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Business demography (bd)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: STATISTICAL OFFICE OF THE SLOVAK REPUBLIC

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The annual Business demography 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

More information on the contents of different tables: the detail level and breakdowns required starting with the reference year 2021 is defined in Commission Regulation 2019/2152 (‘EBS Regulation’) and Regulation (EU) 2020/1197 (‘EBS General Implementing Act’) concerning European Business Statistics.

20 February 2024

The term business demography is used here to cover a group of variables which explain the characteristics and demography of the business population. The creation of new enterprises and the closure of unproductive businesses can be seen as an important contributor to business dynamism. In addition to studying the population of active enterprises, the counts and characteristics of enterprise births and deaths are examined. Special attention is paid to the impact of these demographic events on employment. In order to provide information on the impact of enterprise births, their development will be followed for five years in order to see how they survive and grow.

 

A methodology has been developed 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. In other words, enterprises created or closed solely as a result of e.g. restructuring, merger or break-up are not included in this data. The methodology of enterprise birth and death is described in the Eurostat-OECD Manual on Business Demography Statistics . The methodology and definitions are based on those of the Business Registers Recommendations Manual and Glossary, because the Business Registers serve as the sources for the Business Demography data. However recent updates of the BD requirements and definition are not included in that manual and have to be checked in the latest legal acts.

The harmonised data collection (started in 2002) aimed to provide comparable data on business demography for European Union (EU) and European Free Trade Association (EFTA) members. In particular it aims to satisfy the anticipated requirements for the indicators used for supporting the Europe 2020 strategy. It also provided key data for the joint OECD-Eurostat "Entrepreneurship Indicators Programme".
With the reference year 2021 BD collection continues with new additional requirements as a part of the Commission Regulation 2019/2152 on European Business Statistics (EBS Regulation).

 

The definitions of the concepts of births, deaths, survivals and activity are as followed:

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-off 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 starts from scratch and actually starts 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 any time in the birth year and of enterprises that existed before the year in consideration, but were below the threshold of one employee.
In other words, "employer enterprise births" comprise all "enterprise births" of a given year minus the non-employer births of the same year plus former non-employer enterprises that have become employers in the given year. Therefore the dataset on "employer business demography" does not have any size class "0 employees" but usually has higher number of "employer births" particularly in size class "up to 4 employees".
As employer enterprise with one employee might be created later in the year, rounded annual average might be 0, however enterprise still belong to employee size class 1 to 4 employees.

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. Equally, a reactivation within two years is not counted as a birth.
For the reference year t normally only preliminary death data are available as it is not yet known if enterprise will be reactivated in t+2 or not.

Employer enterprise death

An 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.
This is the opposite event to the employer enterprise birth. "Employer enterprise deaths" comprise all "enterprise deaths" of a given year minus the non-employer deaths of the same year plus former employer enterprises that have become non-employers in the given year. Therefore the dataset on "employer business demography" usually has higher number of "employer deaths" particularly in size class "up to 4 employees" than the complete dataset covering also non-employers in size class "0 employees".

Survival

In the Business Demography 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). Two types of survival can be distinguished:

  1. An enterprise born in year xx is considered to have survived in year xx+1 if it is active in terms of turnover and/or employment and/or investment in any part of year xx+1 (= survival without changes).
  2. An enterprise is also considered to have survived if the linked legal unit(s) have ceased to be active, but their activity has been taken over by a new legal unit set up specifically to take over the factors of production of that enterprise (= survival by take-over).

Survival data are recorded in the same activity and the same employee size class as in the year of birth. A change of activity within 5 years is not so frequent, but often there is observed an increase in the number of employees in survival enterprises, however for survival data breakdown is used the same employee size class as in the year of birth. It means that survival data by employee size class are not really comparable with active enterprises by employee size class in the same reference period.

Activity

Within the Business Demography context, 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. This definition complements the concept of activity in the Business Registers glossary. In 'employer business demography' an enterprise is considered active as long as it has at least one employee at any moment of year.

High-Growth Enterprises and young High-Growth Enterprises (Gazelles) (growth can be measured by the number of employees - classical definition - or by turnover)

  • Commission implementing EU Regulation 2014/439 set the definition and compulsory collection of high-growth enterprises with at least 10 employees in the beginning of their growth and having average annualised growth in number of employees greater than 10% per annum, over a three year period. The new EBS Regulation (Commission Regulation 2019/2152) and its implementing act (Regulation (EU) 2020/1197) continue this requirement.
  • An additional requirement is to provide the young high-growth enterprises that are up to five years old (Gazelles) 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.
  • Data on high-growth by turnover are provided on voluntary basis.

In the Eurostat-OECD Manual on Business Demography Statistics on Business Demography there are described different definitions of high-growth enterprises.

Enterprises.

The target population is the private sector of economy, including all active enterprises. In the additional datasets on employer business demography, the threshold is set to one employee at any time of the reference period. The following thresholds are used:

  • 1 employee - population of employer enterprises,
  • 10 employees in the beginning of the growth - population of high-growth enteprises and "gazelles" (10%).

The reference area is territory of the Slovakia.

2021

[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

Not aplicable.

a) Type of data source: The Single Public Register administered accoring the law, the Register of Tax Payers and the Social Security Register.

b) Coverage of SBR (Statistical Business Register): Statistical business register covers birth and death dates of all enterprises. These dates are officially assigned and recognized by ministries and state institutions according to the relevant legal acts and by the creation of relationships between legal units belonging to the Enterprise. However, some small enteprises owned by natural persons sometimes operate their enterprise without any valid license. These cases can be specified using administrative data.

c) Matching, profiling or imputation: No matching, profiling or imputation is carried out within the register.

Annual

Data sources are not subject to any time lags which might affect the data quality.

Data generally should be published within 2 calendar years of the end of the reference year.

In the case of indicators on enterprise deaths, a two year lag is foreseen in the methodology in order to confirm whether a presumed death is in fact reactivated. For this reason information on final deaths is generally available later than the stock of enterprises and enterprise births.

[Not requested]

a) First reference year available (calendar year):  2000

b) Breaks in time series and reasons for the breaks:  No breaks in time series.

c) Outliers in time series: No outliers in time series.