Learning to drive an SME in New Zealand : insights from a study of liquidators' reports

Small-medium sized enterprises (SMEs) provide employment and financial support for a large percentage of the global working population. In New Zealand 99% of entities closed annually are SMEs. The research examines a sample of liquidators’ reports and finds that these closures are typically due to a lack of working capital, operational and strategic management skills. It also finds that within New Zealand’s close-knit business community SMEs are acutely vulnerable to disruptions in personal/business relationships and the owner’s emotional bond to the organisation. Finally several advisory notes are developed from the insights to assist those engaged within the SME sector.