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Business demography (bd)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: State Data Agency (Statistics Lithuania)

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The annual Business demography (BD) data collection covers variables which explain the characteristics and demography of the business population. The methodology allows for the production of data on enterprise births (and deaths), that is, enterprise creations (cessations) that amount to the creation (dissolution) of a combination of production factors and where no other enterprises are involved (enterprises created or closed solely as a result of e.g. restructuring, merger or break-up are not considered).

A summary of the available indicators is listed below. The data is available at EU, country and regional level, with breakdowns for type of activity, legal form and size class.

For the population of active enterprises:  
• Number of active enterprises
• Number of enterprise births
• Number of enterprise survivals up to five years
• Number of enterprise deaths
• Related variables on employment: 'employees' and 'persons employed' (employees and self-employed persons)

For the population of active employer enterprises:
• Number of enterprises having at least one employee
• Number of enterprises having the first employee
• Number of enterprises having no employees anymore
• Number of enterprise survivals up to five years
• Related variables on employment: 'employees' and 'persons employed' (employees and self-employed persons)


For high-growth enterprises, the following indicators are available at EU and country level:
• Number of high-growth enterprises  (growth by 10% or more)
• Number of employees of high-growth enterprises
• Number of young high-growth enterprises (up to five years old high-growth enterprises)
• Number of employees of young high-growth enterprise

16 December 2024

BD constitutes an important and integrated part of the EU Regulation 2019/2152 on European Business Statistics (EBS Regulation).

Activity. Activity is defined as any turnover and/or employment and/or investment in the period from 1st January to 31st December in a given year. In employer BD an enterprise is considered active as long as it has at least one employee at any moment of the year. There are no specific inclusions into, and exclusions from the population of active units, e.g. in terms of activity, legal form, location, quality etc. The birth or death dates from the statistical business register (SBR) are not used to decide if units are active.

Enterprise. The enterprise is the smallest combination of legal units that is an organisational unit producing goods or services, which benefits from a certain degree of autonomy in decision-making, especially for the allocation of its current resources. An enterprise carries out one or more activities at one or more locations. An enterprise may be a sole legal unit.

Enterprise Birth. A birth amounts to the creation of a combination of production factors with the restriction that no other enterprises are involved in the event. Births do not include entries into the population due to mergers, break-ups, split-offs or restructuring of a set of enterprises. It does not include entries into a sub-population resulting only from a change of activity. A birth occurs when an enterprise actually starts its activity. An enterprise creation can be considered an enterprise birth if new production factors, in particular new jobs, are created. If a dormant unit is reactivated within two years, this event is not considered a birth.

Employer Enterprise Birth. Birth of an enterprise with at least one employee. This population consists of enterprise births that have at least one employee at any time in the birth year and of enterprises that existed before the year in consideration, but were below the threshold of one employee. 

Enterprise Death. A death amounts to the dissolution of a combination of production factors with the restriction that no other enterprises are involved in the event. Deaths do not include exits from the population due to mergers, take-overs, break-ups or restructuring of a set of enterprises. It does not include exits from a sub-population resulting only from a change of activity. An enterprise is included in the count of deaths only if it is not reactivated within two years.

Employer enterprise death occurs either as an enterprise death with at least one employee in the year of death or as an exit by decline, moving below the threshold of one employee.

Survival. In the BD context, survival occurs if an enterprise is active in terms of employment and/or turnover and/or investment in the year of birth and the following year(s).

High-Growth Enterprises. Enterprises with at least 10 employees at the beginning of their growth and having average annualised growth in the number of employees greater than 10% per annum, over a three years.

Young high-growth enterprises (Gazelles) are up to five years old with average annualised growth of employees greater than 10% per annum, over a three year period. As growth over three years period is observed, the real age of young enterprises is five and four years.

From 2018 and onwards the enterprise is used as the statistical unit in BD. The statistical unit is defined in accordance with the Council Regulation (EEC) No 696 / 93 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community.

The target population is the active market enterprises. The population includes all the economic activities within the NACE Rev. 2, with the exception of Activities of membership organisations (Division S94), Agriculture, Forestry and Fishing (Section A), public administration and Defence, Compulsory Social Security (Section O), Activities of Households as Employers, Undifferentiated Goods and Services Producing Activities of Households for Own Use (Section T), Activities of Extraterritorial organisations and Bodies (Section U).

Size classes (thresholds) are used for the population of employer enterprises (at least one employee) and the population of high-growth enterprises (ten employees in the beginning of the growth).

Lithuania, including branches of foreign enterprises.

2022

Not requested.

  • The number of active, birth, death and survival enterprises, as well as high-growth enterprises is expressed in units.
  • The number of employees is counted as head counts and is expressed in units.
  • The number of persons employed is the sum of number of employees and self-employed persons.
  • The number of self-employed persons is the average number of persons who were at some time during the reference period the sole owners or joint owners of the statistical unit in which they work, measured in annual average headcounts, expressed in units.
  • Derived indicators are expressed in units or percentages.

The missing number of self-employed persons is estimated for both: BD compilation and SBR.

Data from the SBR are used for estimation of preliminary deaths. A preliminary assumption of enterprise death is made when there are no data on the number of employees and turnover.

Enterprises with no employees and self-employed are included when have other indications of activity (e.g., turnover). They made up to 0,03 percent of the population of active enterprises in 2022.

Since 2017 the data from SBS are used for the annual average of employees and self-employed persons in active enterprises. In rare cases when the data is needed either for control purposes or for compilation of BD indicators only and is not provided in SBS the following action can be taken:

  • When only self-employed persons are working in an enterprise, the annual average is calculated by taking the headcount of self-employed persons per observation period and dividing it by the number of periods in a year.
  • Estimations of the number of self-employed are done based on the proposed method in Eurostat − OECD Manual on Business Demography Statistics (2007): the number of self-employed is simply estimated by adding an estimate of the number of working proprietors to the number of employees:
    •      sole proprietorship: number of employees + 1
    •      partnership: number of employees + 2
    •      limited liability company: number of employees + 0
  • The month is used as the shortest observation period for the calculation of the annual average of employees or self-employed persons.
  • The number of employees and self-employed at the end of the reference year is not used as an approximation for the annual average. 

a) Type of data source: 

Multiple data sources: the data from SBR and SBS are used.

b) Coverage of SBR: 

All required activities and legal forms are covered in SBR. No thresholds for inclusion in SBR are applied.

c) Matching, profiling or imputation: 

No matching, profiling or imputation is carried out within the source that could make an impact on the matching or imputation specified in the methodological guidelines. 

SBR includes cessation and registration dates. In BD registration date is used as birth date only if an enterprise really starts its activity on the registration day. The cessation date is used as a death date when the enterprise really stops its activity on the cessation date. When birth and death dates do not correspond to the dates of the activity start and cessation, dates for birth and death are specified additionally for BD.

No significant changes in the data sources were made.

Annual.

The data is received into the SBR on time, some data on a daily basis.

The time period for BD data collection and dissemination (first release) at the national level is six months after the reference year for preliminary data (number of high-growth enterprises) and eighteen months after the reference year for the final data (number of high-growth enterprises, number of surviving enterprises, average number of employees in surviving enterprises).

Not requested.

a) First reference year available (calendar year):

2000

b) Breaks in time series and reasons for the breaks:

NACE Rev. 1.1 was used up to reference year 2007. From 2008 onwards NACE Rev.2 classification (Statistical Classification of Economic Activities in the European Community) is used for all indicators.

In 2017 due to the need to align BD indicators with SBS indicators for the implementation of the Framework Regulation Integrating Business Statistics (FRIBS). Taking into account Eurostat’s consultations on the given point, changes in employment calculations for BD were made. Previous to 2017 employment data in BD was based on the annual average over the operating period of the enterprise. From the reference year 2017 SBS method for employment calculation was applied, which is based on the annual average figures for enterprise employment.