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
Sector
B-N, -642
B-E
B
C
D
E
F
G-N, -642
G
H
I
J
K-642
L
M
N
Active Enterprises Enterprise Births
Birth Rate
(Number)
(Number)
(Percentage)
201,461
16,696
13,974
861
..
..
12,765
764
..
..
716
59
58,454
5,717
129,033
10,117
42,280
2,553
11,095
822
15,724
1,060
8,958
930
3,956
390
9,030
1,209
27,127
2,293
10,863
860
8.29
6.16
5.99
8.24
9.78
7.84
6.04
7.41
6.74
10.38
9.86
13.39
8.45
7.92
Enterprise Birth Rate, 2007
NACE Rev 2
Sector
B-N, -642
B-E
B
C
D
E
F
G-N, -642
G
H
I
J
K-642
L
M
N
Active Enterprises Enterprise Births
Birth Rate
(Number)
(Number)
(Percentage)
207,736
13,461
6.48
14,354
672
4.68
..
16
13,027
576
4.42
..
26
772
54
6.99
59,124
3,824
6.47
134,258
8,964
6.68
43,205
2,202
5.10
11,384
658
5.78
15,794
913
5.78
9,488
879
9.26
4,554
487
10.69
9,617
958
9.96
28,505
1,930
6.77
11,711
937
8.00
Enterprise Birth Rate, 2008
NACE Rev 2
Sector
B-N, -642
B-E
B
C
D
E
F
G-N, -642
G
H
I
J
K-642
L
M
N
Birth Rate
Active Enterprises Enterprise Births
(Percentage)
(Number)
(Number)
5.89
11,954
203,083
4.54
648
14,265
5.45
21
385
4.19
540
12,886
15.79
33
209
6.75
53
785
4.62
2,489
53,893
6.53
8,816
134,925
5.32
2,298
43,205
5.27
583
11,069
6.97
1,115
15,987
8.92
864
9,682
7.08
325
4,591
7.55
700
9,274
7.28
2,133
29,283
6.75
799
11,834
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 (%)
FIGURE BD1
Enterprise birth rate, EU average, 2006 (%) (1)
0
5
10
15
Energy (Section E)
Business activities (Section K) (2)
Financial services (Section J)
Energy (Section E)
Business activities (Section K) (2)
Financial services (Section J)
Construction (Section F)
BUSINESS ECONOMY (Sections C to K) (2)
Hotels & restaurants (Section H)
Distributive trades (Section G)
Transport & comm. (Section I)
Manufacturing (Section D)
Mining & quarrying (Section C)
12.6
12.0
11.6
11.1
9.8
9.4
8.6
8.2
5.9
5.6
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)
(1) Weighted average based on available data: Estonia, Spain, France, Italy, Latvia, Hungary, Austria, Portugal, Romania, Sweden and United Kingdom, 2006; Bulgaria, Czech Rep
(2) Excluding management activities of holding companies (NACE Class 74.15).
Source: Eurostat (SBS)
Enterprise Birth Rate,
business economy, 2006 (%)
FIGURE BD2
Enterprise birth rate, business economy, 2006 (%) (1)
EE
RO
PT
DK
UK
BG
LU
ES
DE
LV
NL
EU
FR
SI
CZ
HU
AT
FI
SK
IT
CY
SE
MT
CH
15.9
14.6
14.2
13.2
12.9
11.9
11.1
10.4
10.0
9.9
9.8
9.8
9.4
8.8
8.7
8.7
8.4
8.3
7.3
7.1
7.1
6.7
2.2
3.6
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
(1) NACE Sections C to K, excluding management activities of holding companies (NACE Class 74.15); Bulgaria, Czech Republic, Denmark, Cyprus, Luxembourg, Malta, Netherlands, Slovenia, Slovakia and Finlan
Source: Eurostat (SBS)
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)
FIGURE BD3
Enterprise survival rate, business economy, 2006 (% of enterprises born two years before who survived) (1)
100
SE
SI
UK
RO
FR
ES
IT
LU
EU
NL
LV
SK
FI
EE
HU
CZ
PT
CH
87.3
82.5
79.2
77.6
76.6
75.2
74.7
73.9
73.7
73.1
73.0
72.8
66.7
64.6
63.1
61.1
59.5
70.7
75
50
25
0
SE
SI
UK
RO
FR
ES
IT
LU
EU
NL
LV
SK
FI
EE
HU
CZ
PT
CH
(1) NACE Sections C to K, excluding management activities of holding companies (NACE Class 74.15); Czech Republic, Luxembourg, Netherlands, Slovenia, Slo
Source: Eurostat (SBS)
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
2008 Business economy excluding activities of holding companies (B to N,-642)
Industry (B to E)
Mining and quarrying (B)
Manufacturing (C)
Electricity, gas, steam and air conditioning supply (D)
Water supply; sewerage, waste management and remediation activities (E)
Construction (F)
Business economy services excluding activities of holding companies (G to N,-642)
Wholesale and retail trade; repair of motor vehicles and motorcycles (G)
Transportation and storage (H)
Accommodation and food service activities (I)
Information and communication (J)
Financial and insurance activities excluding activities of holding companies (K-642)
Real estate activities (L)
Professional, scientific and technical activities (M)
Administrative and support service activities (N)
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)
11579
12792
22321
576
555
1011
13
10
29
495
504
867
20
3
5
48
38
109
3215
3442
5007
7788
8794
16303
1930
2137
4310
560
672
998
787
1883
4066
785
721
1504
413
249
587
767
728
901
1722
1619
2584
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