The evolution of SME policy: the case of New Zealand

Figures & data

Table 1. Timeline of small and medium-sized enterprise (SME) definitions in New Zealand.

Source SME definition	SME definition
Devlin and Le Heron (1977)	Fewer than 50 FTEs (manufacturing) Fewer than 25 FTEs (wholesale) and less than NZ$100,000 per annum turnover Fewer than 25 FTEs (retail) and less than NZ$250,000 per annum turnover Fewer than 10 FTEs (service) and less than NZ$100,000 per annum turnover
Bollard (1988)	Very small: fewer than 10 employees and fewer than 20 employees for the manufacturing sector Small: fewer than 20 employees and fewer than 50 employees for the manufacturing sector
Cameron and Massey (1999)	Micro: fewer than 5 FTEs Small: fewer than 50 FTEs Medium: between 50 and 100 FTEs Large: more than 100 FTEs
Ministry of Commerce (1999)	Small: 0–5 employees Medium: 6–19 employees SME: ‘a firm with up to 19 employees’

Note: FTE, full-time equivalent.

Table 2. Key informants’ details.

Participant	Time frame active in small and medium-sized enterprise (SME) policy	Role
A	1973–94	Business advisor	Business support agency
		Academic	University
B	1973–2008	Researcher	Business support agency
		Academic	University
C	1978–2010	Business advisor	Two different business support agencies
D	1973–86	Trade commissioner	Business support agency
E	1983–2006	Policy advisor	Two government agencies
F	1989–99	Policy advisor	Government agency
G	1985–2010	Academic	University
H	1984–94	Researcher	Private research institute
I	1990–2011	Academic	University
J	1999–2009	Policy advisor	Government agency
K	1994–2008	Policy advisor	Government agency
L	2005–12	Policy advisor	Government agency
M	2001–16	Business advisor	Business support agency
N	1994–2003	Policy advisor	Business support agency

Table 3. Summary of small and medium-sized enterprise (SME) policy process.

	Establishing an SME policy, 1978–83	Economic reform, 1984–88	Entrepreneurial economy, 1999–2008
Actors involved
Government actors	Medium	High	High
Societal actors	Low	Medium	High
International actors	Low	Medium	High
Context
Socioeconomic context	High levels of inflation, economic stagnation and rising unemployment	Initial economic stagnation then recession, unemployment doubled, high levels of inflation	Period of economic stability, focus on growth, innovation, productivity
Institutional context	Protectionist approach ‘Fortress New Zealand’ resulting in an overregulated economy and a heavily subsidized agricultural sector	Sweeping neoliberal economic reforms to open the economy to international competition	Neoliberal economic principles form an overarching economic framework
Events	Major past events that had a lasting impact into this era: 1966 Wool price crisis 1970s Double oil shocks 1973 UK's membership of the European Economic Community (EEC) 1971 Bolton Report and Wiltshire Report Major current events: 1981 Launch of ‘Think Big’ economic strategy 1983 Signing of Closer Economic Relations (CER) trade agreement with Australia	1984 Fourth Labour Government elected 1987 Wall Street share market crash 1987 Establishment of Small Enterprise Association of Australia and New Zealand (SEAANZ) 1990 Fourth National Government elected	1984 Asia Pacific Economic Cooperation (APEC) started work on SMEs 1993 Organisation for Economic Co-operation and Development (OECD) SME Working Party established 1999 Fifth Labour Government elected 2008 Global Financial Crisis
SME policy outputs	1978 Small Business Agency (SBA)	1986 Market Development Board established 1987 Closure of the SBA 1989 Establishment of regional development councils (rebranded as business development boards (BDBs)) 1998 BDBs disestablished and replaced by BIZ centres to aid access to management capability, skills and knowledge	2002 Appointment of Minister of Small Business (outside of Cabinet) 2002 New Zealand Trade & Enterprise (NZTE) 2002 Establishment of Ministerial Group on SMEs 2003 Establishment of Small Business Directorate & of Small Business Advisory Group (SBAG)

Devlin, M., & Le Heron, R. B. (1977). Report to the development finance corporation on dimensions of New Zealand small business. Palmerston North: Massey University.

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Bollard, A. (1988). Small business in New Zealand. Wellington: Allen & Unwin.

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Cameron, A., & Massey, C. (1999). Small and medium-sized enterprises: A New Zealand perspective. Auckland: Longman.

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Ministry of Commerce. (1999). SMEs in New Zealand: Structure and dynamics. Wellington: Ministry of Commerce.

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