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:

busreg@cso.iejillian.delaney@cso.ie