ESTP – Structural Business Statistics Luxembourg, 12-14 March 2013 Business demography ESTP – Structural Business Statistics Luxembourg, 12-14 March 2013

Contents Business Demography – definitions and users Legal Basis for Business Demography Datasets, characteristics and breakdowns Additional datasets (still not covered by Annex IX) Employer business demography High-growth enterprises Available documentation Data 14/03/2013 Business Demography

1. Business Demography - definitions Observation of enterprise births, deaths, survivals over time Impact of these “demographic events” on employment Data answering questions like: How many enterprises are born every year compared with the total population of active enterprises? (= birth rate) How many of these enterprises survive for 1…5 years? How many people are employed in these newly born enterprises (compared with all enterprises)? 14/03/2013 Business Demography

1. Business Demography - users EU strategies EU Growth and Jobs Strategy for ‘more and better jobs’ (Structural indicators: Birth rate, Death rate, 2-year survival rate) EU 2020 “More jobs, improved lives, better society” OECD-Eurostat “Entrepreneurship Indicators Programme” Interest by policy makers and researchers at EU and national level European Research Area (ERA) Indicators Globalisation indicators – impact of economic globalisation 14/03/2013 Business Demography

2. Legal Basis for Business Demography Parliament and Council Regulation 295/2008 on SBS, Annex IX Commission Regulations: 250/2009 – characteristics and transmission format 251/2009 – series of data Reference year 2004 onwards 2009: first mandatory data delivery to Eurostat 14/03/2013 Business Demography

2. Legal Basis for Business Demography - future changes Amendments to Commission Regulations (250 and 251): (concerning business demography) employer business demography high growth enterprises (for the EU2020 headline indicator on high growth innovative enterprises) Users' needs to be addressed in the near future: infra-annual data (?) regional breakdown (?) 14/03/2013 Business Demography

3. Datasets, characteristics and breakdowns Population of active enterprises Activity either turnover or employment at any time during the reference period (=calendar year). “live during period” approach (vs. “point in time”) advantage: coverage of seasonal activities and short-lived enterprises 14/03/2013 Business Demography

3. Datasets, characteristics and breakdowns Population of active enterprises Economic activities (NACE Rev. 2) NACE sections B to N, (P to S provisional) exclusion of sections A, O and group 64.2 Agriculture, forestry and fishing Public administration and defence Holdings exclusion of Non-Profit Institutions Serving Households (NPISH) 14/03/2013 Business Demography

3. Datasets, characteristics and breakdowns Breakdown by legal form - no survival data in this series SP Sole proprietor: personally owned and no limit to personal liability LL Limited liability company: private or publicy quoted joint stock companies with limited liability for those owning shares PA Partnerships and other legal forms: personally owned limited and unlimited liability partnerships. Included are also other level forms such as cooperatives, associations etc. TT Total 14/03/2013 Business Demography

3. Datasets, characteristics and breakdowns Breakdown by employee size class Code employees 1 2 1-4 3 5-9 4 10 or more 30 total 14/03/2013 Business Demography

3. Datasets, characteristics and breakdowns Survival Refers to the populations of real births of previous years Survivals up to five years are followed Two possibilities of survival 1) activity during any time of the reference period 2) survival by take-over: new unit X set up specifically for taking over unit Y (or its production factors). Measuring growth Surviving enterprises stay in their initial size classes and NACE activities when observing their survival, even if they outgrow their initial size class or change activity. 14/03/2013 Business Demography

3. Datasets, characteristics and breakdowns Main variables in data collection Enterprise births Enterprise deaths Survival of newly born enterprises Related employment Employees Persons employed Employment and survival: In birth year, all births In birth year, only survivors In survival year  Measurement of employment growth 14/03/2013 Business Demography

3. Datasets, characteristics and breakdowns SERIES (Annex IX): 9A: data collection broken down by NACE activity and legal form 9B: data collection broken down by NACE activity and employee size class 9C: estimated death data broken down by NACE activity and legal form 9D: estimated death data broken down by NACE activity and employee size class 14/03/2013 Business Demography

4. Additional datasets Business Demography limited to employers Employer birth and death Covering cases where non-employers become employers and vice-versa “entry by growth” as special case of employer birth “exit by decline” as special case of employer death 14/03/2013 Business Demography

4. Additional datasets SERIES (Employer Business Demography): 9E: data collection on employer enterprises broken down by NACE activity and legal form 9F: data collection on employer enterprises broken down by NACE activity and employee size class 9G: estimated death data on employer enterprises broken down by NACE activity and legal form 9H: estimated death data on employer enterprises broken down by NACE activity and employee size class 14/03/2013 Business Demography

4. Additional datasets High growth enterprises and “gazelles” 20% or more average annualised growth over 3 years Measurement of growth based on employment or turnover Gazelles: up to 5 years old (i.e. 4 or 5 years old) Medium growth enterprises and young medium growth enterprises 10% or more average annualised growth over 3 years Young medium growth enterprises: up to 5 years old 14/03/2013 Business Demography

4. Additional datasets SERIES (High Growth Enterprises): 9N: data collection on high growth enterprises broken down by NACE activity 14/03/2013 Business Demography

4. Additional datasets 2011-2012: - pilot timely data collections on high growth enterprises and related employment (development work on indicator) 14/03/2013 Business Demography

5. Available documentation Eurostat-OECD Manual on Business Demography Statistics (http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-RA-07-010/EN/KS-RA-07-010-EN.PDF) Compatible with BR Recommendations Manual of Eurostat Detailed description of concepts Suggestions on producing results on demographic events Business Demography Glossary (annex to Manual) Based on BR glossary and concepts of Structural Business Statistics Annual data request to Member States (including transmission format) 14/03/2013 Business Demography

Where to find more information? dedicated sub-site (directly) http://epp.eurostat.ec.europa.eu/portal/page/portal/european_business/special_sbs_topics/business_demography or from Eurostat website http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home Tab “Statistics” Themes: “Industry, Trade and Services” Dedicated section: “Structural Business Statistics” Special topics: “Business Demography” All data and publications free of charge 14/03/2013 Business Demography

Enterprise birth and death rates (Annex IX), Enterprise birth and death rates (Annex IX), Business Economy, 2009 (%) (1) (1) Death rates - preliminary ; EE: 2008 Source: Eurostat 14/03/2013 Business Demography

enterprise births and persons employed in newly born enterprises Structure of enterprise births and persons employed in newly born enterprises by size class, (Annex IX) Business Economy, 2009 (1) EE, CY: confidential size class data on employment in births. Source: Eurostat 14/03/2013 Business Demography

Enterprises Employment Changes among enterprises born in 2002 and surviving to 2007, Business Economy (2002=100) Enterprises Employment Source: Eurostat 14/03/2013 Business Demography

Enterprises Employment Changes among enterprises born in 2002 and surviving to 2007, Business Economy (2002=100) Enterprises Employment Source: Eurostat 14/03/2013 Business Demography

Enterprises Employment Changes among enterprises born in 2002 and surviving to 2007, Business Economy (2002=100) Enterprises Employment Source: Eurostat 14/03/2013 Business Demography

Enterprises Employment Changes among enterprises born in 2002 and surviving to 2007, Business Economy (2002=100) Enterprises Employment Source: Eurostat 14/03/2013 Business Demography

Enterprises Employment Changes among enterprises born in 2002 and surviving to 2007, Business Economy (2002=100) Enterprises Employment Source: Eurostat 14/03/2013 Business Demography

Birth rates (Annex IX and EBD), Business Economy, 2009 (%) Note. FR, SE: 2008 Source: Eurostat 14/03/2013 Business Demography

Birth rates (EBD) and its "entry by growth" share, Birth rates (EBD) and its "entry by growth" share, Business Economy, 2009 (%) Note. FR, SE: 2006 Source: Eurostat 14/03/2013 Business Demography

Share of HGE in the population of employer enterprises, NFBE, 2010 (%) 14/03/2013 Business Demography

Share of HGE employment in total employment Share of HGE employment in total employment of employer enterprises, NFBE, 2010 (%) 14/03/2013 Business Demography

Share of HGE employment in total employment of employer enterprises, NFBE, 2008-2011 (%) 14/03/2013 Business Demography

Average size of employer enterprise, NFBE, 2010 (number of employees) 14/03/2013 Business Demography

Average size of high growth enterprise, NFBE, 2010 Average size of high growth enterprise, NFBE, 2010 (number of employees) 14/03/2013 Business Demography

Thank you for your attention ☺ Any questions? Aleksandra Stawińska Aleksandra.Stawinska@ec.europa.eu 14/03/2013 Business Demography