Business Register
Background and Overview
Marietha Gouws
Executive Manager: Business Register
Seminar on Developing a programme for the
implementation of the
2008 SNA and supporting statistics
17-19 October 2012
Pretoria, South Africa
1
Outline
 Background
 Objectives of the division
 Divisional organogram
 Summary of the maintenance process
 Internal Stakeholders
 Divisional component activities
•
Business Register Statistics
2
Background
 Pre 1999 the organisation had a Business Address Register (BAR)
 In 1999 a decision based on international best practise and
recommendations from ABS was made to use administrative
sources in order to create a new Business Sampling Frame (BSF)
 Agreements for administrative data were made with the Department
of Trade and Industry (the dti), Department of Labour (DoL) and
South African Revenue Service (SARS)
 Current challenges faced:
• Resource constrains: led to infrequent updating of information and therefore not
reflecting the situation on the ground accurately
• Lack of single business number/ unique identifier: extremely difficult to match
the various administrative databases
3
Background
 By matching the various ‘tax types” of the same business into a
cluster we ensure that only businesses that matched are created in
the Integrated Business Register (IBR)
 The information on the IBR is then used to create an administrative
sourced BSF system and a derived statistical sourced BSF that will
serve as a sampling frame for economic series
 Maintenance rules were designed to meet resource constrains
 Rules work for most of the businesses on the BSF
 However, businesses with many locations and different activities are
the exceptions to the rules
Slide 9
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Objectives of the division
 The first objective of the Business Register otherwise referred to as
the Business Sampling Frame (BSF) is to serve as a common
sampling frame for all survey areas involved in the production of
economic statistics.
 Secondly the BSF can serve as a source for register-based
statistics.
5
Divisional organogram
1 x Executive Manager
1 x Personal Assistant
2 x Office Support
Summary:
3 components
73 staff members
1 x Manager
Large Business
Unit
1 x Manager
Operations and
Maintenance
1 x Deputy Manager:
BRA (Profiling)
1 x Deputy Manager:
BRA (VAT & SAF
investigations)
4 x Senior Business
Register Analyst
12 x ABRA
2 x Senior Business
Register Analysts
1 x Manager
Quality
Improvement Unit
1 x Deputy Manager:
BRA (QIS
investigations)
1 x Deputy Manager:
BRA
(Classification)
1 x Deputy Manager:
BRA
(Development)
1 x Deputy Manager:
BRA (Analysis)
3 x Senior Business
Register Analyst
12 x JBRAs
1 x Senior Business
Register Analyst
4 x ABRQAs
2 x Principal Survey
Statistician
2 x Survey
Statisticians
4 x Survey
Statisticians
2 x Senior Business
Register Analyst
1 x JBRA
11 x ABRAs
6
Administrative sources
Source
Information
South African
Revenue Service
(SARS)
Income Tax (IT),
Value Added Tax (VAT),
Payroll taxes:
- Pay-as-you-earn (PAYE);
- Skills development level (SDL);
- Unemployment insurance fund (UIF)
Department of Trade
and Industry (the dti)
Companies and intellectual property
Commission (CIPC)
- Register of companies
Department of
Labour (DoL)
Unemployment Insurance Fund (UIF)
Registration data; Transaction data
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Business Register characteristics
 Comprehensiveness in coverage,
 Sufficiently classified per industry, and
 Usability of contact details.
In addition, such a register must be regularly maintained so that new
units are detected and added, while dead units are removed.
The accuracy of a business register, as a foundation of economic
statistics, allows results of surveys to mirror economic reality on the
ground as much as possible.
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Classifications
Standard Industrial Classification of all Economic Activities (SIC)
SIC
Description of the SIC
1
Agriculture, Hunting, Forestry and Fishing
2
Mining and Quarrying
3
Manufacturing
4
Electricity, gas and water supply
5
Construction
6
Trade Industries (61-Wholesale ,62 – Retail, 63 – Motor,
64 - Hotels and restaurants)
7
Transport, Storage and Communication
8
Financial intermediation
9
Community, social and personal services
9
Classifications
Classification of institutional sectors
Code
Description
S.1
Total economy
S.11
Non-financial corporations
S.12
Financial corporations
S.13
General government
S.14
Households
S.15
Non-profit institutions serving households
S.2
Rest of the world
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Statistical Unit Structure
1. Enterprise (EN) unit -
a legal unit or combination of legal
units that carry out production activities.
2. Kind-of-Activity (KAU) unit - is an enterprise unit or a
part of an enterprise unit involved in one or predominantly one kind of activity
on a 5-digit SIC level. Kind-of-activity unit is dependant on activity for its
survival.
3. Geographical (GEO) unit –
is an enterprise unit or part
of an enterprise unit involved in one or predominantly one kind of activity on a
5-digit SIC level at or from one location. At least one person must be
permanently employed at that location. A geographic unit is dependent on
activity, location and employment for its survival
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Enterprise characteristics
Size measures - required for stratification during sampling
•
Enterprise turnover
•
Number of employees
•
Hectares of land - agriculture
•
Salary/wages
•
Number of rooms - hotels
BR quality concerns
Classifications – required for sampling
•
Industry – economic activity
•
Ownership type
•
Institutional
Current BR maintenance
processes
12
Life Cycle status identification
Green cross – birthed
No cross – activated/reactivated
Blue cross – deactivated
Red cross – ceased
Slide 33
13
Summary of the maintenance process
the dti
CIPC
daily
monthly
IBR
st
1 Q Snapshot
and Frame
May
VAT
Investigations
SAF
Investigations
quarterly
2nd Q Snapshot
and Frame
Aug
3rd Q Snapshot
and Frame
Nov
4th Q Snapshot
and Frame (Final)
Feb
Profiling
Investigations
BSF
QIS
Investigations
Automatic
Updates
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Maintenance sources
 Value Added Tax (VAT)
Automatic
updates
Manual updates
(VAT investigation list)
 Other
Profiling
Survey area feedback
Annual improvement survey
Complex business
All economic surveys
Business Register
Slide 9
15
Internal stakeholders
Monthly
Quarterly
Annual/periodic
Manufacturing
(production & sales)
Quarterly Financial
Statistics (QFS)
Annual Financial
statistics (AFS)
Various trade sales
(wholesale, retail &
motor trade)
Quarterly
Large sample surveys
Employment Statistics
(QES)
Electricity generated
Food & beverages
Tourism &
accommodation
Land transport
16
Business Register
Operations and Maintenance
(Investigate VAT and Survey Area Feedback (SAF) queries)
17
Operations and Maintenance
This component is responsible for:
 Confirming that VAT investigations are dealt with preferably before
quarterly common frames are produced for the survey areas
 Ensuring accurate economic data is reported for large businesses
 Ensuring queries from survey areas are investigated
18
Business Register
Large Business Unit
(Profiling of large and complex businesses)
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Large Business Unit
This component is responsible for:
 Confirming the Enterprise Group structures as quickly as possible
and preferably before quarterly common frames are produced for the
survey areas
 Ensuring accurate economic data is reported for large businesses
and to personally manage Stats SA’s contact with businesses where
necessary
20
Profiling overview
 Profiling is ongoing and schedules are revised annually to detect
major structural changes within the Enterprise Groups (EGs)
 The scope of investigations include only South African registered
companies
 The turnaround time to complete a profile depends on the:
• Complexity of the EG
• Location of the accounting records (centralised/ decentralised)
• Respondents’ co-operation
 Current turnaround time to complete a profile is:
• 3 to 6 months for less complex EGs
• 7 months to 1 year for medium complex EGs
• More than a year for very complex EGs
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Profiling Planning: Priority Setting
 Queries from survey areas
 Profiles started but not completed in previous year
 Enterprise Groups identified by Business Register components
 Enterprise Groups not profiled for 2 years or more (Re-Profiles)
 New Enterprise Groups identified from business publications
22
Business Register
Quality Improvement Unit:
QIS
(Maintain large business information on the BSF)
23
Quality Improvement Survey (QIS), 2012
Purpose of the survey is to improve the quality of the BSF
 The main aim of sample design is to address the known deficiencies
• Sample specifications are used to give structure to the design (Sample size =
4 165 live (‘acti’, ‘birt’ & ‘reac’) ENs
• 2 000 ENs classified with SIC=09000 – LBU additional scope
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Business Register
Quality Improvement Unit:
Development
(Development and implementation of guidelines,
procedures and training programmes)
25
Development
This component is responsible for:
 Snapshot- and Frame creation
 Design, Development and Collection of the Quality Improvement
Survey (QIS)
 Updating documents originated from the BR division
 Implementing the Units Model
 Coordinating BR information sessions to internal stakeholders
Slide 28
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Units Model Structure
Operating
Entities
ITs
VAT-Rs
VAT-Bs
Operating
Structure
ENs
SamplingU
nits
Clusters
PAYEs
Legal
Entities
KAUs
Reporting
Arrangements
UIFs
Legal
Structure
Organisational
Data
Observational
Units
GEOs
SDLs
Administrative Data
Administrative Data Processing
Standard
Statistical
Units
Profiling
Sampling
Survey
27
Statistical Unit Structure
 Enterprise (EN) unit - a legal unit or combination of legal units that
carry out production activities.
 Kind-of-Activity (KAU) unit - is an enterprise unit or a part of an
enterprise unit involved in one or predominantly one kind of activity
on a 5-digit SIC level.
 Geographical (GEO) unit – is an enterprise unit or part of an
enterprise unit involved in one or predominantly one kind of activity
on a 5-digit SIC level at or from one location.
28
Snapshot and Frame creation process
M&E: (ADAPT)
SQL Processes
IBR Administrative Files (IT, VAT, PAYE, UIF,
SDL, etc) and IBR Linkage Table
VAT (updates)
IT (updates)
BSF
Clusters with IT/ VAT and
active PAYE/ UIF / SDL
ENs
SNAPSHOT
ENs
(every EN record on BSF)
LINKAGES EN-IT, EN-VAT, IT/VAT-VAT/
PAYE/UIF/SDL
ENs with indicators
VAT/PAYE/UIF/SDL
3 483 615
ENs
ENs
COMMON MAIN FRAME
ENs
(“Live”)
BR:QIU
SAS Processes
1 450 988 ENs
COMMON FINANCIAL
SAMPLING FRAME
493 881 ENs
QES
TRANSPORT
MANUFACTRURING
ACCOMODATION.
QFS
WHOLESALE TRADE
RETAIL TRADE
MOTOR TRADE
LSS
FOOD & BEVERAGES.
AFS
AGRICULTURE
M&E:(Methodology & Support)
SAS Processes
(IT+VAT or VAT only)
Source: May 2012 snapshot
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Frame creation
Common Main Frame (43% of BSF)
1.499 million ‘Live’ enterprises (life cycle code is birthed, activated or
reactivated)
O ther
10%
Not classified
9%
Wholesale- and Retail
Trade Sales and O ther
Trade Sales 14%
Manufacturing
8%
Agriculture, Forestry
and Fishing
7%
Construction
5%
Financial
Intermediation,
Insurance, Real Estate
and Business Services
30%
2010
Unclassified
(SIC=09000) 17%
2011
30
30
Industry distribution on the BSF
Source: May 2012 snapshot
31
Business Register
Quality Improvement Unit:
Analysis
(Comprehensive analysis on all enterprises on the BSF)
32
Reasons for analysis of the BSF
 To monitor the quality of the BSF
 To track changes and reasons for changes to the BSF
 To ensure that recommendations are implemented correctly
33
Detailed classification status by size group (1)
Percentage of industries classified on a 4- and 5digit level on the common frame
SIC
Description of the SIC
Size
group 1
Size
group 2
Size
group 3
Size
group 4
Turnover
value not
available
1
Agriculture, Hunting, Forestry and Fishing
90
77
72
77
5
2
Mining and Quarrying
99
95
75
26
7
3
Manufacturing
99
97
91
54
6
4
Electricity, gas and water supply
100
100
100
100
29
5
Construction
100
99
98
88
17
6
Trade Industries (61-Wholesale ,62 – Retail, 63
– Motor, 64 - Hotels and restaurants)
99
99
93
72
8
7
Transport, Storage and Communication
99
96
89
57
9
8
Financial intermediation
98
97
93
66
9
9
Community, social and personal services
99
97
91
66
6
34
Thank you
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