New Zealand Business Demography Statistics (Structural): At February 2007

New business demography series

This is the first official publication of an improved set of business demography statistics based on a recently developed statistical resource, the Longitudinal Business Frame (LBF). To enable trends to be studied, the new series has been backcast to February 2000 and released on a provisional basis.

The Business Demography series now covers all industries, and includes an expanded coverage of New Zealand businesses. Basing statistics on the LBF has addressed previous limitations in the identification of enterprise births and deaths. Newly developed methods make it possible to identify with greater certainty the level of real enterprise births and deaths, as opposed to enterprise entries and exits that include dormant enterprises, reactivations, and administrative churn (such as company restructuring and ownership changes). Further statistics on business birth, death and survival rates will be published on 26 March 2008.

The table below summarises the main differences between the new and old business demography series. There is further information on interpreting the new business demography series in the Technical notes of this release.

Business demography statistics

Business demography statistics provide an annual snapshot (as at February) of the structure and characteristics of New Zealand businesses. The series covers economically significant individual, private-sector and public-sector enterprises that are engaged in the production of goods and services in New Zealand. This generally includes all enterprises with GST turnover greater than $30,000 per year.

New Zealand business demography statistics are provided in two separate releases.

• This structural release provides an annual snapshot (as at February) of the structure and characteristics of New Zealand businesses. It includes statistics on a range of variables including industry, region, institutional sector, business type, size (employment levels), and degree of overseas ownership.
• An additional release in March will present business dynamics statistics. Business dynamics count the number of enterprise births and deaths that occurred over the previous 12 months, and analyse the survival of new births over time.

The business demography data contained in this release can be accessed through Table Builder on the Statistics New Zealand website. The tables now have data available to area unit, added as part of the making more information freely available initiative.

Total number of enterprises and geographic units

At February 2007, the number of enterprises on Statistics NZ's LBF was 463,380. The number of geographic units (business locations) corresponding to these enterprises was 499,940. These businesses engaged a total of 1.923 million employees.

When comparing February 2007 with February 2006, the number of enterprises in New Zealand increased by 2.0 percent (up 8,880). Industries showing significant growth were property and business services (up 6,890), followed by finance and insurance (up 1,890) and construction (up 1,260). The largest decline was in the agriculture, forestry and fishing industry (down 1,860). The number of business locations increased in all regional council areas between February 2006 and February 2007. The number of employees engaged grew 2.3 percent (up 42,400) in February 2007 compared with February 2006.

Industry statistics

Property and business services

The property and business services industry had the largest number of enterprises (149,860), representing 32 percent of all enterprises in New Zealand, as at February 2007. This industry also had the largest increase in the number of enterprises, up 6,890 or 4.8 percent, between February 2006 and 2007. Most of this growth (88 percent) was from non-employing enterprises.

Of the overall increase in the property and business services industry, property services contributed 71 percent. Enterprises in this industry are mainly property developers and operators, real estate agents, non-financial asset investors, and machinery and equipment hiring services.

There were approximately 230,100 employees engaged in the property and business services industry in February 2007, compared with 217,200 in February 2006 (up 12,900 or 5.9 percent). About 63 percent of this increase was in enterprises with 100 or more employees.

Agriculture, forestry and fishing

There were 78,010 enterprises predominantly engaged in the agriculture, forestry and fishing industry in February 2007, a decrease of 1,860 (2.3 percent) compared with February 2006. Most of this decrease (72 percent) was from non-employing enterprises.

The agriculture, forestry and fishing industry engaged approximately 113,800 employees in February 2007, up 1,500 (1.3 percent) from the previous year. This rise in employment numbers was mainly from services to agriculture industries.

Construction

There were 49,170 enterprises predominantly engaged in the construction industry in February 2007, an increase of 1,260 (2.6 percent) compared with February 2006. About 46 percent of this increase was from non-employing enterprises.

The construction industry engaged approximately 123,000 employees in February 2007, up 5,900 (5.1 percent) from the previous year. This rise in employment numbers was shared between firms involved in construction trade services and general construction.

Finance and insurance

There were 23,880 enterprises predominantly engaged in the finance and insurance industry in February 2007, an increase of 1,890 (8.6 percent) compared with February 2006. Most of this increase (92 percent) was from non-employing enterprises.

The finance and insurance industry engaged approximately 56,200 employees in February 2007, up 1,900 (3.5 percent) from the previous year. This rise in employment numbers was spread across enterprises engaged in insurance industries, finance, and services to finance and insurance.

Manufacturing

There were 23,100 enterprises predominantly engaged in manufacturing in February 2007, almost the same as in February 2006. Of these enterprises, 26 percent were involved in machinery and equipment manufacturing, while 16 percent were involved in metal product manufacturing.

The manufacturing industry was the largest employer in February 2007, with approximately 266,700 employees. Between February 2006 and 2007, the number of employees in manufacturing decreased by 3,900 (down 1.5 percent). All manufacturing industries at the ANZSIC subdivision level recorded a decrease in employment. The largest decrease was in printing, publishing and recorded media, followed by textile, clothing, footwear and leather manufacturing.

Regional statistics

Auckland region

Almost one-third (31 percent) of all geographic units (business locations) in New Zealand are in the Auckland region. One-third of all employees (33 percent) were engaged by these geographic units.

There were 156,140 geographic units in the Auckland region in February 2007, up 1.8 percent from February 2006. Industries recording significant increases in the Auckland region were property and business services (up 2,130 or 3.8 percent), followed by finance and insurance (up 760 or 7.3 percent) and health and community services (up 200 or 3.4 percent).

In February 2007, there were approximately 627,200 employees associated with businesses located in the Auckland region, up 2.5 percent from February 2006. The industries with large increases in employee numbers were property and business services (up 5,600 or 5.6 percent), followed by education (up 3,100 or 6.6 percent), and retail trade (up 2,200 or 2.9 percent). The largest reduction of employees occurred in the manufacturing industry (down 2,000 or 2.2 percent).

 

Remainder of North Island

Excluding the Auckland region, there were 219,700 geographic units located in the remaining regions of the North Island in February 2007. This was an increase of 1.9 percent when compared with February 2006. These geographic units engaged approximately 814,100 employees in February 2007, a 2.6 percent increase from February 2006.

Regions showing significant increases in the number of business locations established were Waikato (up 1,130 geographic units), Wellington (up 1,060) and Bay of Plenty (up 730). In these three regions, the property and business services industry contributed most to the increase (62 percent in Waikato, 88 percent in Wellington and 50 percent in Bay of Plenty).

In the Waikato and Wellington regions, the highest increase in employment occurred in property and business services (up 1,400 employees or 8.2 percent and up 2,000 employees or 5.3 percent respectively).

South Island

There were 123,900 geographic units in the South Island in February 2007. This was an increase of 2,530 (2.1 percent) from February 2006. These business locations engaged approximately 481,600 employees, an increase of 6,600 (1.4 percent) when comparing February 2007 with February 2006.

In February 2007, over half of all geographic units (63,090) and employees (approximately 255,500) in the South Island were located in the Canterbury region. Compared with February 2006, Canterbury recorded increases of 1,410 geographic units and approximately 2,800 employees in February 2007. The region contributed significantly towards the overall South Island growth in geographic units (56 percent) and number of employees (43 percent).

The increases in Canterbury in geographic units were mainly in property and business services, finance and insurance, and construction. The increases in the number of employees in the region were mainly in construction; property and business services; and accommodation, cafes and restaurants. The largest reduction of employees in Canterbury occurred in the manufacturing industry (down 500 or 1.2 percent).

Business type

Of the total number of enterprises in New Zealand in February 2007, 47 percent (218,100) were registered limited liability companies, 20 percent (94,700) were individual proprietorships and 18 percent (82,600) were partnerships. Of the total number of employees engaged, registered limited liability companies contributed 67 percent (approximately 1.298 million), while central government contributed 14 percent (approximately 269,200).

In February 2007, most registered limited liability companies were in the property and business services industry (32 percent), construction (13 percent) and retail trade (12 percent). Employees working for registered limited liability companies were mainly involved in the manufacturing industry (19 percent), followed by the retail trade industry (17 percent), and property and business services (14 percent).

Business size

Most enterprises in New Zealand (97 percent) had fewer than 20 employees in February 2007. However, these enterprises accounted for only 31 percent of all employees. Conversely, enterprises with 100 or more employees made up 0.5 percent of the total number of enterprises in New Zealand but employed 46 percent of the total number of employees.

In February 2007, 68 percent (315,050) of all enterprises were non-employing enterprises, which is the same percent in February 2006. In terms of industrial activity, 40 percent of these enterprises were predominantly involved in property and business services, 18 percent in agriculture and 10 percent in construction.

Of the total growth in enterprises, 83 percent or 7,370 were non-employing at February 2007, whereas in the year before non-employing enterprises contributed 85 percent or 13,510.

During the year to February 2007, the strongest growth in employment came from businesses with 100 or more employees (up 27,300 employees or 3.2 percent), followed by firms with 50–99 employees (up 4,500 employees or 2.7 percent).

 

For technical information contact:
Mathew Page, Christchurch 03 964 8700
or Geoff Mead, Auckland 09 920 9100
Email: info@stats.govt.nz