Changes in the Structure of the Business Population 2006-2009

1. Changes in the Structure of the Business Population 2006-2009 Business Demography Jillian Delaney 29 September 2011

2. 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

3. 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

4. How to produce Business Demography? Use of Administrative Data for producing Business Demography

5. 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

6. Employment Data: P35 Returns Advantages 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 • Highly accurate measured by comparison with survey returns • Full coverage of every employer

7. Non-Employing Enterprises: Administrative Data Available Corporation Tax / Income Tax returns 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 • Concept close to turnover • Time lag 15 months after end of reference year

8. 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.

9. 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

10. Results Employment and Enterprise Population Changes

11. Employees in Active Enterprises by Year, Business Economy

12. Employees in Active Enterprises by Sector and Year

13. Active Enterprises by Sector and Year

14. Employees in Active Enterprises in Construction by Size Class and Year

15. Employees in Active Enterprises in Information and Communication by NACE group and Year

16. Employees in Active Enterprises in Real Estate by NACE group and Year

17. Results Enterprise Births and Related Employment

18. Enterprise Births by Year and Size Class

19. Employees in Enterprise Births by Year and Size Class

20. Enterprise Births by Sector and Year

21. Persons Engaged in Birthed Enterprises by Sector and Year

22. Persons Engaged in New Births that Survived One Year by Sector and Year

23. Conclusion • Wealth of detailed data available for research • Highly dependant on administrative data • Feedback and queries are welcome to: busreg@cso.ie jillian.delaney@cso.ie