SMALL BUSINESSES IN NEW ZEALAND€¦ · Data source: Statistics New Zealand Business Demography, Feb 2015 Data source: Statistics New Zealand Linked Employee-Employer Data, 2014 Female

4%

20%20%

45%

0-19 20-49 50+

Number of employees

0% 50% 100%

0-19 employees 20 or more employees

6,141

990

19,152

17,919

1,011

17,016

702

16,437

25,998

14,523

15,975

9,411

4,821

54,519

52,425

22,041

68,076

34,686

105,777

Education & training

Public administration& safety

Manufacturing

Utilities

Mining

Accommodation & food services

Healthcare & social assistance

Wholesale trade

Retail trade

Transport, postal &warehousing

Administrative & support services

Arts & recreation services

Information, media & communications

Professional, scientific & technical services

Construction

Other services

Agriculture, Forestry& Fishing

Finance & insurance services

Rental, hiring & real estate

$57,163m

$13,908m

$100,617m

$46,308m

0-19 Employees

20-49 Employees

$217,995mTOTAL

50 Or More Employees

Excluded Industries / Other Items

227,850

372,030

280,240

1,165,510

1-5 Employees

6-19 Employees

2,045,610TOTAL

20-49 Employees


Data source: Statistics New Zealand Business Demography, Feb 2015

Chart 2: Number of Employees by Employee Size Group

353,070

97,293

37,239

9,459

5,109

Zero Employees

1-5 Employees

6-19 Employees502,170

TOTAL

20-49 Employees


SMALL BUSINESSES IN NEW ZEALANDHow do they compare with larger firms?

SMALL BUSINESSES* DOMINATE OUR INDUSTRIES

May 2016

Chart 1: Number of Enterprises by Employee Size Group

Chart 4: Number and Percentage of Enterprises with 0-19 Employees by Industry

Chart 5: Percentage of Enterprises with Common Ownership

◊

◊


Data source: Statistics New Zealand, National Accounts Mar 2013 Data source: Statistics New Zealand Business Demography, Feb 2015

* Small businesses are defined here as those enterprises with fewer than 20 employees. There is no official definition of a small business in New Zealand, however enterprises with fewer than 20 employees has traditionally been used and referred to in some legislation. Australia also uses the same definition which enables comparisons to be made. Internationally there is no universally used definition for a small business: many economies use a limit higher than 20 employees.

97%OF ENTERPRISES HAVE

FEWER THAN 20 EMPLOYEES (487,602 ENTERPRISES) (CHART 1)

70%OF ENTERPRISES HAVE

ZERO EMPLOYEES (CHART 1)

29%OF EMPLOYEES IN NEW ZEALAND ARE EMPLOYED BY ENTERPRISES

WITH FEWER THAN 20 EMPLOYEES (599,880) (CHART 2)

26%OF NEW ZEALAND’S GDP IS

ESTIMATED TO BE PRODUCED BY ENTERPRISES WITH FEWER THAN 20

EMPLOYEES (CHART 3)

THE RENTAL, HIRING, AND REAL ESTATE SERVICES INDUSTRY

HAS THE HIGHEST NUMBER OF ENTERPRISES WITH FEWER THAN 20

EMPLOYEES (CHART 4)

96%OF ENTERPRISES WITH FEWER THAN 20 EMPLOYEES ARE INDEPENDENT

OPERATIONS NOT OWNED BY OTHERS (CHART 5)

MB1

3466

_MAY

16


Chart 3: Estimated Contribution to GDP by Employee Size Group

115,300

1-19 20-49 50+

Number of employees2012 2013 2014

100,200

28,900

121,100

104,900

29,600

103,300

34,400

97,000

2009 2010 2011 2012 2013 20142009 2010 2011 2012 2013 2014

6%

12%

6%

11%

7%

14%

7%

12%

7%

13%

6%

13%

7%

14%

6-19 employees 20+ employees

2015 2015 2009 2010 2011 2012 2013 20142009 2010 2011 2012 2013 2014 2015 2015

6-19 employees 20+ employees

15%

23%

12%

22%

15%

26%23%

28%

23%

29%

21%

30%

25%

30%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2006 2007 2008 2009 2010 2011 2012 2013 2014

Num

ber o

f ent

erpr

ises

Births Deaths

2015

21

9

14

10

5

3

45

73

82

78

74

69

1

3

5

4

3

3

3

2

1

1

1

5

14

21

22

0

1-5

6-19

20-49

50-99

100+

Num

ber o

f em

ploy

ees

Societies and Associations

Trusts/Estates

All Other Entities

Individual Proprietorship

Partnership

Registered Limited Liability Company

17

Num

ber o

f em

ploy

ees

< 1 year

21+ years

3

2

27

18

12

24

19

12

26

27

26

19

34

49

1-19

20-49

50+

6-10 years1-5 years

11-20 years

SMALL BUSINESSES ARE YOUNG AND DYNAMIC

Chart 6: Type of Enterprise by Employee Size Group (%)

◊

Data source: Statistics New Zealand Business Demography, Feb 2015 Data source: Statistics New Zealand Business Demography, Feb 2015

Data source: Statistics New Zealand Annual Enterprise Survey, 2015Data source: Statistics New Zealand Business Demography, Feb 2015

Data source: Statistics New Zealand Business Operations Survey, 2015

Data source: Statistics New Zealand Linked Employer-Employee Data, Dec 2012-14 Data source: Statistics New Zealand Business Demography, Feb 2015


30% OF FIRMS WITH 1-19 EMPLOYEES HAVE EXISTED FOR FIVE YEARS

OR FEWER. THIS COMPARES TO 17% FOR LARGER FIRMS

(CHART 7)

42% OF FIRMS WITH ZERO

EMPLOYEES BORN IN 2010 CEASED TO EXIST BY 2015.

FIRMS WITH 1-19 EMPLOYEES HAVE SIMILAR SURVIVAL RATES

TO FIRMS WITH 10-99 EMPLOYEES, BUT MUCH LOWER THAN LARGER FIRMS (CHART 8)

47% OF ALL JOBS CREATED IN THE

YEAR ENDING DECEMBER 2014 WERE IN FIRMS WITH

1-19 EMPLOYEES (CHART 10)

$43,802WAS THE AVERAGE SALARY OF EMPLOYEES IN ENTERPRISES

WITH 1-19 EMPLOYEES (CHART 9)

Chart 7: Age of Enterprise by Employee Size Group (%)

Chart 8: Survival Rates of Enterprises Born in 2010

Chart 10: Annual Job Creation by Employee Size Group

Chart 12: Percentage of Businesses Undertaking R&D Chart 13: Percentage of Businesses Exporting

Chart 9: Average Salaries and Wages per Employee (RME)

Chart 11: Births and Deaths of Employing Small Business

0

1-5

10-19

6-9

20-49

50-99

100+

Num

ber o

f em

ploy

ees

42%

57%

65%

59%

61%

64%

80%

58%

43%

35%

41%

39%

36%

20%

Survived in 2015 Ceased by 2015

42,021

53,904

42,792

54,784

43,802

55,065

1-19 20+

Number of employees

2012 2013 2014

ZERO-EMPLOYING FIRMS GENERATE VALUE

SELF-EMPLOYED ARE ALSO SMALL BUSINESS

◊

◊

Chart 14: Zero-Employing Firms by Industry

Chart 15: Self-Employed by Age and Sex

Chart 16: Self-Employed by Industry

Chart 17: Self-Employed by Ethnicity


Data source: Statistics New Zealand Linked Employee-Employer Data, 2014

Female

152,601 249,264Male

Data source: Statistics New Zealand Linked Employee-Employer Data, 2014

Data source: Statistics New Zealand Census 2013

$200,800 WAS THE AVERAGE REVENUE PER

ENTERPRISE FOR FIRMS WITH ZERO EMPLOYEES IN 2014. THIS COMPARES WITH AN AVERAGE

REVENUE OF $178,000 FOR FIRMS WITH 1-19 EMPLOYEES (ANNUAL ENTERPRISE SURVEY, AUG 2015)

28% OF FIRMS WITH ZERO EMPLOYEES

ARE IN THE RENTAL, HIRING AND REAL ESTATE INDUSTRY

100,266

48,228

40,524

353,070TOTAL

34,377

32,184

97,491

Rental, hiring & real estate

Agriculture, forestry & fishing


Construction

Finance and insurance services

All others

44% OF SELF-EMPLOYED ARE OVER THE AGE OF 50. MOST OF THE

GROWTH IN SELF-EMPLOYMENT OVER THE PAST DECADE

CAME FROM THOSE OVER 50, WHILE SELF-EMPLOYMENT OF YOUNGER AGE GROUPS

HAS FALLEN (CHART 15)

16% OF THE SELF-EMPLOYED

WORK IN THE CONSTRUCTION INDUSTRY (CHART 16)

10% OF MĀORI RUN THEIR OWN BUSINESS, BEING EITHER

SELF-EMPLOYED, OR EMPLOYING OTHERS

* In this factsheet, data on numbers in self-employment comes from linked employee–employer data. A person is self-employed if they derive the majority of their income in one tax year from self employment. A person can be self-employed and also work as an employee in another business. A person who is self-employed at multiple businesses is only counted once.

4,527

32,052

74,232

TOTAL

15-19

20-29

30-39

113,451

109,383

41,475

40-49

26,745 65+

50-59

60-65

401,865

TOTAL

401,865 25,044

176,901

26,364Rental, hiring & real estate

51,747Agriculture, forestry & fishing

57,027


64,782Construction

Retail trade

All others

TotalMāoriPacific Peoples

Rest of employed

Self-employed

Chart 20: Percentage of Firms Accessing Debt Financing on Acceptable Terms

Chart 21: Percentage of Firms Accessing Equity Financing on Acceptable Terms

6-19 20-49 50+

Number of employees

223,000

157,000

579,000

78,000

49,000

182,000

Full-time jobsPart-time jobs

6-19 20+

Number of employees

2011

2013

2015

16%

24%

15%

21%

17%

23%

Chart 18: Full-time/Part-time Employment by Employee Size Group


Chart 19: Percentage of firms introducing new or significantly improved products by employee size group




SMALL FIRMS FACE UNIQUE CHALLENGES◊EMPLOYMENT

26% OF EMPLOYEES AT

ECONOMICALLY-SIGNIFICANT FIRMS WITH 6-19 EMPLOYEES

WERE PART-TIME. THIS COMPARES WITH

24% FOR FIRMS WITH 20-49 AND 50+ EMPLOYEES.

(CHART 18)

INNOVATION

17% OF FIRMS WITH

6-19 EMPLOYEES INTRODUCED INNOVATIVE GOODS OR SERVICES IN 2015. THIS

COMPARES TO 23% FOR FIRMS WITH 20 OR MORE EMPLOYEES

ACCESS TO ICT

FOR BUSINESSES WITH 6-19 EMPLOYEES:

95% USE THE INTERNET

92% ARE CONNECTED BY

BROADBAND

66% HAVE A WEBSITE

44% HAVE INTERNET SALES

ACCESS TO FINANCE

87% OF FIRMS WITH

6-19 EMPLOYEES WHO REQUESTED DEBT FINANCE COULD ACCESS

IT ON ACCEPTABLE TERMS (CHART 20)

78% WHO REQUESTED EQUITY

FINANCE COULD ACCESS ON ACCEPTABLE TERMS (CHART 21)

DEBT FINANCE IS SOUGHT BY MORE BUSINESSES THAN

EQUITY FINANCE

* Data source: Statistics New Zealand Business Operations Survey, 2014

6-19 20-49Number of employees

20132014

2015 89%

92%

88%

95%

87%

92%

6-19 20-49Number of employees

2013

2014

2015 83%

87%

77%

85%

78%

89%

CONDITIONS DEFINITIONS◊ ◊This work is based on/includes Statistics New Zealand’s data which are licensed by Statistics New Zealand for re-use under the Creative Commons Attribution-Noncommercial 3.0 New Zealand license.Please refer to the following data quality statements outlining the coverage and limitations of each data source:

› The Annual Enterprise Survey provides annual information on financial performance and financial position for industry and sector groups operating within New Zealand. The target population of the survey are economically significant enterprises operating in New Zealand, whose main activity is not superannuation funds, residential property operation, foreign government representation, religious services, or private households employing staff and undifferentiated goods-and service-producing activities of households for own use. http://www.stats.govt.nz/browse_for_stats/businesses/business_finance/annual-enterprise-survey-info-releases.aspx

› Business Demography statistics provide an annual snapshot (as at February) of the structure and characteristics of New Zealand businesses. The series covers all economically significant enterprises engaged in the production of goods and services in New Zealand. http://www.stats.govt.nz/browse_for_stats/businesses/business_characteristics/nz-business-demography-statistics-info-releases.aspx

› The Business Operations Survey is an annual modular survey providing statistics on business practices and behaviours that may have some impact on New Zealand business performance. The target population for the survey are economically significant enterprises with six or more employees operating for one year or more. http://www.stats.govt.nz/browse_for_stats/businesses/business_growth_and_innovation/business-operations-survey-info-releases.aspx

› Linked Employer-Employee Data provides a quarterly insight into the operation of New Zealand's labour market. The data covers all individuals who receive income from which tax is deducted at source: http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/linked-employer-employee-data-info-releases.aspx

› The National Accounts (Industry Benchmarks) provide comprehensive industry data on production, investment, and capital stock. This data was analysed in a supply-use balancing framework to reconcile the production, expenditure, and income measures of gross domestic product (GDP). It focuses on industry data and the benchmarks for the level of economic activity, which update and maintain the quality of quarterly GDP statistics. http://www.stats.govt.nz/browse_for_stats/economic_indicators/NationalAccounts.aspx

› The Quarterly Employment Survey measures the number of jobs (technically referred to as filled jobs), earnings, and paid hours for a sample of economically significant businesses. http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/labour-market-statistics-information-releases.aspx

› Enterprise: is an institutional unit and generally corresponds to legal entities operating in New Zealand. It can be a company, partnership, trust, estate, incorporated society, producer board, local or central government organisation, voluntary organisation, or self-employed individual.

› Enterprise birth: a new enterprise starting operation, with the restriction that no other national businesses are involved. These do not include entries into the population due to reactivations, mergers, break-ups, split-offs, or other restructuring of a group of businesses linked by ownership or control. It also excludes entries into a population resulting from changes to characteristics of existing businesses.

› Enterprise death: an enterprise ceasing operation, with the restriction that no other domestic businesses are involved in the event. This does not include exits from the population due to temporary inactivity, mergers, takeovers, break-ups, or other restructuring of a group of businesses linked by ownership or control. It also excludes exits from a population resulting from changes to characteristics of businesses which remain active.

› Enterprise group: a set of enterprise units linked by common ownership. Statistics New Zealand only records links of over 50% shareholding between enterprises. Enterprise groups include all resident groups, foreign controlled enterprise groups and domestically controlled enterprise groups.

For more information on the definitions of Business Demography sourced data see:

› http://www.stats.govt.nz/browse_for_stats/businesses/business_characteristics/BusinessDemographyStatistics_HOTPFeb15/Definitions.aspx

› Jobs created: The net number of jobs created by a business, since the previous reference date.

› Full-time jobs: jobs where the employee works for 30 hours or more per week.

› Part-time jobs: jobs where the employee works for less than 30 hours per week.

› RME (Rolling Mean Employment) is a 12-month moving average of the monthly employee count for an enterprise.

http://www.stats.govt.nz/browse_for_stats/businesses/business_finance/annual-enterprise-survey-info-releases.aspx

http://www.stats.govt.nz/browse_for_stats/businesses/business_finance/annual-enterprise-survey-info-releases.aspx

http://www.stats.govt.nz/browse_for_stats/businesses/business_characteristics/nz-business-demography-statistics-info-releases.aspx



http://www.stats.govt.nz/browse_for_stats/businesses/business_growth_and_innovation/business-operations-survey-info-releases.aspx



http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/linked-employer-employee-data-info-releases.aspx



http://www.stats.govt.nz/browse_for_stats/economic_indicators/NationalAccounts.aspx



http://www.stats.govt.nz/browse_for_stats/income-and-work/employment_and_unemployment/labour-market-statistics-information-releases.aspx




http://www.stats.govt.nz/browse_for_stats/businesses/business_characteristics/BusinessDemographyStatistics_HOTPFeb14/Definitions.aspx



Documents

SMALL BUSINESSES IN NEW ZEALAND€¦ · Data source: Statistics New Zealand Business Demography, Feb 2015 Data source: Statistics New Zealand Linked Employee-Employer Data, 2014 Female