Changes in the Structure of the Business Population Business Demography Jillian Delaney 29 September 2011

What is Business Demography? The Business Demography release contains: Numbers of active enterprises Employment data Changes in enterprise population: – Newly birthed enterprises – Ceased enterprises – Enterprise survivals

Business Demography Data Data currently available for years: – 2006 – 2007 – 2008 – 2009 Internationally comparable methodology Required under EU legislation Available on CSO website:

How to produce Business Demography? Use of Administrative Data for producing Business Demography

Use of Administrative Data for Business Demography Traditional survey methods won’t work – Coverage of full business population required – Births data focuses on small new enterprises Good quality Business Register required – Based on administrative data – Accurate employment figures – Indicate activity for non-employers – Identify enterprises active for each year

Employment Data: P35 Returns Advantages Highly accurate measured by comparison with survey returns Full coverage of every employer Disadvantages No beginning and end dates for employees No part time / full time breakdown Time lag of 11 months after end of reference year All employees in an enterprise group may be filed against one enterprise, but on different survey returns

Non-Employing Enterprises: Administrative Data Available Corporation Tax / Income Tax returns Concept close to turnover Time lag 15 months after end of reference year VAT returns Limited coverage of turnover, but very good coverage of amounts of VAT paid on sales VAT exempt industries not included Files received quarterly Data not available for full calendar year

Business Demography Data Extraction Method Administrative data from P35, VAT, CT and IT extracted for each reference year available Dataset of all tax units active in each reference year created Linked up to Business Register to add NACE code, legal form, geographical information Early version created using older CT and IT returns, updated once CT and IT files received.

Issues with Estimating Enterprise Births and Deaths A new birth usually requires a new tax registration But new tax registration doesn’t always mean a new birth, e.g. – Changes of ownership – Group restructuring Also, tax de-registration may not mean an enterprise death, e.g. – Takeover – Merger

Results Employment and Enterprise Population Changes

Employees in Active Enterprises by Year, Business Economy

Employees in Active Enterprises by Sector and Year

Active Enterprises by Sector and Year

Employees in Active Enterprises in Construction by Size Class and Year

Employees in Active Enterprises in Information and Communication by NACE group and Year

Employees in Active Enterprises in Real Estate by NACE group and Year

Results Enterprise Births and Related Employment

Enterprise Births by Year and Size Class

Employees in Enterprise Births by Year and Size Class

Enterprise Births by Sector and Year

Persons Engaged in Birthed Enterprises by Sector and Year

Persons Engaged in New Births that Survived One Year by Sector and Year

Conclusion Wealth of detailed data available for research Highly dependant on administrative data Feedback and queries are welcome to: