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Application using AES data High Growth Firms Project

Application using AES data High Growth Firms Project. Background on High Growth Firms Project. Why do research on high growth firms? The Government, through NZT&E, offers a range of business development services to firms with high-growth potential

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Application using AES data High Growth Firms Project

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  1. Application using AES dataHigh Growth Firms Project

  2. Background on High Growth Firms Project Why do research on high growth firms? • The Government, through NZT&E, offers a range of business development services to firms with high-growth potential • Rapidly growing firms have the potential to make an important contribution to economic development • Add to the nascent NZ-specific literature on high-growth firms Methodology • Case Study, Historiographic

  3. Why use AES data? • To better understand the distribution of enterprises according to various measures of growth • As a more objective basis for sample selection • As a by-product, to better understand the utility of AES data

  4. What have we done with AES data? • Designed a Sampling Frame • Postal units in SNZ’s Annual Enterprise Survey • Must have been alive since June 1998 • Data must be available for 1990 -2002 inclusive • Minimum size in 1999 of 5 FTEs and $750,000 of Sales • Maximum size in 2002 of $150 million of Sales • Various industry exclusions

  5. What have we done with AES data? (contd) • Improved our feel for the distribution of enterprises • Produced sample statistics by decile • Produced tables of demographic characteristics by decile • Analysis (limited) of transitions (e.g. between size categories) • Cross-tabulations showing relationships between decile rankings for different combinations of growth measures

  6. What have we done with AES data? (contd) • Examples (not to be cited): • Median firm in the top decile by turnover growth recorded an approximate increase in turnover of 150% over the period 1999-2002 compared with an increase of around 20% for the median firm in our population • The distribution of firms when ranked by turnover growth is skewed at both ends (i.e. it has long tails) as evidenced by intra-decile inter-quartile ranges that increase with the distance from the middle of the distribution • Over the period 1999-2002, firms in the Agriculture (excluding A01) sector are over-represented in the top performing decile

  7. What have we done with AES data? (contd) • Used as the basis for sample selection • Letters going out to 400 firms inviting them to participate in study • Firms selected from top decile (300-320) and near middle of the distribution (around 80) • Depending on the number of consenting firms, will use population distributional characteristics to achieve good coverage

  8. Limitations of AES data-set • Tax units not currently contactable but available for analysis purposes • Data quality is not uniformly good • (e.g. FTEs for Agriculture units not updated on the business frame, overseas activity indicator not frequently updated, balance sheet items often imputed) • Discontinuities in the longitudinal data-set • Issues with recording firm births and deaths

  9. Other potential uses of AES data • Linking Business Practices Survey data to firm performance data from AES • Evaluation of programmes delivered by NZTE • Measuring economic performance of specific sectors/regions

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