Business survival rates in the professional, scientific and technical services industry in New Zealand

2007–2015, % of surviving enterprises in the reference year

Definitions

Survival rate is the percentage of enterprise births (in the business demography population) in each reference year that survives into future reference years (surviving enterprise births divided by total enterprise births for a particular reference year). To be a survivor, the enterprise must have existed at every reference year between its birth year and the given reference year.

ANZSIC06: Australian and New Zealand Standard Industrial Classification 2006. A business is normally assigned to an ANZSIC06 category according to the predominant activity it is engaged in. ANZSIC06 is a hierarchical classification with four levels: division, subdivision, group, and class.

Birth: occurs when a new enterprise starts operation (ie a combination of production factors is created, and no other national businesses are involved). Births do not include entries into the population due to reactivations, mergers, break-ups, split-offs, or other restructuring of a group of businesses linked by ownership or control. Changes to characteristics of existing businesses are not births (this is largely based on, and fully consistent with, the Eurostat definition of enterprise births). To be a birth in the business demography population, the enterprise and associated geographic units existed at neither time T-1 year nor time T-2 years.

Death: occurs when an enterprise ceases operation (ie a combination of production factors is dissolved, and no other domestic businesses are involved). Deaths do not include exits from the population due to temporary inactivity, mergers, takeovers, break-ups, or other restructuring of a group of businesses linked by ownership or control. Changes to characteristics of businesses that remain active are not deaths (this is largely based on, and fully consistent with, the Eurostat definition of enterprise deaths). To be considered a death in the business demography population, the enterprise and associated geographic units exist at neither time T year nor time T+1 year.

Limitations of the data

All numbers are provisional and subject to revision in the next release.
The largest revisions are expected in the most recent reference periods. This is mainly due to lags associated with processing administrative data.

he Business Demographic statistics on the number of business births, deaths and continuing business rely on a variety of data sources to identify a continuing business that for example undergoes a change of legal ownership and restructuring in administrative data sources as well as genuine business start-ups and closures. These data sources are not comprehensive and are of lower quality for small non-employing businesses. When businesses register for GST and are added (or 'birthed') onto the Business Frame, they are given a new reference number. Company restructuring and changes of ownership can result in a new GST registration being filed, even though it relates to an existing business. Both the Business Frame and the LBF have procedures in place to identify links between new and existing businesses, but there is no guarantee that a link will be identified. Therefore caution is required in the interpretation and use of these statistics.

Inclusions

Business demography statistics coverage is limited to economically significant enterprises that are engaged in producing goods and services in New Zealand. An enterprise must meet at least one of the following criteria:
- annual expenses or sales subject to GST of more than $30,000
- 12-month rolling mean employee count of greater than three
- part of a group of enterprises
- registered for GST and involved in agriculture or forestry
- over $40,000 of income recorded in the IR10 annual tax return (this includes some units in residential property leasing and rental).

Exclusions

Statistics NZ exclude all non-trading or dormant enterprises, as well as enterprises outside New Zealand, from business demography statistics.
For more information visit http://www.stats.govt.nz/browse_for_stats/businesses/business_characteristics/BusinessDemographyStatistics_HOTPFeb15/Data%20Quality.aspx

Data provided by

Stats NZ

Dataset name

Business Demography Statistics: Survival rates of enterprise births by industry 2015

Webpage:

http://www.stats.govt.nz/browse_for_stats/businesses/business_characteristics/BusinessDemographyStatistics_HOTPFeb15.aspx

How to find the data

This dataset was created by collating data from the document 'New Zealand Business Demography Statistics: February 2015 – tables (Excel, 28 sheets, 316kB)'

Import & extraction details

File as imported: Business Demography Statistics: Survival rates of enterprise births by industry 2015

From the dataset Business Demography Statistics: Survival rates of enterprise births by industry 2015, this data was extracted:

  • Sheet: Table 11
  • Range: C12:BD31
  • Provided: 1,080 data points

This data forms the table Business - Survival rates of enterprise births by industry 2006–2015.

Dataset originally released on:

October 29, 2015

About this dataset

Business demography statistics provide an annual snapshot (at February) of the structure and characteristics of New Zealand businesses. The series covers economically significant enterprises that are engaged in producing goods and services in New Zealand.