13-Jul-07 Results of the vignettes on the test of a new definition of enterprises

13-Jul-07 Name of the presentation Context of the study Eurostat MEETS program –Need to develop statistics on globalisation ESSnet on profiling large and complex multinational enterprise groups (MNE) –Need to improve consistency in European statistics Consistency between countries Consistency between domains of business statistics ESSnet on consistency –One common interest for the statistical unit “enterprise” in both projects, several reasons to change the definition of enterprise Common statement on the necessity to change the definition of enterprise

13-Jul-07 Name of the presentation The profiling project proposes a new definition of enterprise To better take into account the global dimension of economic activity To improve relevance of national business statistics, significance and comparability at the European level A top-down approach to delineate the new enterprises 2 levels of enterprises –The global enterprises (GEN) defined regardless of the geographic dimension –The truncated enterprises (TEN): the national parts of the GEN

13-Jul-07 Name of the presentation How to test the new definition of “enterprise”? The adoption of a new definition for enterprises: a sensitive topic –The NSIs expressed an opposition in the different working groups (BR, SBS) How to collect information on the new enterprises? ESSnet profiling proposes a more collaborative way to delineate the new enterprises –Loss of sovereignty of the countries Breaks in series due to the change of definition Need to transfer the debate from the political to the technical level

13-Jul-07 Name of the presentation What are the vignettes? Technique used mainly –In questionnaire testing –In qualitative research and social statistics Short stories Use the respondent’s words Contain a bit of ambiguity Enlighten the response process Appropriate to test a new definition of enterprise –Need to elicit the context of a new definition and its impact on NSIs' organisation and on statistics –Avoid preconceived judgment

13-Jul-07 Name of the presentation Principles applied to build the vignettes Stories must appear plausible and real to participants Stories need to avoid depicting eccentric characters and disastrous events Vignettes need to contain sufficient context for respondents to have an understanding about the situation being depicted, but be vague enough to ‘force’ participants to provide additional factors which influence their decisions Vignettes must be presented in an appropriate format

13-Jul-07 Name of the presentation The building of the vignettes Describe current situations –supposed to be encountered yet in the EU countries –difficult to tackle for the business statisticians –Solved with the new definition Cases presented according to a growing scale of complexity Graphical illustration with a short text aside To be tested in different domains of business statistics –SBS, STS, BR, NA

13-Jul-07 Name of the presentation Topics treated in the 7 vignettes Treatment of a legal unit performing an ancillary activity for another legal unit or for 2 other legal units in the same group Treatment of vertically integrated activities in one country and in two countries Treatment of international trading flows in the frame of a multinational enterprise group Treatment of the headquarters Determination of the activity code in complex situation Treatment of a legal unit acting for 2 global enterprises in the group Organisational aspects of gathering statistics on newly defined statistical units

13-Jul-07 Name of the presentation General results of the vignettes 42 answers received from 25 EU countries 7 countries sent a single coordinated answer for all the domains 10 answers from BR respondents

13-Jul-07 Name of the presentation General results of the vignettes Ability of changing Degree of closeness toward the definition of profiling

13-Jul-07 Name of the presentation A majority of respondents open to consider the enterprise as a set of legal units NSIs promote the follow up of national activities against the global activity of the group The use of administrative data does not win unanimous support: the NSIs prefer in majority to survey the new TEN The split of legal units is not well accepted General results of the vignettes

13-Jul-07 Name of the presentation Vignette 1: One country / one ancillary activity serving one LeU

13-Jul-07 Name of the presentation Vignette 1: One country / one ancillary activity serving one LeU

13-Jul-07 Name of the presentation Vignette 2: One country / vertical integrated activities/ one ancillary activity serving several LeUs

13-Jul-07 Name of the presentation Vignette 2: One country / vertical integrated activities/ one ancillary activity serving several LeUs

13-Jul-07 Name of the presentation Vignette3: Two countries / global integration of activities /1

13-Jul-07 Name of the presentation Vignette3: Two countries / global integration of activities /1

13-Jul-07 Name of the presentation Vignette 4: Two countries / global integration of activities /2

13-Jul-07 Name of the presentation Vignette 4: Two countries / global integration of activities /2

13-Jul-07 Name of the presentation Vignette 5: Two countries / International trading flows

13-Jul-07 Name of the presentation Vignette 5a: Two countries / International trading flows In country C1

13-Jul-07 Name of the presentation Vignette 5b: Two countries / International trading flows In country C2

13-Jul-07 Name of the presentation Vignette6: Two activities, one common wholesale trade

13-Jul-07 Name of the presentation Vignette6: Two activities, one common wholesale trade

13-Jul-07 Name of the presentation Vignette7: Two countries / One global head quarter

13-Jul-07 Name of the presentation Vignette7: Two countries / One global head quarter

13-Jul-07 Name of the presentation Preliminary conclusions A door is open for the change Answers provided contradicted opinion expressed in working groups –A majority of respondents open to consider the enterprise as a set of legal units –Use of administrative data does not win unanimous support: the NSIs prefer in majority to survey the new TEN –Consolidated data are preferred Distinguish the definition and the principles proposed by the ESSnet profiling from their application –As results of the top down approach One GEN / one TEN Split of legal units –In practice Double classification to adapt the NACE code of the TEN to the activity performed in the country Try to avoid the split of legal units as much as possible (recommendation for profilers)

13-Jul-07 Name of the presentation Preliminary conclusions Need for pedagogy from the ESSnet profiling to the future users of the new statistical units Provide them with solutions on how to concretely proceed –Aim of the documents: Methodological document Guidelines Instructions Need to further explore how to use administrative data on legal units to build statistics on enterprises

13-Jul-07 Name of the presentation Thank you for your attention!!