SMALL BUSINESSES IN NEW ZEALAND - mbie.govt.nz · SMALL BUSINESSES IN NEW ZEALAND How do they...
Transcript of SMALL BUSINESSES IN NEW ZEALAND - mbie.govt.nz · SMALL BUSINESSES IN NEW ZEALAND How do they...
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
50 Or More 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
50 Or More 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 Business Demography, Feb 2015
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
Data source: Statistics New Zealand Business Demography, Feb 2015
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
Data source: Statistics New Zealand Business Operations Survey, 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 Business Demography, Feb 2015
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
Professional, scientific & technical services
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
Professional, scientific & technical services
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
Data source: Statistics New Zealand Business Operations Survey, 2015
Chart 19: Percentage of firms introducing new or significantly improved products by employee size group
Data source: Statistics New Zealand Business Operations Survey, 2015
Data source: Statistics New Zealand Business Operations Survey, 2015
Data source: Statistics New Zealand Business Operations Survey, 2015
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.