Business Demography Indicators for the euro area Heinz Dieden European Central Bank – DG Statistics OECD Structural Business Statistics Expert Meeting 10-11 May 2007, Paris

Introduction Why ECB interest in statistics on enterprise demography? 1 Introduction Why ECB interest in statistics on enterprise demography? Dynamics of economic branch (e.g. IT industries) Employment effects Climate of entrepreneurship Competition among economies Short-term and structural analysis NO euro area data available for this purpose

Initiative of the WGGES 2 Initiative of the WGGES Working Group on General Economic Statistics ECB and all EU National Central Banks (NCBs) Co-ordination with Eurostat 2005: work on 5 business demography indicators Eurostat definition as targets: Enterprise births of which: real births Enterprise deaths of which: bankruptcies Stock of enterprises Breakdown for NACE A6 categories

Total enterprise births Total enterprises deaths 3 Results from the stocktaking (1) Euro area country coverage rates Total enterprise births Of which ‘real’ births Total enterprises deaths Of which bankruptcies Stocks of enterprises Annual 88.6 % 72.5 % 67.2 % 96.2 % 1) 98.0 % Quarterly 69.5 % 30.4 % 48.1 % 63.1 % 17.7 % 1) Includes stock data for Italy on bankruptcies, the country coverage excluding Italy is 78.5%.

Results from the stocktaking (1I) 4 Results from the stocktaking (1I) Timeliness (for larger countries) Quarterly data: 1-3 months Annual data: 2-6 months Sources Administrative register or statistical business register maintained by the NSI For IT and AT: chambers of commerce  Therefore data meet national quality standards and are validated for publication

Total enterprise births Total enterprises deaths 5 Results from the stocktaking (III) – Euro area Total enterprise births Of which ‘real’ births Total enterprises deaths Of which bankruptcies Stocks of enterprises Level (‘000) Coverage (%) 2000 1,998.8 88.6% 370.6 35.0% 1,393.4 67.2% 100.0 78.5% 13,030.3 66.8% 2001 1,991.1 359.8 1,409.5 106.7 13,568.0 69.9% 2002 1,950.3 659.2 46.3% 1,420.6 142.7 16,887.7 98.0% 2003 2,036.8 88.2% 1,374.8 74.4% 1,359.1 64.9% 167.0 17,145.1 2004 2,252.0 86.3% 1,544.2 72.5% 1,390.6 185.1 13,753.6 64.5% 2005 2,102.9 80.8% 1,500.4 1,364.3 59.4% 204.4 10,285.3 37.6% 2003 Q1 432.2 69.5% - Q2 393.3 Q3 371.6 Q4 395.6 2004 Q1 491.0 450.6 405.6 456.0 2005 Q1 465.7 454.9 398.2 410.8

Quarterly enterprise births (annual percentage changes) 6

Conclusions (I) Two datasets – two approaches Eurostat WGGES/ECB 7 Conclusions (I) Two datasets – two approaches Eurostat Legal framework Harmonised methodology and data No euro area data yet; annual frequency; timeliness WGGES/ECB Available national data (often non-harmonised) Annual and quarterly data Higher timeliness

Conclusions (II) Based on national, non-harmonised data: 8 Conclusions (II) Based on national, non-harmonised data: First euro area estimates for some indicators Enterprise births: annual and quarterly Bankruptcies: annual Stock of enterprises: annual  First euro area aggregates are encouraging and are a unique dataset

9 Conclusions (III) Eurostat data and WGGES data complement each other in many aspects: Timeliness Frequency Availability Where available, harmonised Eurostat data is used plus WGGES data Euro area breakdowns according to NACE A6 not yet possible