Growth in small-business numbers took a dive in the last year, the sector's latest census has found.
A review of small to medium-sized enterprises (SMEs) by the Ministry of Economic Development this week found their numbers rose 10,047 or 3.1 per cent to 334,340 in the year to February 2003,
compared with a rise of 10.2 per cent the year earlier.
However, their contribution to the economy increased 2 per cent, rising from 37.2 per cent of total value-added output in 2003 to 39 per cent in 2004.
The proportion of firms defined as SMEs - which the ministry defines as employing 19 or fewer people - was unchanged at 96.3 per cent.
They are predominant in the property and business services sector, accounting for almost 99 per cent of all enterprises in this industry, as at February last year.
Most are found in regions with large urban centres, including the Auckland, Canterbury, Wellington and Waikato regions.
Similar to previous years, enterprise entries and exits are dominated by firms employing five or fewer employees, accounting for 94.6 per cent of entries and 96.2 per cent of exits.
The report shows a particularly strong profit result for businesses with five or fewer employees.
The average real profit per employee for this group in 2004 was $31,169, up from $26,296 in 2003.
Few businesses - less than 3 per cent - have more than 1 per cent equity owned by overseas shareholders.
Data on participation by gender showed men still account for the majority of employers and the self-employed.
Women made up 30 per cent of employers and 33 per cent of the self-employed, as at March.
* SME Demographics
The number of SMES increased 3 per cent in the year to February 2005.
96 per cent of firms employ 19 or fewer people.
87 per cent of firms employ five or fewer people.
63 per cent of firms have no employees.
11 per cent of people were self-employed, as at March 2006.
