The fact that Small & Medium Enterprises (SMEs) constitute the backbone of the New Zealand economy has been testified by a recent Report of the Economic Development Ministry.
The Report, ‘SMEs in New Zealand: Structure and Dynamics,’ produced jointly with Statistics New Zealand said that like most other economies of the world, SMEs accounted for 97% of all enterprises.
It has defined New Zealand companies employing 19 employees or less as SMEs that are usually owner-operated.
According to the Ministry, these enterprises tend to have specialist staff and at management level and are not part of a large business or group of companies with access to managerial expertise.
“In New Zealand, about 90% (421,823) of all enterprises employ five or fewer people, and 69% (323,935) of all enterprises have no paid employees. These enterprises are described as Zero Employee Enterprises,” the Report said.
Such enterprises are structured and operated differently to businesses with employees. An employee count of zero is typically an indicator of enterprises with only a working-proprietor who does not receive salary. These enterprises might operate in areas such as asset management, property investment or where the labour input is provided by the employees or working owners of other businesses.
The importance of SMEs in the New Zealand economy has been underscored by the Indian Newslink Indian Business Awards (IBA), which had a category for Small to Medium-Sized enterprises.
Sponsored by 2degrees Mobile Limited, the category had a large number of entries from the Indian business community.
