by Robert T. Hamilton and Leo Paul Dana Major liberalization during the early 1980s transformed New Zealand into one of the most open and deregulated economies in the world. Yet the countryâs lack of technology-based industries made it difï¬cult for the nation to maintain its place among the leading group of Organization for Cooperation and Development (OECD) countries. There is a need to transform the economy again, away from its dependence on agricultural commodities and toward a greater reliance on modern, knowledge-based businesses. With many of the larger enterprises now owned and controlled from overseas, this transformation will require a major contribution from the countryâs small business sector. In May 2001, the government implemented a policy to encourage entrepreneurship, with a fund of $100 millionâa substantial budget for a nation with a population of 3.8 million. New Zealandâs business is small business, both in terms of numbers and ownership. The latest ï¬gures for 1999 conï¬rm that 86 percent of its 259,000 businesses have ï¬ve or fewer employees (Statistics New Zealand 2000). The government ofï¬cially has redeï¬ned these as micro businesses (Statistics New Zealand 1999), and these ï¬rms account for approximately 27 percent of the employment in this country.
Journal of Small Business Management – Wiley
Published: Oct 1, 2003
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