Latest Research Debunks NZ Firm Size Myths

New research shows that New Zealand does not have a high proportion of small firms compared with Australia and other OECD countries - despite claims to the contrary by business lobby groups, Council of Trade Unions economist Peter Conway said today.

The research was released at the recent conference of the NZ Association of Economists by Duncan Mills from Treasury, and Jason Timmins from the economic research agency, Motu.

“This research shows that lobby groups have been using misleading statistics to exaggerate the importance of the small business sector to try to influence Government policy on employment law and other issues,” Peter Conway said.

The research shows that: 96.1 per cent of NZ firms employ fewer than 20 workers but 59.3 per cent employ no workers at all the 96.1 per cent of firms employing fewer than 20 workers account for only 30 per cent of the overall labour force 96.5 per cent of Australian firms employ fewer than 20 workers NZ does not have proportionately more small firms than other OECD countries on average

The researchers conclude that “policy interventions and/or policy issues that are based on a rationale that New Zealand has an unusually large proportion of small firms are probably not well founded” and that the data “does not support the view that compliance costs are of more concern in New Zealand than other OECD countries due to the high proportion of small firms”.

Peter Conway said that small firms are vital to the economy but policy should not be based on a mistaken belief that New Zealand is somehow different in our average firm size from other comparable economies.

© Scoop Media

New Zealand Council of Trade Unions

Te Kauae Kaimahi

The New Zealand Council of Trade Unions Te Kauae Kaimahi brings together over 350,000 New Zealand union members in 40 affiliated unions. We are the united voice for working people and their families in New Zealand.

CONTACT NEW ZEALAND COUNCIL OF TRADE UNIONS

• Website - union.org.nz/
• Phone - +64 4 385 1334
• YouTube
• Physical Address - Level 7, West Block, Education House, 178 Willis St, Wellington.

• Media Contact - huiaw@nzctu.org.nz
• Facebook
• Twitter - @FairnessNZ
• Postal Address - PO Box 6645, Marion Square, Wellington 6141.

Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>