An enterprise death is the termination of an enterprise, amounting to the dissolution of a combination of production factors with this restriction that no other enterprises are involved in the event.
Deaths do not include:
- exits from the population of active enterprises due to mergers, take-overs, break-ups or restructuring of a set of enterprises;
- exits from a sub-population resulting only from a change of activity.
The enterprise death rate of a given reference period (usually one calendar year) is the number of enterprise deaths as a percentage of the population of active enterprises.