For the first time ever in Aotearoa, we’ve measured the real economic contribution of Kiwi sole traders – and our numbers show they’re punching above their weight.
Hnry has partnered with Simplicity Research Hub to deliver the inaugural GDP from Self-Employment report, the first of its kind to report on sole trader output in real economic terms.
Our findings prove what we at Hnry have always known – that sole trader businesses are unique in terms of their needs and their output. Yet despite being one of the most productive business types in the economy, they’ve generally been lumped in with the broader “small business” sector, and as a result have been both undercounted and underserved.
“Despite their outsized contribution, sole traders are still being left behind when it comes to government policy,” says James Fuller, CEO and Co-Founder of Hnry. “That’s why we teamed up with Simplicity for this report – we’re committed to changing that.”
Here are three key takeaways from the research:
The sole trader economy
In the year to March 2026, sole traders generated approximately $78 billion of economic output – around 17% of total New Zealand GDP. In the March 2026 quarter alone, that contribution reached $20.6 billion on a seasonally adjusted basis, with sole traders’ share of the economy climbing to 17.9%.
In other words, roughly one in six dollars generated in Aotearoa right now is being generated by someone working for themselves.
More importantly, they’re one of the fastest-growing parts of the overall economy. Over the 15 years from 2011 to 2026, sole trader real GDP grew at a compound annual rate of 3.6%, compared to 2.9% for the total economy. That’s 1.2x faster growth than the broader economy in real terms, sustained over a decade and a half.
Present in every industry
A common assumption is that self-employment is mostly white-collar, project-based work. The data tells a different story. Of the 17 industry classifications tracked, sole traders contribute at least 10% of total output in ten of them.
Some of the standout figures:
- Primary industries (agriculture, forestry, fishing and mining): 20% of sector output
- Arts and recreation services: 28% — more than one in four dollars of creative and cultural output in Aotearoa.
- Rental, hiring and real estate services: 72% of industry output
More exposed to economic swings than the wage economy
The report also confirms something sole traders live with every day: when the economy moves, they feel it first and hardest. The variability in self-employed GDP – measured as the standard deviation of quarterly changes since COVID – is nearly nine times that of the total economy.
That volatility comes down to structure, not performance. A sole trader’s income is directly tied to client demand in a way an employee’s salary isn’t. When a business defers a project, cancels a contract, or tightens its budget, that decision hits a sole trader’s bottom line the same week – often with no notice period and no severance to cushion it.
About Hnry
Hnry is an award-winning tax app and service. For just 1% +GST of your self-employed income, capped at $1,500 +GST a year, Hnry will calculate and pay all your taxes, levies and whatnot for you, including:
We also file your income tax and GST returns for you – it’s all part of the service.
Basically, we make earning self-employed income easy by taking care of all your tax admin. Join Hnry today, and never think about tax again!