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.
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.
DAVID SHEARER to the Prime Minister: Is it still a fundamental purpose of his Government to narrow the wage gap between New Zealand and Australia, and to grow local wages in New Zealand?
TODD McCLAY to the Minister of Finance: What recent reports has he received on the economy?
Hon DAVID PARKER to the Minister of Finance: In dollar terms, what is the shortfall in the tax-take for the nine months to March revealed in yesterday’s Financial Statements compared to October’s pre-election update?
Dr RUSSEL NORMAN to the Minister of Finance: How much has been raised to date by the Earthquake Kiwi Bonds and, at this rate, how many years will it take to cover the Government’s estimated $5.5 billion liability resulting from the Canterbury earthquakes?
Hon TAU HENARE to the Minister for Social Development: How will Budget 2012 provide greater support for young people most at risk of long-term welfare dependency?
Hon CLAYTON COSGROVE to the Minister for State Owned Enterprises: Does he stand by the Prime Minister’s statement regarding asset sales that “We are not going to do anything tricky there”?
Dr JIAN YANG to the Associate Minister of Health: How is the Government expanding its programme to reduce rheumatic fever in vulnerable communities?
Hon ANNETTE KING to the Minister of Housing: Does he stand by all his comments regarding housing?
JULIE ANNE GENTER to the Minister of Transport: What is the plan to pay for the Government’s transport expenditure given that the Ministry of Transport’s Briefing to the Incoming Minister warns of a funding shortfall of $4.9 billion if high oil prices and low GDP growth continue?
MARK MITCHELL to the Minister for Economic Development: How is the Government improving value for money in its procurement of services for the public sector?
DARIEN FENTON to the Minister of Labour: Does she stand by her statement that “I do not want to see unnecessary change for change’s sake. Rather I am looking to put in place pragmatic solutions as we implement our manifesto commitments and let employers, employees and business focus on what they do best.”?
Rt Hon WINSTON PETERS to the Prime Minister: Does he still have confidence in the Minister for Social Development and the Associate Ministers for Social Development; if so, why?
