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Business demography (bd)

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National Reference Metadata in Single Integrated Metadata Structure (SIMS)

Compiling agency: INSEE - French National Statistics Institute - Business Statistics Directorate

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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 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 and country level:

  • Number of high-growth enterprises .
  • 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.

For high-growth micro enterprises, the following indicators are available at and country level:

  • Number of high-growth micro enterprises.
  • Number of employees of high-growth micro enterprises.

7 April 2025

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

An active enterprise is an enterprise which has a positive turnover or employment performs or is the owner of another legal entity during the reference year.

In practice, the “economically active” nature of units is established on the basis of the following criteria, known from administrative sources: positive turnover, number of employees during the year,  existence of a tax return relating to the reference year.

Enterprise births are enterprises which are active in the reference year and were not during the two previous years, with the restriction that no event (such as merger, break-up, split-off, take-over...) involving another enterprise happened during the reference year and the previous one.

Enterprises deaths are enterprises which are active in the reference year and are not during the next two years, with the restriction that no event (such as merger, break-up, split-off, take-over...) involving another enterprise happens during the reference year and the next one.

Enterprise survivals are enterprises which were born before the reference year and which were active every year from birth to the reference year. Survivals by take-over are taken into account in the calculation.

A high-growth enterprise is an enterprise which had at least 10 employees three years before the reference year (reference year - 3), with average annual growth for the number of employees greater than 10 % per annum, over a three year period (reference year - 3 to reference year).

A micro high-growth enterprise is an enterprise which had between 1 and 9 employees three years before the reference year (reference year - 3), with average annual growth for the number of employees greater than 3.31 over a three year period (reference year - 3 to reference year).

Since the reference year 2021, the French business demography statistics are almost fully produced in enterprise. However, some data for class 64.11, 64.19 and division 65 are in legal units; in addition, enterprise births and enterprise survivals are calculated in 'legal unit'.
Prior to reference year 2021, the statistical unit was the legal unit, except for the 100 largest French compagnies, which were treated as 'enterprises'.

The statistical population covered includes all companies, natural persons or legal entities, which are market producers, i.e. businesses selling goods or services at an economically significant price and producing goods or services.

The statistics on active enterprises cover the French national territory, including Corsica and overseas departments (Guadeloupe, French Guyana, Martinique, Mayotte and La Réunion). Ultra-peripheral territories are excluded except Saint-Martin, which is grouped with Guadeloupe.

2022.

Not requested.

  • The numbers of active, birth, death and survival enterprises, as well as high-growth enterprises and high-growth micro enterprises are expressed in units.
  • The number of employees is counted 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.

Estimation of preliminary deaths

Enterprise deaths in year Y cannot be known with certainty when estimating them in Y+2, because it is not possible, at this time, to determine for all enterprises which ones are active in Y+1 or in Y+2. The state of activity of some enterprises is nevertheless known in Y+1, thanks to infra-annual employment or turnover data, or to annual data on the turnover of some sole proprietorships. Administrative cessation declarations can also be used. The fact remains that, for a significant proportion of enterprises, no information on their activity is known for year Y+1, even more for year Y+2. Thus, a simple model for estimating the number of enterprise deaths is implemented, based on the application of death rates observed in the past.

Average number of employees

The average number of employees is calculated taking into account the duration of the contract of each employee during the year. This amounts to calculating the average number of employees by taking headcount of employee per day. This data is provided by the employment department at Insee.

Average number of self-employed persons

The numbers of self-employed persons used by business demography come exclusively from the Self-employed database established and maintained by the INSEE employment department, which lists almost exhaustively the people who were affiliated during the year to a social protection system for self-employed persons. Data are provided only referring to the end of the year, then the number of self-employed persons is considered at the end of the year and not as an annual average.
The self-employed persons taken into account by business demography are those who were active at the end of the year and who carry out their self-employed activity as their main activity (if they have a salaried job elsewhere). Finally, it should be noted that certain individual entrepreneurs are not affiliated to a social protection scheme for self-employed persons; in this case, they are not taken into account in the numbers of self-employed persons provided by business demography. This number is calculated thank to self-employed database.

  • Type of data source: The statistical business register (called Sirus) is the main data source used by Business demography. It provides multiple information on enterprises: scope (market productive), activity from an administrative point of view, sector of activity, legal lorm, location, delineation of enterprises in legal units, and various economic data. The data from SBR comes from or is supplemented by turnover data (VAT), data on the workforce (Pay and salaried employment localized file) and on self-employed persons (self-employed database) provided by the employment department, as well as tax data/financial statements used by SBS (Esane).
  • Coverage of SBR (Statistical Business Register): The Statistical Business Register is supposed to cover all market productive enterprises falling within the sectoral scope of business demography (ie. within the NACE Rev. 2 Sections B to N, P to R and Divisions S95 and S96), whatever their legal form. No threshold of turnover is applied.
  • Matching, profiling or imputation: The profiling of groups into economic enterprises is performed by a dedicated unit. Data on 'enterprises' (as statistical units) are gathered by SBR, which makes them available to users, including business demography and SBS.

An 'enterprise' is assumed to be active if one of its legal units is active, within the meaning of the activity criteria applied by business demography (positive turnover, employees, filling a tax return). Besides, an enterprise is considered to be continued from year Y-1 to Y, if there is a set of legal units which belong to this 'enterprise' both in year Y-1 and Y and which represent more than 50% of the enterprise's total workforce in Y-1 and Y.

Due to data availability issues, profiling cannot be applied to companies that were created during the reference year. Thus, enterprise births are always, within the framework of the current business demography system, births of legal units. New legal units can only be gathered into 'enterprises' the year following their administrative creation.

For consistency, the calculation of survivals is also carried out in legal units.

No form matching is applied.

Annual.

The various administrative data used to produce business demography statistics (financial statements, employment data, ownership data, etc.) for reference year Y become available between April Y+1 and April Y+2, at the latest.

The first national dissemination of structural business demography data for year Y takes place during year Y+2.

Not requested.

French business demography statistics, provided under Regulation (EC) No 295/2008 of the European Parliament and of the Council, are available from the 2008 reference year. From reference year 2021 onwards, business demography data are transmitted in accordance with Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics.

Breaks in time series from 2008 to 2020:

Time series are comparable for the period 2008-2012.

As from reference year 2014, three changes were made:

  1. a better definition of legal form;
  2. decimal numbers were used for the bounds in employee size class;
  3. the number of employees were calculated in full-time equivalent instead of head count;
  4. 100 biggest profiled enterprises were introduced in the active population instead of 3500 legal units.

This changes introduced a break in time series. As corrected data for reference year 2013 (except for point 4) were delivered in 2017 according to this new methodology, time series are comparable for the period 2013-2020.

Concerning the Regional Business Demography, the region classification NUTS changed for the French NUTS1 level from reference year 2016. New Regional Business Demography data were delivered for reference years 2014 and 2015 with the new NUTS classification for a better comparability over time.

From the reference year 2021 onwards:

From the reference year 2021, as the EBS regulation came into force, French business demography data has undergone a major overhaul.

The main changes implemented were the following :

  • With regard to the statistical unit: the statistical unit used is now the ‘enterprise’, whereas previously it was only used for the top 100 French entreprises, with smaller entreprises being assimilated to legal units.
  • With regard to the activity criteria: an enterprise is deemed active if there are actual signs of economic activity over the year (turnover, employees, etc.). Previously, entreprises were considered active on the basis of administrative criteria: mainly the registration in the Sirene administrative business register and the administrative cessation. This change led to a significant reduction in the number of active enterprises, and significantly reduced discrepancies with the number of enterprises provided by SBS.
  • With regard to employment data: as part of the work to ensure consistency with SBS, a common source and calculation method has been applied for employment data (number of employees and number of employees and self-employed persons).

These changes mean that the data submitted from reference year 2021 are generally not comparable with those submitted for the previous reference years:

  • Due to the new definition of an active enterprise, the number of active enterprises has been significantly revised downwards. Enterprises’ births, deaths and survivals have been also revised, as their calculation is closely linked to that of active enterprises.
  • The numbers of employees and the numbers of employees and self-employed persons transmitted from the reference year 2021 are also not comparable with those of the previous reference years, due to changes in the source and in the method of calculation of the numbers of employees and self-employed persons. They are calculated in head counts.