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European profiling: a crucial tool in the current European developments on statistical units
D. FRANCOZEurostatJOINT UNECE/OECD/EUROSTAT MEETING OF THEGROUP OF EXPERTS ON BUSINESS REGISTERS3-4 September 2013, Geneva
Session 3: The role of the statistical business register in the modernisation of the statistical production and services
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Background
MEETS 4-year program to modernise business statistics• ESSnet profiling• ESSnet consistency
Conclusion: need to change the statistical implementation of the economic definition of enterprise
Current projects:• Revision of the regulation on statistical units has started
Include implementation rules
• Implementation of European profiling is going on For the largest 500 groups in Europe
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A new model of statistical units To increase consistency between European
countries in business statistics• The current definition of the enterprise is not applied
homogeneously in all EU countries• In a lot of countries, the legal unit is used as a proxy of
the enterprise
To take into account the globalisation of the economy • Current regulation on statistical units in force since 1993• The current implementation of the enterprise' definition
does not take into account the global dimension of the enterprises
• Statistics based on current enterprise are describing artifacts, and are diverging from economic reality
Why?
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A new model of statistical units To take into account the globalisation of the
economy (cont'd)• Indicators based on the legal units can lead to
misinterpretation in the frame of global enterprise groups
Misclassification of economic variables according to the NACE activity code
Double counting for some non-additive variables indicators relating 2 economic variables which are not “managed”
in the same legal unit
2 dimensions to be taken into account:• To improve the relevance of national business statistics
in the European countries • To produce better EU statistics
Why?
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Organisation of enterprise groups
Economic organisation at the worldwide level Global dimension: refers to the strategy of the group Local dimension: refers to constraints
Splitting up of the production into several legal unitsIn order to:
Reduce costs Increase competitiveness
multinational
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The new model of statistical units
Takes into account both domestic and global entities
Top down approach to delineate the enterprises• 2 geographical levels of enterprises:
The global enterprise The truncated enterprise
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The new model of statistical units
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The new model of statistical units
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The new model of statistical units
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The new model of statistical units
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The new model of statistical units
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The new model of statistical units
Indepen-dant legal
unit
DEG1
DEG2
Member state 1
GEG1
GEN11
GEN12
TEN221
ENT3
ENT11
ENT12ENT21
National ENT
ENT=DEG
ENT=autonomous part
of DEG
GEG2 GEN22GEN=GEG
GEN=autonomous part
of GEG
TEN222Non EUcountry
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The new model of statistical units
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The new model of statistical units
Allows both national approach And EU approach For data collection
Indepen-dant legal
unit
DEG1
DEG2
Member state
GEG1
GEN11
GEN12
TEN121
TEN112 TEN113
TEN221
ENT3
ENT11
ENT12
ENT21
National ENT
GEG2 GEN22
TEN111
GEN=GEG
GEN=autonomous part of
GEG
TEN222
ENT=autonomous part of
DEG
ENT=DEG
National aggregate
Consolidated EU aggregate
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The new model of statistical units
3 types of delineation:• Use of existing data
1 Legal unit=1ENT 93% of LeUs
• Automatic procedures Small or simple groups
(DEG or GEG) 5% of LeUs
• Profiling Large and complex
groups (DEG or GEG) 2% of LeUs
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European profiling
Main features
Central definition of the global and truncated enterprises • The country of the headquarters profiles for all the countries
involved
2 main options for collecting data on the enterprises• National collection (main option)
The partnering NSIs assess the enterprises defined by the country of the headquarters
– Delineation and characteristics
– Feasibility of data collection
• Central collection (for a long term perspective)
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Profiling implementation
A collaborative process
3 types of cooperation
DEFINE GEN AND TEN
ASSESS TEN
Business Statistics compilers
Business Statistics compilers
Group
profiler
profiler
H-O NSI
Partnering NSI
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Profiling implementation
A collaborative process
1-With the Group
DEFINE GEN AND TEN
ASSESS TEN
Business Statistics compilers
Business Statistics compilers
Group
profiler
profiler
H-O NSI
Partnering NSI
2-Within NSI: between profilers andBusiness statisticians
3-Between profilers in different NSIs
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European profiling
European strategy
Central organisation to help the NSIs • Development of a web platform: the IPT
For profilers to exchange information on groups under profiling For statistical users to access information on enterprises in profiled
groups
• Development of rules to smoothen the process Calendar for profiling cycle Support to NSIs in establishing an agreement for data collection with
the groups
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European profiling
Benefits
European Statistical System-wide gains• The country of the headquarters profiles for all the countries
involved• Enterprises of one group are defined consistently for all
European business statistics• Centrally defined enterprises made available for all national
statistics
Benefits for respondents• Profilers and the group talk the same language• NSIs offer the group a central contact point• Profiling decreases the response burden for a group
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Example 1
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Example 2
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Thank you for your attention
