Statistics Explained

Archive:European business statistics manual - scope and main concepts

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This chapter describes: (a) the scope of EU business statistics in terms of statistical population and main topics (b) the main concepts used to produce business statistics cost-effectively, while also ensuring that the final results are comparable and consistent. It is part of a more extensive online publication, the European Business Statistics Manual, which provides a comprehensive description of methodologies and background information on how these statistics are produced within the European Statistical System (ESS).

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Source: Eurostat (educ_ilang)

Introduction

This article broadly defines the business population to which the European business statistics refer and describes the main subject areas and topics covered. It also addresses several key measures for guaranteeing or improving comparability and consistency of data, both across the various domains of business statistics, and also in relation to the frameworks used for national accounts and the balance of payments. The article includes a selected topic covering a number of consistency and coverage issues in business statistics related to globalisation.

Scope of business statistics

Article 3(1) of the FRIBS Regulation states that European business statistics cover:

a) the structure, economic activities and performance of the statistical units, their research and development and innovation activities, their ICT usage, e-commerce and global value chains
b) the production of manufactured goods and services and the international trade in goods and services.

The structure describes how output, employment and other indicators are distributed among different economic sectors.

The term 'economic activities' is defined by NACE Rev.2 (paragraph 1.2.11):

‘An economic activity takes place when resources such as capital goods, labour, manufacturing techniques or intermediary products are combined to produce specific goods or services. Thus, an economic activity is characterised by an input of resources, a production process and an output of products (goods or services)’.

From an economic point of view, the definition of economic activity mirrors the production function of output and production factors. Besides current manufacturing techniques as a production factor, the production function[1] also includes technological progress, the drivers of which are also mentioned in paragraph (a): R&D, innovation, ICT and e-commerce.

Performance, on the other hand, relates to the interaction between a business and other economic actors. Economically relevant interactions recorded in business accounting include sales, purchases, labour costs, wages and prices. Together, they provide a measure of value added, that is, the value created by businesses, and thereby of these businesses’ contribution to economic growth. The focus is on business performance under market conditions of demand and supply, and price setting.

The global value chains referred to in paragraph (a) represent the impact of globalisation on the economy, and its implications for statistics. Traditional statistical units and trade and business statistics give only a limited national perspective and do not provide users with a comprehensive analytical framework. For more information, see section 7, ‘Globalisation and potential impacts on consistency and coverage in business statistics’.

Naturally, at a more detailed level the subject areas — the topics covered by business statistics — target the variables that are most relevant to external stakeholders (e.g. policymakers, businesses and business federations), but also to internal stakeholders which use these data as building blocks in producing the national accounts and the balance of payments (see section 6).

For a detailed description of the scope of the various business statistics under the FRIBS Regulation, see data requirements[2].

Data sources and availability

<description of data sources, survey and data availability (completeness, recency) and limitations>

Context

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See also

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Further Eurostat information

Data visualisation

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Publications

Publications in Statistics Explained (either online publications or Statistics in focus) should be in 'See also' above

Main tables

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Database

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Dedicated section

Methodology / Metadata

<link to ESMS file, methodological publications, survey manuals, etc.>

Source data for tables, figures and maps (MS Excel)

Other information

<Regulations and other legal texts, communications from the Commission, administrative notes, Policy documents, …>

  • Regulation (EC) No 1737/2005 (generating url [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32005R1737:EN:NOT Regulation (EC) No 1737/2005]) of DD Month YYYY on ...
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<For other documents such as Commission Proposals or Reports, see EUR-Lex search by natural number>

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External links

Notes

  1. The production function can be represented in a simplified form as Y = F[K, L, M, t], where Y = output, F = function transforming inputs to outputs (e.g. manufacturing techniques), K = capital stock, L = labour, M = material/intermediary products and services, t = technological progress.
  2. The stakeholder’s interest is apparent not only as regards the variables, but also as regards the degree of granularity of data (i.e. breakdowns). The analytical value for end-users is taken into account as one of the main criteria (see section 2 of ‘Classifications in business statistics’) when developing classifications (used for these breakdowns).



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