Profile of Danish enterprises with 0 employees Peter Bøegh Nielsen Statistics Denmark

Input to SBR: Basic registers In Denmark all people have a id_nr It’s the same for companies, the public sector, institutions and associations. When people get their salary, there is a person_id and company id_nr in some cases the local id_no. All salaries are sent to the tax administration, and we get a online copy of the registration. This also applies to social payments, even we here get information about the payer

Main sources for the SBR Central ABR: the core Local legal units The SBR is a satellite in a wider system of data users/providers Self registration via Internet Legal units Danish Business authority Central Customs and Tax Administration Statistics Denmark Working Environment Authority Labour Market Primary data providers Secondary data providers Central Register of Persons Official Journal the State Vibeke present SD cooperates with other authorities and the businesses Self registration includes submitting an activity code SD is responsible for the activity code and classification (national version of Nace) Birgit The Danish Business Authority provides online access to the Danish Industrial Classification through a web portal The web portal is a collaborative effort between the Authority (and SD provided the content) It is searchable – we can add key words online The registered businesses are responsible for maintaining and updating their data We monitor possible changes to the activity code (using programs) and perform manual check-ups for those entities who belong the 80-percentile with regards to turnover. It’s done every other week and results in a list of about 40 legal units. Some changes are reversed and some confirmed.

Registration of payments All payments must be reported to the tax authorities every month eg. wages, pensions and social payments – no threshold limit full coverage - except payment for self employed in the household sector SD receives this information online from tax authorities Employers should include report information about Legal no, Local unit no, Personal id, wage, period, hours worked, tax-free benefits

VAT All Nace groups (except some activities having exempt from VAT) Coverage: All Nace groups (except some activities having exempt from VAT) Cut-off: Annual turnover of more than 7.000 Euro. Frequency; Biannual <150.000 Euro, quarterly < 2 million Euro , monthly (rest) Deadlines Biannual and quarterly 60 days monthly 25 days What is reported; Domestic sales, exports, purchases, imports. Total sales is calculated by adding domestic sales and exports Still active: SD receives information from the Tax authorities weekly about de-registration of units.

Comments: The access to administrative registers covering both payments of salaries to employees and VAT information and their high activity coverage allows for identifying enterprises of all sizes Furthermore these registers are fully integrated into the production process of the Danish SBR

Importance of enterprises with 0 employees. Share of SBS totals

Enterprises with 0 employees Enterprises with 0 employees. Share of total no of enterprises in the size class

Enterprises with 0 employees. Share of total turnover of the size class

Comments: The results show that the size class 0 employees is of relatively huge importance in terms of no. Of enterprises: 53 per cent of all enterprises 60 per cent of all enterprises are found within Real estate, wholesale and retail trade, construction and consultancy services The results also show that the economic importance is minor – only 7 per cent of total turnover in all activities covered by SBS

Conclusions It is feasible to isolate the 0 employee size class The size class is of minor economic importance As SD does not survey enterprises below 5 employees we have no observed values regarding other SBS variables than no of enterprises and turnover Due to the response burden we do not advocate the inclusion of other variables than no. of enterprises and perhaps turnover – depending on the situation in other countries