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Business Demography NACE Rev 2

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Business Demography NACE Rev 2 Powered By Docstoc
					Overview of CSO Business
  Demography release
Workshop on Business Demography
     and Job Churn statistics
   Dublin Castle, May 12th 2011
          Jillian Delaney
  What is Business Demography?
• Numbers of active enterprises
• Business employment figures
• Changes in enterprise population:
  – Newly birthed enterprises
  – Ceased enterprises
  – Enterprise survivals
• Internationally comparable methodology
   Business Demography sources and
         available time periods
• Business Registers: aim to cover the whole
  population of enterprises
• Administrative data
• Better coverage of very small enterprises than
  traditional survey methods
• Data is available for the following years:
  – 2006
  – 2007
  – 2008
• Data for 2009 will be published in June 2011
          Where to find data?
• On the CSO website, http://www.cso.ie/, click
  Databases on the top menu bar
• Select the first link, StatBank (CSO Main Data
  Dissemination Service)
• Under the Business Sectors area, choose either
  Construction, Industry or Services, and click
  Business Demography
• Under this, the Business Demography NACE Rev
  2 link gives you the new release
StatBank link on www.cso.ie
Business Demography tables
          NACE Rev 2 Sectors Covered
•   B - Mining and quarrying
•   C - Manufacturing
•   D - Electricity, gas, steam and air conditioning supply
•   E - Water supply; sewerage, waste management and remediation activities
•   F - Construction
•   G - Wholesale and retail trade; repair of motor vehicles and motorcycles
•   H - Transportation and storage
•   I - Accommodation and food service activities
•   J - Information and communication
•   K* - Financial and insurance activities
•   L - Real estate activities
•   M - Professional, scientific and technical activities
•   N - Administrative and support service activities

    *NACE code 64.20 Activities of holding companies is excluded from sector K
       NACE Rev 2 Sectors Excluded
•   Agriculture (sector A)
•   Public Administration (sector O)
•   Education (sector P)
•   Health (sector Q)
•   Arts, Entertainment, Recreation (sector R)
•   Other Service Activities (sector S)
•   Activities of Households (sector T)
•   Extraterritorial Bodies (sector U)

The CSO Business Register is currently being expanded to include
  the sectors in bold
          The Data

Active Enterprises and Employment
            Active Enterprises
• How many businesses are there in Ireland?
• How many enterprises are there in the “Mining
  and Quarrying” sector?
• How many advertising agencies are there in
  Ireland?
• How many real estate enterprises are there in
  Ireland?
• How many companies are in Ireland?
• How many companies are in retail?
• How many sole traders are there in retail?
  Active enterprises – size and county
              breakdown
• How many SMEs or small and medium enterprises are
  there?
   –   Micro enterprises: under 10 persons engaged
   –   Small enterprises: under 50 persons engaged
   –   Medium enterprises: under 250 persons engaged
   –   Large enterprises: 250+ persons engaged
• How many small and medium enterprises are in Cork?
• How many real estate enterprises are there in Dublin?
• How many construction enterprises are in Donegal?
    Active enterprises: employment
•   How many persons engaged in Ireland?
•   How many employees?
•   How many people work in retail?
•   How many of these are in companies and how
    many sole traders?
Changes in Enterprise Population

      Births, Deaths and Survivals
 Changes in Enterprise Population
• Numbers of enterprises:
  – Numbers of newly birthed enterprises
  – Numbers of ceased enterprises
  – Numbers of surviving enterprises
• Employment data:
  – Employment in newly birthed enterprises
  – Employment in ceased enterprises
  – Employment in surviving enterprises
      Definition of Enterprise Births
A count of the number of births of enterprises registered to the
    population concerned in the business register corrected for
    errors.
A birth amounts to the creation of a combination of production
    factors with the restriction that no other enterprises are
    involved in the event.
Births do not include entries into the population due to: mergers,
    break-ups, split-off or restructuring of a set of enterprises.
It does not include entries into a sub-population resulting only
    from a change of activity.

[Commission Regulation (EC) No 2700/98 of 17 December 1998 concerning
   the definitions of characteristics for structural business statistics)]
  Enterprise Birth Rate, 2006
NACE Rev 2   Active Enterprises Enterprise Births     Birth Rate
Sector       (Number)             (Number)            (Percentage)
B-N, -642               201,461              16,696                   8.29
B-E                      13,974                 861                   6.16
B                              ..                  ..
C                        12,765                 764                   5.99
D                              ..                  ..
E                            716                  59                  8.24
F                        58,454               5,717                   9.78
G-N, -642               129,033              10,117                   7.84
G                        42,280               2,553                   6.04
H                        11,095                 822                   7.41
I                        15,724               1,060                   6.74
J                         8,958                 930                  10.38
K-642                     3,956                 390                   9.86
L                         9,030               1,209                  13.39
M                        27,127               2,293                   8.45
N                        10,863                 860                   7.92
  Enterprise Birth Rate, 2007
NACE Rev 2   Active Enterprises Enterprise Births    Birth Rate
Sector       (Number)             (Number)           (Percentage)
B-N, -642               207,736              13,461                6.48
B-E                      14,354                 672                4.68
B                              ..                 16
C                        13,027                 576                4.42
D                              ..                 26
E                            772                  54               6.99
F                        59,124               3,824                6.47
G-N, -642               134,258               8,964                6.68
G                        43,205               2,202                5.10
H                        11,384                 658                5.78
I                        15,794                 913                5.78
J                         9,488                 879                9.26
K-642                     4,554                 487               10.69
L                         9,617                 958                9.96
M                        28,505               1,930                6.77
N                        11,711                 937                8.00
    Enterprise Birth Rate, 2008
NACE Rev 2   Active Enterprises Enterprise Births    Birth Rate
Sector       (Number)            (Number)            (Percentage)
B-N, -642               203,083              11,954                5.89
B-E                      14,265                 648                4.54
B                            385                  21               5.45
C                        12,886                 540                4.19
D                            209                  33              15.79
E                            785                  53               6.75
F                        53,893               2,489                4.62
G-N, -642               134,925               8,816                6.53
G                        43,205               2,298                5.32
H                        11,069                 583                5.27
I                        15,987               1,115                6.97
J                         9,682                 864                8.92
K-642                     4,591                 325                7.08
L                         9,274                 700                7.55
M                        29,283               2,133                7.28
N                        11,834                 799                6.75
              Enterprise Birth Rate –
            International Comparison

        Eurostat Business Demography page:


http://epp.eurostat.ec.europa.eu/portal/page/portal/european_business/spe
                     cial_sbs_topics/business_demography
Enterprise Birth Rate,
EU average, 2006 (%)

                                                  0   5   10   15

                          Energy (Section E)

            Business activities (Section K) (2)

                Financial services (Section J)

                     Construction (Section F)

         BUSINESS ECONOMY (Sections C to…

             Hotels & restaurants (Section H)

               Distributive trades (Section G)

               Transport & comm. (Section I)

                   Manufacturing (Section D)

              Mining & quarrying (Section C)
   Enterprise Birth Rate,
business economy, 2006 (%)

       20




       15




       10




       5




       0
            EE RO PT DK UK BG LU ES DE LV NL EU FR SI CZ HU AT FI SK IT CY SE MT CH
                   Enterprise Deaths
A count of the number of deaths of enterprises registered to the
    population concerned in the business register corrected for
    errors.
A death amounts to the dissolution of a combination of
    production factors with the restriction that no other
    enterprises are involved in the event.
Deaths do not include exits from the population due to mergers,
    take-overs, breakups and restructuring of a set of enterprises.
It does not include exits from a sub-population resulting only
    from a change of activity.

[Commission Regulation (EC) No 2700/98 of 17 December 1998 concerning
   the definitions of characteristics for structural business statistics)]
              Enterprise Deaths
•   How many enterprises ceased activity in 2008?
•   What sectors had the most ceased enterprises?
•   What is the death rate in each sector?
•   How many people were employed in ceased
    enterprises?
Enterprise Death Rate, 2008

               Active Enterprises Enterprise Deaths Death Rate
               (Number)            (Number)          (Percentage)
     B-N, -642            203,083            14,344            7.06
     B-E                   14,265               715            5.01
     B                         385                ..
     C                     12,886               649            5.04
     D                         209                ..
     E                         785               38            4.84
     F                     53,893             6,613           12.27
     G-N, -642            134,925             7,016            5.20
     G                     43,205             2,008            4.65
     H                     11,069               620            5.60
     I                     15,987               865            5.41
     J                      9,682               590            6.09
     K-642                  4,591               188            4.09
     L                      9,274               570            6.15
     M                     29,283             1,445            4.93
     N                     11,834               731            6.18
                 Enterprise survivals
The survival of an enterprise is defined in the following way:

• An enterprise born in year xx or having survived to year xx
  from a previous year is considered to have survived in year
  xx+1 if it is active in terms of turnover and/or employment
  in any part of year xx+1 (= survival without changes).
• An enterprise is also considered to have survived if the
  linked legal unit(s) have ceased to be active, but their
  activity has been taken over by a new legal unit set up
  specifically to take over the factors of production of that
  enterprise (= survival by take-over).

[Eurostat-OECD Manual on Business Demography Statistics]
    Enterprise survival rate, business
             economy, 2006
(% of enterprises born two years before who survived)

              100




               75




               50




               25




               0
                    SE   SI   UK   RO   FR   ES   IT   LU   EU   NL   LV   SK   FI   EE   HU   CZ   PT   CH
     Enterprise Survival in Ireland
• One and two year survival rates available for 2008
   – Of the new births in 2006, how many were still active in
     2008?
   – Of the new births in 2007, how many were still active in
     2008?
• Two year survival rate for business economy in 2008
  was approximately 80%
• Data on employment in year of birth and employment
  in survival year also available
• New births will be followed over 5 years after starting
  up
                               One year survival, 2008

Enterprise Survival NACE Rev 2 by Year, Employment Size, Activity and
statistical indicator
                                                                                            Enterprises Persons Engaged Persons Engaged
                                                                                            Birthed in     in 2007 in        in 2008 in
                                                                                            2007 and       Enterprises       Enterprises
                                                                                            Survived to Birthed in 2007 Birthed in 2007
                                                                                            2008           that Survived to that Survived to
                                                                                            (Number)       2008 (Number) 2008 (Number)
2008 Business economy excluding activities of holding companies (B to N,-642)                        11579             12792             22321
     Industry (B to E)                                                                                 576               555              1011
     Mining and quarrying (B)                                                                           13                10                29
     Manufacturing (C)                                                                                 495               504               867
     Electricity, gas, steam and air conditioning supply (D)                                            20                 3                 5
     Water supply; sewerage, waste management and remediation activities (E)                            48                38               109
     Construction (F)                                                                                 3215              3442              5007
     Business economy services excluding activities of holding companies (G to N,-642)                7788              8794             16303
     Wholesale and retail trade; repair of motor vehicles and motorcycles (G)                         1930              2137              4310
     Transportation and storage (H)                                                                    560               672               998
     Accommodation and food service activities (I)                                                     787              1883              4066
     Information and communication (J)                                                                 785               721              1504
     Financial and insurance activities excluding activities of holding companies (K-642)              413               249               587
     Real estate activities (L)                                                                        767               728               901
     Professional, scientific and technical activities (M)                                            1722              1619              2584
     Administrative and support service activities (N)                                                 824               785              1354
                        Two year survival, 2008
Enterprise Survival NACE Rev 2 by Year, Employment Size, Activity and
statistical indicator
                                                                                          Enterprises Persons Engaged Persons Engaged
                                                                                          Birthed in     in 2006 in         in 2008 in
                                                                                          2006 and       Enterprises        Enterprises
                                                                                          Survived to Birthed in 2006       Birthed in 2006
                                                                                          2008           that Survived to that Survived to
                                                                                          (Number)       2008 (Number)      2008 (Number)
2008 Business economy excluding activities of holding companies (B to N,-642)                      13524             14391               32006
     Industry (B to E)                                                                               723                671               1729
     Mining and quarrying (B)                                                                         21                 15                  67
     Manufacturing (C)                                                                               639                609               1478
     Electricity, gas, steam and air conditioning supply (D)                                          13                  4                  14
     Water supply; sewerage, waste management and remediation activities (E)                          50                 43                 171
     Construction (F)                                                                               4501              4525                8495
     Business economy services excluding activities of holding companies (G to N,-642)              8300              9195               21781
     Wholesale and retail trade; repair of motor vehicles and motorcycles (G)                       2124              2460                6150
     Transportation and storage (H)                                                                  653                669               1229
     Accommodation and food service activities (I)                                                   851              1779                5278
     Information and communication (J)                                                               759                660               1573
     Financial and insurance activities excluding activities of holding companies (K-642)            313                300                 977
     Real estate activities (L)                                                                      927                877               1332
     Professional, scientific and technical activities (M)                                          1951              1633                3356
     Administrative and support service activities (N)                                               722                817               1885
Business Demography
    Methodology
 Overview of some issues
      Use of administrative data
• The CSO’s Business Register is constructed from
  data provided by the Revenue Commissioners
  and the Companies Registrations Office
• Enterprises that have either employment or
  turnover from Revenue sources during the
  reference year are included
• This results in increased coverage of very small
  enterprises compared to survey based releases
• Active Revenue registrations are counted as
  active enterprises
     Counting active enterprises
• An enterprise does not always refer to the
  same type of unit
• E.g. if a business has one legal unit (Revenue
  registration), but several local units (branches)
  there will be one enterprise
• But if one local unit is owned by one legal
  unit, there is one enterprise
Counting active enterprises - example
• Schools that employ staff in their own right
  are counted as separate enterprises, but those
  that employ staff through a governing body
  are counted as local units
• So numbers of enterprises extracted using
  business demography method doesn’t
  correspond to actual number of schools
     Births, deaths and survivals
• Difficult to exclude “births” that are only due
  to enterprise registering new employer
  registration with Revenue due to
  administrative changes
• Use data matching, manual checking of
  samples
• Can be difficult to find information, especially
  for very small potential births
• Similar issues with “deaths”
              Enterprise groups
• Enterprise groups are formed by separate enterprises
  linked by share ownership
• Often all employees of group will be registered
  against one PREM number
• This PREM number will be linked to one enterprise,
  with one NACE code, so all group employment is
  counted against this activity
• If the enterprise group conducts different activities,
  an adjustments needs to be made to spread the
  employment across the activities
                   Timeliness
Data for the year 2010 will be available in mid 2012
• 2010 data depends on employer P35 and tax returns
  (VAT, Corporation Tax and Income Tax)
• These are filed during 2011, and are not all fully
  available to the CSO until the spring of 2012
• The first Revenue data available to the CSO is for
  2005, so first full set of data is available for 2006
                Future plans
• Early estimates
• Employer Business Demography
• High Growth Enterprises
• Gazelles
• Employment data by county
• Regional breakdown for births, deaths and
  survivals
• Entrepreneurs breakdown by gender, age,
  nationality
                 Conclusion
• Business Demography provides a large
  amount of detailed data due to the use of
  administrative sources
• Quality issues exist with using this data to
  report on what is happening in the real
  business population
• Enormous potential exists for analysing the
  structure and dynamics of the enterprise
  population

				
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