Meeting of Task Force on Small and Medium Sized Enterprise Data (SMED ) 13 th April 2015, 10:00-17:00 Inclusion of all economic sectors in SBS Giampiero Siesto

Executive summary With regard to the agriculture sector, Istat is working for the construction of the Farm Register through the integration of statistical and administrative sources, which should be realized by During 2016 Istat will launch a survey to assess the quality of the register, that will include information for about 1,500,000 farms. This step will allow to obtain a Farm Register updated yearly, that will be very useful to select samples, define the final weights for extrapolate the sample results to the population, to have updated information on the structure of farms and to make longitudinal analyzes. For the financial sector, other organizations collect and transmit data for the Annex 5, 6 and 7 of the SBS regulation. 4

Executive summary About what countries can do to extend SBS coverage, the essential point is to invest resources in the Business Register in order to improve also the selection process of the enterprises operating on the market. According SEC2010, each institutional unit is classified in Sector S13 on the basis of predominantly economic criteria, regardless of the legal regime that governs it; the valuation needs to analyse the economic behaviour through the application of the test market/non market (as the shares sales cover production costs, including cost of capital) and analysis of competitive conditions. Expanding the sectorial coverage only for having a more complete picture of the contribution of SMEs can not be seen as an objective to achieve absolutely. It should assess the costs and benefits (role of the SMEs in some areas in terms of persons employed and value added could be less significant). Among the costs it is necessary to consider the expansion of the sample and therefore the burden on the enterprises, as well as the costs for the national statistical institutes. 4

Inclusion of all economic sectors in SBS Italian SBS data are elaborated using multidimensional micro data containing the Business Register and administrative variables (FrameSBS) together with the estimates of the sample survey on small and medium sized enterprises with less than 100 persons employed (PMI, for example investments, number of hours worked by employees, breakdowns of the Annex 8) and of the total survey on enterprises with 100 persons employed and more (SCI). The field of observation of those sources is wider in comparison with the SBS Regulation request. FrameSBS, PMI and SCI, in fact, covers also the following economic activities: -P (Education) ; -Q (Human health and social work activities); -R (arts, entertainment and recreation) -S96 (other personal services activities). Besides, the PMI survey (but not SCI survey), collect also data for the Nace K66 (activities auxiliary to financial services and insurance activities) for the only purposes of the National Accounts. 5

Inclusion of all economic sectors in SBS Italian SBS data are elaborated using multidimensional micro data containing the Business Register and administrative variables (FrameSBS) together with the estimates of the sample survey on small and medium sized enterprises with less than 100 persons employed (PMI, for example investments, number of hours worked by employees, breakdowns of the Annex 8) and of the total survey on enterprises with 100 persons employed and more (SCI). The field of observation of those sources is wider in comparison with the SBS Regulation request. FrameSBS, PMI and SCI, in fact, covers also the following economic activities: -P (Education) ; -Q (Human health and social work activities); -R (arts, entertainment and recreation) -S96 (other personal services activities). Besides, the PMI survey (but not SCI survey), collect also data for the Nace K66 (activities auxiliary to financial services and insurance activities) for the only purposes of the National Accounts. 5

Inclusion of all economic sectors in SBS Agriculture sector is excluded both in SBS Regulation and the field of observation of Italian SBS surveys; the main reason is related to the difficulty in building a Farm Register of good quality. Financial sector is excluded in the field of observation of Italian SBS surveys. Actually, these statistics are not transmitted by Istat but by other Italian organizations such as Ivass (Annex 5 – Insurance Services), Banca d’Italia (Annex 6 – Credit Institutions) and Covip (Annex 7 – Pension Funds). For the Nace P, Q, R and S(96) not requested by SBS Regulation, Istat collect data for those economic activities and disseminate all the variables requested by SBS Regulation and for the same domains/breakdowns. 5

Inclusion of all economic sectors in SBS In the year 2012 Italian enterprises in the industrial and services sectors produced value added for around 690 billion euros. The enterprises were 4.4 millions and employed 16.1 million persons (11.2 million employees). The average enterprises size was 3.7 persons employed. The Italian productive structure is based on the micro enterprises with 0-9 persons employed: they represented 95.2% of the active enterprises, 47.5% of persons employed and 30.8% of the total value added; The larger enterprises with 250 or more persons employed, although represented only 0.1% of the total enterprises, employed 19.4% of person employed and accounted for 31.5 of the total value added. 5

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Inclusion of all economic sectors in SBS The activities outside the SBS Regulation (P, Q, R, S96) represented: -12.1% of the enterprises; - 8.8% of the person employed; - 6.3% of the value added; -about 85% of the value added is produced by SMEs (in the same activities) The main obstacles for including these economic activities by NSIs are linked to the increasing of sample size and, then, burden on enterprises. Another difficulty might be the classification of the enterprises as market/non market. 4