As we all know small businesses are the lifeblood of the New Zealand economy and now more than ever are vital to us keeping New Zealand moving. The team at 3rd Arm Admin are passionate about small and medium businesses and helping them to succeed so thought we would give you some valuable information around just how valuable they actually are.
A small business has a number of size limits depending on who you are talking to but can generally be described as a firm with fewer than 20 employees. They make up the majority of businesses in New Zealand and are the backbone of our economy.
Small businesses in Aotearoa employ 29% of our overall workforce and contribute over a quarter of our gross domestic product. They play a vital role in our economy by supporting regional economic growth as well as supplying larger exporting businesses.
Increasing innovative businesses builds employment and improves exports. Nothing creates sustainable, highly paid jobs and boosts our living standards better than confidence and growth in business.
Small businesses create nearly half the new jobs. They increase employment and incomes as small businesses grow and succeed and we all know that sustainable job opportunities change lives.
New Zealand is ranked first for doing business worldwide. But it is vitally important for a country with over half a million small businesses, and very few large businesses, that we keep adapting and making improvements. Furthermore, minor increases in efficiency will make a significant difference for New Zealand’s economy. In a fast-evolving environment with ever-increasing technologies and forms of operating, having creative and agile small enterprises is more vital than ever.
So How do Small Businesses Contribute to the New Zealand Economy?
Employing Local Workers
Small businesses add to local economies by introducing prosperity and creativity to the city where the business is located. Small businesses also help to stimulate economic growth by providing job opportunities for people who might not be employable by larger businesses. Small businesses tend to attract talent that invents new products or implements new solutions for already existing ideas.
Larger companies will also profit from small firms within the same local community. Often large firms depend on small firms to fulfill different company functions through outsourcing.
Adapting to Changing Climates
Many small businesses also have the capability to respond quickly and adapt to changing economic climates. This is because small businesses are often very consumer-centric, and they understand the community’s needs. In the midst of an economic crisis, such as COVID-19, many local customers remain loyal to their preferred small businesses. This loyalty means that in difficult times, small businesses are often able to stay afloat, which can further strengthen local economies. #supportlocal #supportlocalbusiness.
The team at 3rd Arm Admin are proud to be part of both the local Porirua community and also the greater Wellington region. We know and understand your value and our goal is to help you succeed. Feel free to get in touch by calling us at 04 2329199 or leave your details below and we will be in touch.
