from Inland Revenue, Treasury, the
New Zealand Companies Office, the Charities Commission and Statistics New Zealand to produce annual
information on financial performance and financial position for industry and sector groups operating
within New Zealand.
The Linked Employer-Employee Data (LEED) provides information on New Zealanders interaction with the
labour market and their sources of income. The longitudinal nature of the data allows analysis of income
transitions, job tenure, multiple job holding, and self-employment. LEED uses existing administrative data
drawn from the taxation system, together with business data from Statistics NZs Business Frame.
The Annual Enterprise Survey excludes residential property operators, foreign government representation,
religious services, and private households employing staff. Superannuation funds are excluded from the
tables released by Statistics New Zealand, including those used in this report.
The LEED annual statistics cover all individuals who either receive income from which tax is deducted at
source, or from self-employment. By contrast, the LEED quarterly statistics do not include self-employed
people. A full description of the scope of the Annual and Quarterly LEED statistics can be found on
Statistics New Zealands website (http://www.stats.govt.nz/).
Quarterly Linked Employer-Employee Data (LEED), Statistics New Zealand, 2014. Access via NZ.stat (http://nzdotstat.stats.govt.nz/wbos/Index.aspx)
Annual Linked Employer-Employee Data (LEED), custom data supplied by Statistics New Zealand.
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The Small Business Sector Report 2014
Available from
Publication
Available from
www.mbie.govt.nz
www.stats.govt.nz
www.mbie.govt.nz
www.foodandbeverage.govt.nz
The project pulls together all the available information on the food
and beverage industry into one place, in a form which is familiar and
useful to business. Over 20 reports are available on every aspect
of New Zealands food industry, including information on export
market and investment opportunities. New and updated reports
are released annually.
105
The Small Business Sector Report 2014
Available from
Building innovation
www.mbie.govt.nz
The building innovation work stream of the Business Growth Agenda aims
to grow New Zealands economy by encouraging and enabling investment
in research and development, and lifting the value of public investments in
science and research.
Export markets
www.mbie.govt.nz
www.mbie.govt.nz
The Business Growth Agenda Progress Report 2013 shows the significant
progress the Government has made across each of the six areas that are
critical to business success and growth: Export Markets, Capital Markets,
Innovation, Skilled and Safe Workplaces, Natural Resources and Infrastructure.
106
The Small Business Sector Report 2014
www.mbie.govt.nz
www.mbie.govt.nz
www.mbie.govt.nz
The building capital markets work stream of the Business Growth Agenda
aims to ensure New Zealand has high performing capital markets that
support investment, growth and jobs.
XERO
The skilled and safe workplaces work stream of the Business Growth Agenda
aims to improve the safety of the workforce and build sustained economic
growth through a skilled and responsive labour market.
The Ministry of Business, Innovation and Employment would like to acknowledge the contributions of the
following to this report:
The building natural resources work stream of the Business Growth Agenda
aims to make better use of New Zealands abundant natural resources, so we
can continue to grow our economy and look after our environment.
ACKNOWLEDGEMENTS
MYOB
The building infrastructure work stream of the Business Growth Agenda aims
to provide the physical platform that will support sustained economic growth.
Natural resources
The Ministry of Business, Innovation and Employment welcomes feedback on this report, including any
feedback relating to measures the Government is taking to facilitate the development of a competitive
and successful small business sector.
The export markets work stream of the Business Growth Agenda aims
to increase exports by New Zealand businesses, which is necessary to
lift New Zealands economic growth and living standards.
Building infrastructure
www.mbie.govt.nz
107