EUROPEAN COMMISSION - EUROSTAT ESSnet on Consistency of Concepts and Methods of business-related Statistics 2010 project on statistical units n° The Inquiry on the Statistical Units Qualitative analysis - KAU 1 ____________________________________________________________ ESSnet on Consistency – Project on Statistical Units – Workshop Riga th and 20th June 2012 CSO - Ireland

2 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units The kind-of-activity unit groups all the parts of an enterprise contributing to the performance of an activity at class level (four digits) of NACE Rev.1 (2) and corresponds to one or more operational subdivisions of the enterprise. The enterprise’s information system must be capable of indicating or calculating for each KAU at least the value of production, intermediate consumption, manpower costs, the operating surplus and employment and gross fixed capital formation. Definition of Kind-of-activity unit (KAU):

3 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units Recall the role of KAU in the ‘spine’ of Business Regulations The Statistical Unit Regulation distinguishes and defines Enterprise, KAU, Local Unit and Local KAU The Business Register Regulation requires information to be held on Enterprise and Local Unit but not on KAU or Local KAU. Some variables in the SBS Industry and Construction modules should be based on KAU as well as on Enterprise, some on Enterprise only. The other SBS modules are based on Enterprise The Industry and Construction Annexes of the STS Regulation specify KAU as the only statistical unit to be used. The Retail and Other Services Annexes specify Enterprise. The National Accounts Regulation specifies Institutional Units (~ Enterprise) as the unit for describing income, expenditure and financial flows, and balance sheets. It specifies Local KAU as the unit for describing processes of production and for input-output analysis.

4 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units Respondent Countries by presence of KAU in the statistical domains

5 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units Which countries have KAU and/or Local KAU on Business Register? CY, DK, EE, HU, LT, LV, SE KAU – 11 countries Local KAU – 10 countries 29 countries answered the questions on KAU (Iceland and Liechtenstein did not). 15 of these 29 countries do not have KAU or Local KAU on their Business Register.

6 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units Which countries have KAU in SBS? 17 countries can observe/estimate some or all variables for KAU in SBS, using information available in the BR or from other sources. 3 countries definitely cannot observe/estimate any variables for KAU in SBS. 9 countries – Do not identify KAU

7 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units Countries Identification of Kau and availability of all of the mandatory six variablesAT; ES; LT; LU; PT; SE; SK; UK Identification of Kau and availability of at least one variables (from 1 to 5)CY; DK; EE; FR; HU; IT; LV; RO; SI Identification of Kau and availability of NO variablesDE; IE; NL NO identification of Kau or NO sufficient information BG; CZ; BE; CH; EL; FI; MT; NO; PL

8 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units

9 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units Which countries have KAU in STS Industry? KAUs are the ones identified in the Business Register without any further manipulation (7) AT, DK, EE, LT, LV, SE, UK KAUs are identified by SBS (2)EL, IT KAUs are identified using both the BR and other sources (3) FI, LU, SI, FR Enterprise is observed statistical unit (10)BG, CH, CZ,, HU, MT, NL, PL, RO, SK Local Unit is observed statistical unit (4)BE, DE, ES, IE Local KAU is observed statistical unit (2)NO, PT Not answered (1)CY Countries that gave different answers in the STS Industry – Production are underlined.

10 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units Which countries have KAU in STS Retail and STS Other Services? FI was the only country to indicate they use KAU in STS Retail FI and UK were the only countries to indicate they use KAU in STS Other Services

11 ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units The Inquiry on the Statistical Units Conclusions The majority of the NSIs are not compliant with the KAU definition of the SU Regulation that is mandatory for SBS and STS Only 8 NSIs (corresponding to 25.8% of the European Enterprises and to the 33.4 of the European Employment) observe/estimate the compulsory 6 variables Limiting the KAU definition to the observation of “value of production” and “employment” the coverage increase to 61.9% and 62.4%