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Number of Businesses in NZ Up 4 Percent

26 October 2006

Number of Businesses in New Zealand Up 4 Percent

The number of non-farming businesses increased 4 percent in February 2006 compared with February 2005, following a 3 percent increase in the previous year, Statistics New Zealand said today.

In February 2006, there were 346,000 businesses in New Zealand. Property and business services continues to be the industry with the largest number of businesses, representing 36 percent of all enterprises in New Zealand. This year's increase in business numbers resulted mainly from property and business services (up 5,900), followed by construction (up 2,300). These industries also contributed most to last year's growth. The majority of the new businesses in these industries were non-employing (83 percent in property and business services, and 52 percent in construction).

Ninety-six percent of non-farming businesses had fewer than 20 employees, but in total this group accounted for less than a third of all New Zealand employees. Ninety-seven percent of the annual growth in business numbers comes from businesses with fewer than 10 employees. Business numbers increased in all regional council areas in February 2006 compared with February 2005.

More than three-quarters of New Zealand businesses were located in the North Island, with 35 percent in the Auckland region. The number of businesses increased by 3 percent in the North Island and by 4 percent in the South Island.

Business demography statistics exclude businesses engaged in farming, and generally exclude businesses with GST turnover less than $30,000 per year.

Brian Pink

Government Statistician


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