I have this feeling that small businesses are actually the basis for funding everything in our country and supply the most jobs. I know it sounds bizarre but check this out:
What are businesses that produce things?
A producer is a person, company, or country that makes, grows, or supplies goods or commodities for sale. Though there are many types of organisations such as Lawyers, Councils, Doctors or even Government that are essential to us they are all reliant on Producers like farmers, factories, weavers and even web designers to create the initial thing that sells and then that money continues through society and pays for peoples wages, that then pay rates, taxes, etc.
How many small businesses are there?
Who employs the most?
The stats will tell you that large businesses employ the most employees but if you count sole traders then that equates to around 910,000 people who get their income directly from small businesses which is nearly exactly the same as large companies that provide 916,000 jobs. More than a quarter of the large companies employees are Government such as defense, education, councils, etc.
So what does this mean?
Here's what I'm thinking at the moment:
- High taxes such as the 47% in taxes employers pay for employees or a 28% income tax are more detrimental to small businesses (97% of businesses) than they are for larger organisations. It inhibits growth and encourages companies to move offshore or to find ways to avoid tax.
- Government business development funding should be targeted at small business because they provide the majority of productive jobs in NZ. Remember, those are the businesses that crete the initial thing for sale that is the start of our Gross domestic product (GDP).
- We need more Small Business Producers because it creates more money in our economy which funds essential non productive sectors such health, Government and and even the larger companies who are not Producers.
I'm not a statistician or economist so if I'm wrong please let me know and I may adjust my thinking but at the moment this is what is on my mind. Let me know what you think.