This participant-observation study explores the process of gathering and evaluating both financial and non-financial information and communication and transfer of that information within a medium-size Electrical Company in Christchurch, New Zealand. The previous literature has established the importance and the main characteristics of small and medium enterprises (SMEs), mainly studying manufacturing companies. However, there has been little research done in New Zealand on the overall communication process and the financial and non-financial information usage in a small-medium enterprise. Face-to-face interviews were carried out with all the office employees and two partners, along with a ten month participant-observation in the Electrical Company in order to understand how financial and non-financial information is communicated and processed in an SME. Also, research in an SME that has overcome the 2008 economic depression and several major earthquakes allows a deep understanding of lessons learned and what is valued by the Electrical Company. The research has found characteristics of this SME similar to those that have been mentioned in previous literature. However, the partners of the Electrical Company understand the importance of financial management and use financial information extensively to ensure the business expenses are under control. Moreover, the partners use more than just financial information to manage the company. They gather non-financial information through talking to their accountant, their customers and people in the same industry and they keenly follow the news on the rebuilding of Christchurch.
This participant-observation study explores the process of gathering and evaluating both financial and non-financial information and communication and transfer of that information within a medium-sized electrical service company in Christchurch, New Zealand. The previous literature has established the importance and the main characteristics of small and medium enterprises, mainly studying manufacturing companies. However, there has been little research done in New Zealand on the overall communication process and the financial and non-financial information usage in a small-medium enterprise. The Electrical Company has a flat structure which allows flexibility. The two owners understand the importance of financial management and use financial information extensively to ensure the business expenses are under control. The owners also gather and use non-financial information through talking to their accountant, their customers and people in the same industry and they keenly follow the news on the rebuilding of Christchurch after the recent earthquakes.
The 4 September, 22 February, and 13 June earthquakes experienced in Canterbury, New Zealand would have been significant events individually. Together they present a complex and unprecedented challenge for Canterbury and New Zealand. The repetitive and protracted nature of these events has caused widespread building and infrastructure damage, strained organisations’ financial and human resources and challenged insurer and investor confidence. The impact of the earthquakes was even more damaging coming in the wake of the worst worldwide recession since the great depression of the 1930s. However, where there is disruption there is also opportunity. Businesses and other organisations will drive the physical, economic and social recovery of Canterbury, which will be a dynamic and long-term undertaking. Ongoing monitoring of the impacts, challenges and developments during the recovery is critical to maintaining momentum and making effective mid-course adjustments. This report provides a synthesis of research carried out by the Resilient Organisations (ResOrgs) Research Programme1 at the University of Canterbury and Recover Canterbury in collaboration with Opus Central Laboratories (part of Opus International Consultants). The report includes discussions on the general state of the economy as well as data from three surveys (two conducted by ResOrgs and one by Recover Canterbury) on business impacts of the earthquakes, population movements and related economic recovery issues. This research and report offers two primary benefits:
