These are the findings of a report 'Who creates the jobs in Thames-Coromandel District? New or existing businesses?' which has just been released this week. Authored by economist Benje Patterson, and commissioned by our Council, the report reveals new businesses have made a higher contribution to jobs growth over the last 15 years. It highlights economic development’s twin roles of business attraction and building up the resilience of existing enterprises are both important for job creation. New businesses generate a steady stream of jobs, but these gains can be quickly eroded when existing businesses backpedal. "New businesses being established on the Coromandel also makes our district vibrant and diverse," says Thames-Coromandel District Mayor Sandra Goudie. "But we also can't forget the amount existing businesses contribute. That's why our Council has an economic development team to work with fledgling and mature busineses to make sure everyone is doing the best they can in whatever line they are working in - for themselves and their employees, customers and the contribution this has to our district as a whole," Mayor Sandra says. Report summary: The demographics of Thames-Coromandel businesses • The total number of businesses across Thames-Coromandel District in 2019 was 4,350. • From 2013 to 2019, new businesses added 10.4% to the District’s business stock each year, while business ‘deaths’ over the same period, remained steady at 9.4% of existing businesses failing each year. • The average number of employees per business in Thames-Coromandel (counting businesses who employ staff only) is 7.7 employees, smaller than the national average of 12.1 employees. • On average over the 15 years to 2019, new businesses accounted for a 2.9 per cent annual contribution to total jobs growth, while existing businesses detracted 2.1 per cent annually. • New local businesses are more pivotal creators of jobs than in nearby areas. • The average Thames-Coromandel start-up business has 4.5 employees, close to the national average of 4.7 employees. • Local start-ups struggle to scale up, with existing businesses in Thames-Coromandel on average having just 3.2 additional employees than new entrants. • Industries where employment was expanding offered average returns on equity of 21.6 per cent, while industries where job numbers were contracting offered average returns of 16.5 per cent. • Over the five years to June 2018, new jobs’ pay increased by an average of 5.2 per cent annually, while pay for continuing jobs with existing employers increased by an average of 2.4 per cent. Read the full report on the right-hand side of this webpage. Note: This report draws data from the Statistics New Zealand’s Business Register (between 2005-2019), which does not cover self-employment or people who derive income as a contractor or from informal enterprises. The 2013 Census showed that 23 per cent of people in paid work in Thames-Coromandel were self-employed, compared to 12 per cent nationally. Estimates from Infometrics showed that total employment in the district, including jobs in both businesses and the self-employed, was 12,726 jobs in 2018.