Changes in the Structure of the Business Population 2006-2009
Business DemographyJillian Delaney
29 September 2011
What is Business Demography?
The Business Demography release contains:• Numbers of active enterprises• Employment data• Changes in enterprise population:– Newly birthed enterprises– Ceased enterprises– Enterprise survivals
Business Demography Data
• Data currently available for years:– 2006 – 2007– 2008– 2009
• Internationally comparable methodology• Required under EU legislation• Available on CSO website:
http://cso.ie/shorturl.aspx/80
How to produce Business Demography?
Use of Administrative Data for producing Business Demography
Use of Administrative Data for Business Demography
• Traditional survey methods won’t work– Coverage of full business population required– Births data focuses on small new enterprises
• Good quality Business Register required– Based on administrative data– Accurate employment figures– Indicate activity for non-employers– Identify enterprises active for each year
Employment Data: P35 Returns
Advantages• Highly accurate
measured by comparison with survey returns
• Full coverage of every employer
Disadvantages• No beginning and end
dates for employees• No part time / full time
breakdown• Time lag of 11 months after
end of reference year• All employees in an
enterprise group may be filed against one enterprise, but on different survey returns
Non-Employing Enterprises: Administrative Data Available
Corporation Tax / Income Tax returns
• Concept close to turnover
• Time lag 15 months after end of reference year
VAT returns• Limited coverage of
turnover, but very good coverage of amounts of VAT paid on sales
• VAT exempt industries not included
• Files received quarterly• Data not available for full
calendar year
Business Demography Data Extraction Method
• Administrative data from P35, VAT, CT and IT extracted for each reference year available
• Dataset of all tax units active in each reference year created
• Linked up to Business Register to add NACE code, legal form, geographical information
• Early version created using older CT and IT returns, updated once CT and IT files received.
Issues with Estimating Enterprise Births and Deaths
• A new birth usually requires a new tax registration• But new tax registration doesn’t always mean a new
birth, e.g.– Changes of ownership– Group restructuring
• Also, tax de-registration may not mean an enterprise death, e.g.– Takeover– Merger
Results
Employment and Enterprise Population Changes
Employees in Active Enterprises by Year, Business Economy
2006 2007 2008 20091050000
1100000
1150000
1200000
1250000
1300000
1350000
1400000
1450000
Employees in Active Enterprises by Sector and Year
2006 2007 2008 20090
50000
100000
150000
200000
250000
300000
350000
400000
Manufacturing (C)Construction (F)Wholesale and retail trade; repair of motor ve-hicles and motorcycles (G)Transportation and storage (H)Accommodation and food service activities (I)Information and communication (J)Financial and insurance activities excluding activi-ties of holding companies (K-642)Professional, scientific and technical activities (M)Administrative and support service activities (N)
Active Enterprises by Sector and Year
2006 2007 2008 20090
10000
20000
30000
40000
50000
60000
70000
Manufacturing (C)Construction (F)Wholesale and retail trade; repair of motor ve-hicles and motorcycles (G)Transportation and storage (H)Accommodation and food service activities (I)Information and communication (J)Financial and insurance activities excluding activi-ties of holding companies (K-642)Real estate activities (L)Professional, scientific and technical activities (M)Administrative and support service activities (N)
Employees in Active Enterprises in Construction by Size Class and Year
2006 2007 2008 20090
20000
40000
60000
80000
100000
120000
1-4 employees5-9 employees10 or more employees
Employees in Active Enterprises in Information and Communication by NACE group and Year
2006 2007 2008 20090
2000
4000
6000
8000
10000
12000
14000
16000
18000
Publishing activities (58)Telecommunications (61)Computer programming activities (6201)Computer consultancy activities (6202)
Employees in Active Enterprises in Real Estate by NACE group and Year
2006 2007 2008 20090
1000
2000
3000
4000
5000
6000
7000
Renting and operating of own or leased real es-tate (6820)Real estate agencies (6831)Management of real estate on a fee or contract basis (6832)
Results
Enterprise Births and Related Employment
Enterprise Births by Year and Size Class
2006 2007 2008 20090
2000
4000
6000
8000
10000
12000
14000
16000
0 employees1-4 employees5-9 employees10 or more employees
Employees in Enterprise Births by Year and Size Class
2006 2007 2008 20090
500
1000
1500
2000
2500
3000
3500
4000
4500
1-4 employees5-9 employees10 or more employees
Enterprise Births by Sector and Year
2006 2007 2008 20090
1000
2000
3000
4000
5000
6000
7000
Construction (F)Wholesale and retail trade; repair of motor ve-hicles and motorcycles (G)Professional, scientific and technical activities (M)
Persons Engaged in Birthed Enterprises by Sector and Year
2006 2007 2008 20090
1000
2000
3000
4000
5000
6000
7000
Manufacturing (C)Construction (F)Wholesale and retail trade; repair of motor ve-hicles and motorcycles (G)Transportation and storage (H)Accommodation and food service activities (I)Information and communication (J)Financial and insurance activities excluding activi-ties of holding companies (K-642)Real estate activities (L)Professional, scientific and technical activities (M)Administrative and support service activities (N)
Persons Engaged in New Births that Survived One Year by Sector and Year
2007 2008 20090
2000
4000
6000
8000
10000
12000
Construction (F)Wholesale and retail trade; repair of motor ve-hicles and motorcycles (G)Accommodation and food service activities (I)Professional, scientific and technical activities (M)
Conclusion
• Wealth of detailed data available for research• Highly dependant on administrative data• Feedback and queries are welcome to:
[email protected]@cso.ie