EUROPEAN COMMISSION - EUROSTAT ESSnet on Consistency of Concepts and Methods

EUROPEAN COMMISSION - EUROSTAT

ESSnet on Consistency of Concepts and Methodsof business-related Statistics

2010 project on statistical units

n° 30121.2010.005 - 2010.405

Results of the qualitative part

of the “Inquiry on the Statistical Units”:

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The Statistical Unit “Enterprise”

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M. Consalvi – Istat (Italy)____________________________________________________________

ESSnet on Consistency – Project on Statistical Units – Workshop Riga 2012

Riga – 19th and 20th June 2012

Fiscal sources

Social Security

and Labour

sources

Statistical Sources

Legal Registers

Business Accounts

Other Sources

Turnover 71.4 0.0 39.3 7.1 10.7 7.1

Employees / Persons employed 7.1 75.0 35.7 7.1 7.1 7.1

Id variables / Localization / Legal Form 10.7 7.1 17.9 17.9 0.0 3.6

Main and secondary economic activity 17.9 10.7 42.9 25.0 3.6 17.9

Status of activity / Dates of birth and death 21.4 14.3 7.1 17.9 0.0 3.6

Main administrative / statistical sources

Main detected characteristics

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ESSnet on Consistency of Concepts and Methods of business-related Statistics. WP1 Statistical units


Respondent Countries by main administrative/statistical sources used

to implement the enterprises in the BR and main detected characteristics

(% out of 28 respondent countries)

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The Regulation N. 696/93 states that “The enterprise is the smallest

combination of legal units that is an organizational unit producing

goods or services, which benefits from a certain degree of

autonomy in decision-making, especially for the allocation of its

current resources. An enterprise carries out one or more activities

at one or more locations. An enterprise may be a sole legal unit”.

The application of each part has been investigated

Part 1

Part 3

Part 2

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Countries %No Response 2 6.5

Each identified legal unit is considered a productive unit without further analysis 4 12.9

Further analysis (multiple answer): 25 80.7

1. By using sources that identify exactly a legal unitthat exercises a productive activity 14 45.2

2. By using thresholds of one or more variables(e.g. turnover, employees,...) 13 41.9

3. By using more complex methods(deterministic/probabilistic models) 3 9.7

4. Profiling methods 11 35.5

5. Other 6 19.4

Respondent Countries by methods to apply "Part 1" of the Enterprise definition

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Part 1

53.8%

61.5%

61.5%

48 50 52 54 56 58 60 62 64

Employment

Turnover

Other (Income,wages, other

sources)

Variables used for “threshold”:

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Part 2

No of countries

%

No Response 2 6.5

1. "An enterprise has accountsat its disposal" 21 67.7

2. "The operations of an enterprise aremanaged in an integrated manner" 13 41.9

3. "Market orientation of an enterprise" 12 38.7

4. Other 8 25.8

Respondent Countries by features of “autonomy”

to apply "Part 2" of the Enterprise definition

n

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Legal Unit

...

Enterprise

Legal Unit Enterprise

Enterprise

Enterprise

Legal Unit

Legal Unit

Legal Unit...

Enterprise

Enterprise

Enterprise

...

1

1

m n

1 45.2 % (14)

38.7 % (12)

3.2 % (1)

6.5 % (2)Other relationships

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Coverage of application of “Part 3” of the Enterprise definition

No of countries

%

Criteria applied to the whole population 5 33.3

Criteria applied to a subset of units 10 66.7

of which:

- "statistical" restriction 4 40.0

- subset of particular legal form 3 30.0

- subset of particular economic activities 1 10.0

- subset by dimension 2 20.0

Subset of 15 countries one-to-one relationship

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1. LeUs carrying out ancillary activities (within an enterprise)

0 2 4 6 8 10 12

2. LeUs carrying out integrated activities (vertical/horizontal integration)

3. Separate LeUs for factors of production

4. LeUs providing shared services to more than one enterprise within an EG

5. Holding companies within a group

6. Other typologies (e.g. SPE or Artificial Subsidiaries of Corporations from SNA2008)

46.7% (7)

40% (6)

60% (9)

40% (6)

40% (6)

73.3% (11)

Typologies of LeUs to be combined/split to apply “Part 3” of the def.

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Typology of legal units AT BE DK EE ES LV NO SE

1. Legal units carrying out ancillary activities (within an enterprise) 0.01 0.35 0.00 0.002. Legal units carrying out integrated activities (vert/horiz integration) 1.29 0.00 0.04 0.133.Separate legal units for factors of production 0.01 0.014.Legal units providing shared services to more than one enterprise within an enterprise group 0.00 0.00 0.02 0.005.Holding companies within a group 0.00 0.01 0.08 0.006.Other typologies 0.53 0.05Total LeU / Total EU-EFTA 1.03 2.89 1.27 0.30 9.04 0.27 1.85 1.88



% Legal Units

% Employment

% Turnover

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According to:

High/low coverage of the “treated” units in the BR

Number of typologies of LeUs to be combined/split

Additional description of the activities performed

It was possible to classify better

the countries in terms of their

treatment of Legal Units

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% Countries

% Enterprises (out of Total

EU/EFTA)

% Employment (out of Total

EU/EFTA)

No LeUs treatment 3 10.34 4.16 4.13

No combination/split of LeUs 11 37.93 43.67 40.54

Combination/split of LeUs 15 51.72 52.17 55.33

of which:

"soft" combination 7 24.14 32.39 37.32

"strict" combination 8 27.59 19.78 18.01

Countries

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1. The use of threshold (turnover and/or employees) is the main criteria to identify enterprise from the legal units.

2. The most used criterion for “autonomy” is “an enterprise has accounts at its disposal” (68% of the NSIs)

3. Profiling methods seem to be used by 11 (35.5 %) countries.

5. Out of these countries only 8 seem to apply “strictly” the combination of LUs: 19.8 % in terms of total European enterprise, 18.0% in terms of total European employment.

4. Combination of LUs (using profiling or other methods) are performed by 15 Countries

Conclusions

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Thanks for your attention!


First results of the Inquiry – Quantitative analysis

EUROPEAN COMMISSION - EUROSTAT ESSnet on Consistency of Concepts and Methods

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