Business Operations Survey: 2006

Technical notes

Survey background

The New Zealand Government has a range of initiatives aimed at increasing New Zealand's economic growth rate above the OECD average and sustaining this higher growth performance over a number of years. In order for New Zealand’s economic performance to be measured against these aims, a large range of data on a variety of measures needs to be collected.

Because of this increase, Statistics New Zealand has developed an integrated, modular survey – the Business Operations Survey – as a way of collecting the required information while minimising the reporting load for New Zealand businesses. The survey has been designed to include up to three ‘modules’ and has been run annually since 2005.

The survey has been developed by Statistics NZ in conjunction with the Ministry of Economic Development (MED) and the Department of Labour and is carried out annually by Statistics NZ.

The main objective of the survey is to collect information on the operations of New Zealand businesses in order to quantify business behaviour, capacity and performance. In addition, each module in the survey has its own specific objectives. The modules included in the Business Operations Survey 2006 and their objectives are listed below.

Module A: Business Operations Module

The objective of this module is to provide a longitudinal series of information relating to business performance. The information required can be grouped into two main categories:

  • financial performance measures
  • business environment measures.

The purpose of collecting financial measures of business performance is to measure and monitor business performance, and to relate the impact of potential enablers on this performance. An important element of these financial measures is their longitudinal dimension, which will enable changes over time to be analysed. This will assist in the development of models aimed at investigating causal relationships. As well as traditional measures of performance such as turnover and profitability, there is also a desire to collect information on such areas as export intensity. The purpose of collecting environmental information is to analyse any relationships between the environment in which a business operates and the results it achieves.

Module B: Information and Communication Technology (ICT) Module

The objective of this module is to provide a core set of comprehensive, official statistics on the present state of business ICT utilisation, constraints that businesses face when implementing ICT and areas where improvements and efficiency gains can be made.

Module C: Employment Practices Module

The objective of this module is to provide information on the characteristics of business and management practice in New Zealand, including:

  • the extent to which employment practices enable better firm performance
  • the factors that lead to the adoption of employment practices.

Data collection

The Business Operations Survey 2006 was a postal survey. Initial contact was made to key and/or complex businesses in the survey by telephone, before the mail-out, to determine the appropriate person(s) within the business to whom the survey questions could be directed. For all other businesses, the survey form was addressed to the managing director. The survey was posted out in August 2006 and collected information for the last financial year for which the business had data available at that point.

Target population

The target population for the Business Operations Survey 2006 was live enterprise units on Statistics NZ’s Business Frame that at the population selection date:

  • were economically significant enterprises (those that have an annual GST turnover figure of greater than $30,000)
  • had six or more employees
  • had been operating for one year or more
  • were classified to Australian and New Zealand Standard Industrial Classification – New Zealand Version 1996 (ANZSIC96) codes listed as ‘in scope’ in List 1 below
  • were private enterprises as defined by New Zealand Institutional Sector 1996 Classification (NZISC96) listed in List 2 below.

An enterprise is defined as a business or service entity operating in New Zealand, such as a company, partnership, trust, government department or agency, state-owned enterprise, university or self-employed individual.

The final estimated population size for the survey was 35,436 enterprises.

List 1 – ANZSIC96 Codes in Scope
In scope

ANZSIC96 code – description
A – Agriculture, Forestry and Fishing
B – Mining and Quarrying
C – Manufacturing
D – Electricity, Gas and Water Supply
E – Construction
F – Wholesale Trade
G – Retail Trade
H – Accommodation, Cafes and Restaurants
I – Transport and Storage
J – Communication Services
K – Finance and Insurance
L – Property and Business Services
N – Education
O – Health and Community Services
P91 – Motion Picture, Radio and Television Services
P93 – Sport and Recreation

Out of scope
M – Government Administration and Defence
P92 – Libraries, Museums and the Arts
Q – Personal and Other Services.

List 2 – NZISC96 Codes in Scope
In scope
NZISC96 code – description
1111 – Private Corporate Producer Enterprises
1121 – Private Non-Corporate Producer Enterprises
1211 – Producer Boards
1311 – Central Government Enterprises
2211 – Private Registered Banks
2221 – Private Other Broad Money (M3) Depository Organisations
2291 – Private Other Depository Organisations nec
2311 – Private Other Financial Organisations Excluding Insurance and Pension Funds
2411 – Private Insurance and Pension Funds.

Out of scope
1321 – Local Government Enterprises
21 – Central Bank
2212, 2213, 2222, 2223, 2292, 2293, 2312, 2313, 2412, 2413 – Central and Local Government Financial Intermediaries
3 – General Government
4 – Private Non-Profit Organisations Serving Households
5 – Households
6 – Rest of World

Sample design

The sample design was a two-level stratification according to ANZSIC industry and employment size groups. This information was obtained using enterprise ANZSIC industry and employment information from Statistics NZ's Business Frame.

The first level of stratification was 33 ANZSIC industry groupings. Within each of the ANZSIC groups there is a further stratification by employment size group. The four employment size groups used in the sample design are:

  • 6–19 employees (small)
  • 20–29 employees (medium 1)
  • 30–49 employees (medium 2)
  • 50 or more employees (large).

The two medium groups have been amalgamated, and the large size group further broken down for this publication, as these businesses were of particular interest for some of the results.

Measurement errors

The Business Operations Survey 2006 results are subject to measurement errors, including both non-sample and sample errors. These errors should be considered when analysing the results from the survey.

Non-sample errors

Non-sample errors include mistakes by respondents when completing questionnaires, variation in the respondents’ interpretation of the questions asked, and errors made during the processing of the data. In addition, the survey applied imputation methodologies to cope with non-respondents. Statistics NZ adopts procedures to minimise these types of error, but they may still occur and are not quantifiable.

Given the nature of the data collected, there are limitations on the level of accuracy that can be expected from the survey. Businesses’ records may not be kept in the form required for the survey and some estimation by the respondent may be required.

Sample errors

Total revenue was used as the numeric design variable for the survey. The sampling error on the total revenue figure has been measured at 5.5 percent at the 95 percent confidence level.

Response rate

The Business Operations Survey 2006 targeted an 80 percent response rate. The survey achieved an actual response rate of 81.7 percent, which represented 6,066 businesses.

Non-response and imputation

Unit non-response

Unit (or complete) non-response occurs when units in the sample do not return the questionnaire. The initial selection weight of the remaining units in the stratum was adjusted to account for the unit non-response (no item non-response imputation would occur for the units that did not return the questionnaire).

Item non-response

Item (or partial) non-response is when units return the questionnaire but some questions are not answered. No item non-response imputation was carried out for units that did not answer 60 percent or more of the questions they were required to answer (based on questionnaire routing rules). The respondents who did not meet this criterion were classified as unit non-responses and the weights were adjusted accordingly.

Imputation of numeric variables

The imputation methods used were weighted mean imputation and donor imputation.

Using the weighted mean method, a weighted mean was calculated from linked responding units for each numeric linecode within each imputation cell. Non-responding units were then imputed with the weighted mean for their imputation cell. Weighted mean imputation was used to impute totals.

Donor imputation randomly selected a donor from within each imputation cell. The non-respondent was then imputed with the value(s) from the donor. Donor imputation was used to impute components and percentages so that the distribution was maintained.

Imputation of categoric questions

For categoric imputation the method used was nearest neighbour imputation, which involved finding a donor with the most similar responses. The donor supplied responses for all categoric variables requiring imputation. If the donor unit did not respond to any of the variables requiring a response, then we chose the next best donor to supply this information. This was continued until all the variables had a response.

Definitions

ANZSIC: Australian and New Zealand Standard Industrial Classification System – New Zealand Version 1996.
Business Frame: A register of all businesses operating in New Zealand.
Employees: The number of employees is defined by an enterprise's rolling mean employment (RME) count. RME is a twelve-month moving average of the monthly employment count (EC) figure. The EC is obtained from taxation data.
Enterprise: A business or service entity operating in New Zealand. It can be a company, partnership, trust, estate, incorporated society, producer board, local or central government organisation, voluntary organisation or self-employed individual.
Goods and Services Tax (GST): Respondents are asked to exclude GST if possible in the financial figures provided in the questionnaire. If they did not, Statistics NZ takes out GST to make all enterprises comparable.
Last financial year: For the purposes of this survey, this refers to the last financial year for which the business had results available as at August 2006, as entered on the questionnaire.
Information and Communication Technology (ICT): this refers to the electronic technologies for collecting, processing or transmitting information which can be in the form of voice, images or data. Examples include computers, software, the Internet, telecommunications, networks and new developments such as video conferencing and GPS (global positioning system).

More information

For more information, follow the link from the Technical notes of this release on the Statistics NZ website.

Copyright

Information obtained from Statistics NZ may be freely used, reproduced, or quoted unless otherwise specified. In all cases Statistics NZ must be acknowledged as the source.

Liability

While care has been used in processing, analysing and extracting information, Statistics NZ gives no warranty that the information supplied is free from error. Statistics NZ shall not be liable for any loss suffered through the use, directly or indirectly, of any information, product or service.

Timing

Timed statistical releases are delivered using postal and electronic services provided by third parties. Delivery of these releases may be delayed by circumstances outside the control of Statistics NZ. Statistics NZ accepts no responsibility for any such delays.

Next release ...

A report on business practices and performance will be released in August 2007.