The importance of small & medium-sized enterprises (SMEs) in New Zealand

Essay by andy3yUniversity, Bachelor'sC+, March 2008

download word file, 5 pages 3.0

Developing a group of diverse and competitive small and medium enterprises (SMEs) is a central theme towards achieving sustainable economic growth. In New Zealand, SMEs are crucial to the economic growth process and play an important role in the country’s overall production network. Some advanced economies have succeeded because SMEs form a fundamental part of the economy, comprising over 98% of total establishments and contributing to over 65% of employment as well as over 50% of the gross domestic product. Although the numbers might be lower in New Zealand, SMEs have the potential to contribute substantially to the economy and can provide a strong foundation for the growth of new industries as well as strengthening existing ones, for New Zealand’s future development. Therefore, this essay expounds the role and significance of small and medium sized enterprises and demonstrates contributions to economy and society in New Zealand.

The small & medium-sized enterprises (SMEs) make a significant that increase contribution to New Zealand economy.

"The Labour-led government recognises SMEs as one of the drivers of the economic transformation we envisage for this country and I am working hard with them to address roadblocks in their path in the review of regulations that I have just launched," Lianne Dalziel said. (Lianne Dalziel, Ministry of Economic Development Report, 2006). In New Zealand, SMEs account for 96% of all enterprise and 30% of all employees. Obviously, we could realize the important role that small to medium-sized enterprise (SMEs) play in the New Zealand economy. Previous The New Zealand Ministry of Economic Development report and SMEs in New Zealand: Structure and Dynamics 2007 (statistical reports jointly produced by the Ministry of Economic Development and Statistics New Zealand since 1999) estimates an increase in the contribution of SMEs to total value...