- Methods and Projects
- Standards and Classifications
Standardised Methodological Report
Harmonized Business Demographics
- 1Contact
- 1.1Contact organisation
National Statistics Institute of Spain
- 1.5Contact mail address
Avenida de Manoteras 50-52 - 28050 Madrid
- 1.1Contact organisation
- 2Metadata update
- 2.1Metadata last certified
07/11/2023
- 2.2Metadata last posted
10/11/2022
- 2.3Metadata last update
07/11/2023
- 2.1Metadata last certified
- 3Statistical presentation
- 3.1Data description
The overall objective of the Harmonized Business Demography is to provide aggregated information regarding the population of enterprises located in the national territory, considering the aspects linked to business dynamism and applying a methodology as agreed within the scope of the European Union. This methodology provides the guidelines that enable identifying populations and generating indicators regarding the stock, births, deaths and survivals of enterprises, through a harmonised statistical operation on the Business Registers (Central Business Register or CBR in our case) managed in Statistics Offices.
The prior categorisation of the set of units entering, staying and leaving the system constitutes the basic initial subpopulations. In addition, it is necessary to consider the activity status of the units in historical versions of the CBR, in order to delimit survivals following a number of years.
The time reference considered for the demographic information corresponds to the calendar year, a requirement that is compatible with the update period of the CBR.
The delimitation of populations of interest is carried out by means of an ordered set of procedures varying in nature, designed in accordance with the harmonized methodology principles. Basically, the work is geared to identify the following aggregates:
- Stock of enterprises
- Enterprise births
- Enterprise deaths
- Surviving enterprises
- 3.2Classification system
- Clasificaciones utilizadas
For each demographic category identified, listed below are the classification variables and the modalities adopted for each one of them.
1. LEGAL FORM. It is obtained from the first character of the tax identifier (N.I.F.) corresponding to the legal unit used as legal support in the case of simple enterprises, or to the legal unit most representative in terms of employment in the case of complex enterprises. Not applicable to surviving enterprises. The following modalities have been considered:
- Sole proprietors
- Limited Liability Companies
- Partnerships and other legal forms
2. SIZE CLASS. The following categories have been considered:
- 0 employees
- 1 to 4 employees
- 5 to 9 employees
- 10 and more employees
3. MAIN ECONOMIC ACTIVITY CODE. The level of detail corresponding to NACE Rev. 2 Divisions (2 digits).
4. AUTONOMOUS COMMUNITY. The national data on the stock, enterprise births and deaths have been broken down by Autonomous Communities and Cities, according to the region where the enterprises headquarters are located. Autonomous Communities and Cities are named according to the standards of our NSI.
- Clasificaciones utilizadas
- 3.3Sector coverage
This statistical operation covers all economic activities of NACE Rev. 2, except for Agriculture, forestry and fishing (Section A), Public administration and defence; compulsory social security (Section O), Activities of households as employers of domestic staff (Section T) and Activities of extraterritorial organizations and bodies (Section U). Similarly, activities of membership organisations (NACE Rev. 2 division 94) and units non-market oriented, have been excluded.
- 3.4Statistical concepts and definitions
- Births of enterprises
Set of units that, throughout the reference year, have created a combination of new production factors. There is no connection with other previously existing enterprises.
- Company
The company 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. A company carries out one or more activities at one or more
locations. A company may be a sole legal unit. - Deaths of enterprises
Set of units which, over the course of the reference year, have dissolved all of their production factors. They are not connected to other companies that may have begun operation.
- Stock of enterprises
Set of units that have been economically active during all or part of the reference year. This includes those enterprises that are economically active at the end of the period, plus those enterprises that have totally ceased their activities throughout that period.
- Survival of enterprises
Survival of enterprises.- Restricted to the cohort of births, this corresponds to the set of units that continue to be economically active in each of the five years following that of birth.
- Births of enterprises
- 3.5Statistical unit
Business Demography data are obtained for the statistical unit enterprise.
The definition of enterprise applied is according to that reflected in Council Regulation 696/93. For the aggregate of surviving enterprises it has been possible to apply that definition to the cohorts of enterprises born in 2018, 2019 and 2020, because the cohorts of enterprises born before 2018 were built on the base of a former definition of enterprise prevailing the legal aspects.
According to Regulation 696/93, an enterprise is defined as the smallest combination of legal units that is an organisational unit producing goods or services, which benefits from a certain degree of autonomy in decision-making, especially for the allocation of its current resources.
- 3.6Statistical population
Set of enterprises located in the national territory, both employers and non-employers, with economic activities unther sectoral coverage. They are enterprises having turnover or employment some time during the period of reference, and therefore, they appear in the statistical business register (CBR in our case).
- 3.7Reference area
The entire national territory.
National data on stock of enterprises, enterprise births and enterprise deaths are broken down by Autonomous Communities and Cities.
- 3.8Time coverage
From 2008 to 2021.
- 3.9Base period
The first period with available data corresponds to the calendar year 2008.
- 3.1Data description
- 4Unit of measure
- 4.1Unit of measure
Number of enterprises.
- 4.1Unit of measure
- 5Reference period
- 5.1Reference period
The calendar year.
Data referred to the period: Anual A: 2021
- 5.1Reference period
- 6Institutional mandate
- 6.1Legal acts and other agreements
The compilation and dissemination of the data are governed by the Statistical Law No. 12/1989 "Public Statistical Function" of May 9, 1989, and Law No. 4/1990 of June 29 on “National Budget of State for the year 1990" amended by Law No. 13/1996 "Fiscal, administrative and social measures" of December 30, 1996, makes compulsory all statistics included in the National Statistics Plan. The National Statistical Plan 2009-2012 was approved by the Royal Decree 1663/2008. It contains the statistics that must be developed in the four year period by the State General Administration's services or any other entity dependent on it. All statistics included in the National Statistics Plan are statistics for state purposes and are obligatory. The National Statistics Plan 2021-2024, approved by Royal Decree 1110/2020, of 15 December, is the Plan currently implemented. This statistical operation has governmental purposes, and it is included in the National Statistics Plan 2021-2024. (Statistics of the State Administration).
In the National Statistical Plan 2021-2024, and in the Annual Programme of 2023, Harmonized Business Demography appears with number 8282.
Currently, stadistical data on Business Demography have been included in the Regulation (EU) 2019/2152 of the European Parliament and of the Council of 27 November 2019 on European business statistics, which requires of all Members States to provide information on Business Demography with annual periodicity. In the following URL that regulation is available in English:
eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019R2152
- 6.2Data sharing
The exchanges of information needed to elaborate statistics between the INE and the rest of the State statistical offices (Ministerial Departments, independent bodies and administrative bodies depending on the State General Administration), or between these offices and the Autonomic statistical offices, are regulated in the LFEP (Law of the Public Statistic Function). This law also regulates the mechanisms of statistical coordination, and concludes cooperation agreements between the different offices when necessary.
Harmonized Business Demography is compiled with information coming from the statistical business register, which is managed by the Unit of CBR, that is where the producers of this statistic are integrated.
- 6.1Legal acts and other agreements
- 7Confidentiality
- 7.1Confidentiality - policy
The Statistical Law No. 12/1989 specifies that the INE cannot publish, or make otherwise available, individual data or statistics that would enable the identification of data for any individual person or entity. Regulation (EC) No 223/2009 on European statistics stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society
- 7.2Confidentiality - data treatment
INE provides information on the protection of confidentiality at all stages of the statistical process: INE questionnaires for the operations in the national statistical plan include a legal clause protecting data under statistical confidentiality. Notices prior to data collection announcing a statistical operation notify respondents that data are subject to statistical confidentiality at all stages. For data processing, INE employees have available the INE data protection handbook, which specifies the steps that should be taken at each stage of processing to ensure reporting units' individual data are protected. The microdata files provided to users are anonymised.
In this statistical operation no datum is considered as confidential.
- 7.1Confidentiality - policy
- 8Release policy
- 8.1Release calendar
The advance release calendar that shows the precise release dates for the coming year is disseminated in the last quarter of each year.
- 8.2Release calendar access
The calendar is disseminated on the INEs Internet website (Publications Calendar)
- 8.3User access
The data are released simultaneously according to the advance release calendar to all interested parties by issuing the press release. At the same time, the data are posted on the INE's Internet website (www.ine.es/en) almost immediately after the press release is issued. Also some predefined tailor-made requests are sent to registered users. Some users could receive partial information under embargo as it is publicly described in the European Statistics Code of Practice
- 8.1Release calendar
- 9Frequency of dissemination
- 9.1Frequency of dissemination
Annual.
- 9.1Frequency of dissemination
- 10Accessibility and clarity
- 10.1News release
The results of the statistical operations are normally disseminated by using press releases that can be accessed via both the corresponding menu and the Press Releases Section in the web
- 10.2Publications
Along with the detailed data, a Press Note, a Graphic Annex, a Standardized Methodological Report and a document on General Methodology are released.
- 10.3On-line database
INEbase is the system the INE uses to store statistical information on the Internet. It contains all the information the INE produces in electronic formats. The primary organisation of the information follows the theme-based classification of the Inventory of Statistical Operations of the State General Administration . The basic unit of INEbase is the statistical operation, defined as the set of activities that lead to obtaining statistical results on a determined sector or subject based on the individually collected data. Also included in the scope of this definition are synthesis preparation.
The information contained in INEbase for Harmonized Business Demography refered to 2021, is as follows:
Series1: Stock, births and deaths of enterprises. National and Autonomous Communities and Cities results
1.1 Stock of enterprises by Autonomous Communities and Cities, main activity (NACE Rev. 2 divisions) and size class.
1.2 Stock of enterprises by Autonomous Communities and Cities, main activity (NACE Rev. 2 divisions) and legal form.
1.3 Enterprise births by Autonomous Communities and Cities, main activity (NACE Rev. 2 divisions) and size class.
1.4 Enterprise births by Autonomous Communities and Cities, main activity (NACE Rev. 2 divisions) and legal form.
1.5 Provisional enterprise deaths by Autonomous Communities and Cities, main activity (NACE Rev. 2 divisions) and size class.
1.6 Provisional enterprise deaths by Autonomous Communities and Cities, main activity (NACE Rev. 2 divisions) and legal form.Series 2: Surviving enterprises. National results
2.1 Surviving enterprises born in 2016 by main activity (NACE Rev. 2 divisions) and year.
2.2 Surviving enterprises born in 2017 by main activity (NACE Rev. 2 divisions) and year.
2.3 Surviving enterprises born in 2018 by main activity (NACE Rev. 2 divisions) and year.
2.4 Surviving enterprises born in 2019 by main activity (NACE Rev. 2 divisions) and year.
2.5 Surviving enterprises born in 2020 by main activity (NACE Rev. 2 divisions) and year.All the information regarding Harmonised Business Demography is available via INEbase, section Economy/Companies and in the following link:
INEbase / Economy /Companies /Harmonized Business Demography / Latest data
- 10.4Micro-data access
A lot of statistical operations disseminate public domain anonymized files, available free of charge for downloading in the INE website Microdata Section
Microdata dissemination is not applicable for this statistical operation.
- 10.5Other
Through the INE User Information Area, users may request specific tailored information which is carry out after a mandatory feasibility study that guarantees confidentiality and data quality. This service may be accessed through the following link: https://www.ine.es/prodyser/informacion.
- 10.6Documentation on methodology
In INEbase are available a Standardized Methodological Report and a document on General Methodology. Both may be viewed at the following link:
INEbase / Economy /Companies /Harmonized Business Demography / Methodology
- 10.7Quality documentation
Quality of these and other data on Business Demography referred to 2021, will be analysed by Eurostat regarding Regulation (EU) No. 275/2010 of the Commission of 30 March 2010 implementing Regulation (EC) No. 295/2008 of the European Parliament and the Council, as regards the criteria of data quality assesment for business structural statistics.
This standardized methodological report contains all of the elements of what is considered a "User-oriented quality report" for this operation.
- 10.1News release
- 11Quality management
- 11.1Quality assurance
Quality assurance framework for the INE statistics is based on the ESSCoP, the European Statistics Code of Practice made by EUROSTAT. The ESSCoP is made up of 16 principles, gathered in three areas: Institutional Environment, Processes and Products. Each principle is associated with some indicators which make possible to measure it. In order to evaluate quality, EUROSTAT provides different tools: the indicators mentioned above, Self-assessment based on the DESAP model, peer review, user satisfaction surveys and other proceedings for evaluation.
The quality of this statistical operation previously lays in achieving high quality standards in the statistical Business Register (CBR). The compilation process of this statistical register has established mechanisms for the detection and correction of errors. These controls are carried out from a static perspective (internal consistency of data regarding a specific reference period) as well as from a dynamic perspective (time analysis of the aggregates). The computer tools used, allow detecting all the possible formal quality errors of the information.
Besides, in this statistical operation specific control proceedings are applied, as those intended to detect false births and false deaths of enterprises, that refer to simple redistributions of production factors. In order to improve the quality when delimiting populations of enterprise births and deaths, all enterprises with 100 and more employees are comprehensively monitor and analysed, along with those enterprises having less employment but having a turnover of more than 10 millions euros. The relative weight of this population in the business frame justifies the development of special control operations in order to suitably classify movements associated with these units. Thus, standard procedures are supplemented with validation operations aimed at capturing pertinent information regarding the causes associated with the phenomena of birth and death, which normally requieres querying specialised databases (Mercantile Register and others) or access to websites. Additionally, on the population of births and deaths of simple enterprises with more than 19 and less than 100 employees (and having turnover higher than euros 3,000,000) and of complex enterprises with more than 39 and less than 100 employees (and having turnover higher than euros 6,000,000), a random cleaning is applied based on the results of a survey that CBR Unit set in 2001 in order to measure the proportion of false births and deaths of enterprises.
- 11.2Quality assessment
Harmonized Business Demography presents some strong points worth mentioning. First, it should be noted that this statistical operation involve no burden on the enterprises, since it is the result of an specific operation on the statistical Business Register. Likewise, standard proceedings are faithfully followed. These standards are stipulated in the harmonized methodology established in order to elaborate this statistic, gathered in "Eurostat-OECD Manual on Business Demography Statistics". The application of these harmonized proceedings is what allows to offer comparisons in an international scope with a high level of solvency.
- 11.1Quality assurance
- 12Relevance
- 12.1User needs
This statistic is used mainly by analysts interested on measuring real processes of creation, survival and destruction of production factors, somewhat that goes beyond the simple count of registrations and cancellations of legal units in the statistical business register, and that, therefore, need a specific treatment.
The application of a specific methodology implemented through a series of computer processes on the last update of the business register, imply that data are generated with some delay in comparison with the reference period.
- 12.2User satisfaction
The INE has carried out general user satisfaction surveys in 2007, 2010, 2013, 2016 and 2019 and it plans to continue doing so every three years. The purpose of these surveys is to find out what users think about the quality of the information of the INE statistics and the extent to which their needs of information are covered. In addition, additional surveys are carried out in order to acknowledge better other fields such as dissemination of the information, quality of some publications...
On the INE website, in its section Methods and Projects / Quality and Code of Practice / INE quality management / User surveys are available surveys conducted to date.(Click next link)
.
- 12.3Completeness
This statistical operation provides all information requested by the National Statistical Plan. The level of completeness is of 100%.
R1=100%
- 12.1User needs
- 13Accuracy and reliability
- 13.1Overall accuracy
Global accuracy would be consecuence of the strength of the management and maintenance model of the statistical business register CBR, that is the data source. In particular, it should be mentioned the control processes on the annually entering, staying and leaving units, obtained from the detected movements in the administrative sources that provide information to the CBR. Although the analysis of movements from administrative sources provides an initial preview of units renewal processes, the statistical work to be carried out for obtaining harmonized demographic indicators demands an additional effort, contributing added value to the administrative information.
- 13.2Sampling error
Not applicable, being data obtained from information recorded in the CBR.
Research is exhaustive, thus no sampling errors can occur.
- 13.3Non-sampling error
During the verification control of all births of enterprises with 100 or more employees, or when controlling enterprises having less than 100 employees but having a turnover of more than 10 millions euros, 87 cases were analysed, of which 36 (41.4%) were considered false births. In addition, a random cleaning was made of 398 cases (56.2%) on 708 simple or complex enterprise births having between 20 and 99 employees and that complied other requirements.
Similarly, during the verification control of all the deaths of enterprises with 100 or more employees, or when controlling enterprises having less than 100 employees but having a turnover of more than 10 millions euros, 103 cases were analysed, of which 57 (55.3%) were considered false deaths. Also a random cleaning was made of 369 cases (59.2%) on 623 simple or complex enterprise deaths having between 20 and 99 employees and that complied other criteria.
- 13.1Overall accuracy
- 14Timeliness and punctuality
- 14.1Timeliness
Community EBS regulation requieres availability of results in a term of 18 months from the end of the reference period. This target is achieved in every June, but for releasing it in INEbase some specific treatments are needed, as the ones referred to regional breakdown and production of graphs, that lead dissemination to November (t+23 months).
TP2=23 months
- 14.2Punctuality
Dissemination of results is carried out in accordance with the availability calendar of structural statistics that INE compiles and publishes each year.
TP3=0
- 14.1Timeliness
- 15Coherence and Comparability
- 15.1Comparability - geographical
Elements of territorial coverage of CBR allow to guarantee comparability of produced data in its breakdown by Autonomous Communities and Cities. Besides, Regulation (EU) 2019/2152 (EBS Regulation) is an harmonising element that allows comparability of these data within the European Union.
- 15.2Comparability - over time
Data referred to 2018, 2019 and 2020 are not fully comparable with those referred to previous years because of the adaption to the concept of enterprise reflected in Council Regulation No 696/1993.
Nevertheless, since the first reference year with data available (2008) up to this last one (2021), the same classification variables have always been used (NACE Rev. 2, size class according to the number of employees and legal form) with the same categories foreseen. Likewise, it should be pointed out that for the year 2008 no breakdown by Autonomous Communities and Cities was made in data on stock, births and deaths of enterprises.
Moreover, due to the entry into force of the Regulation EBS 2019/2152 and its Implementation Act 2020/1197, the statistic on Business Demography has adopted some methodological changes for the reference year 2021 leading to results that are not completely comparable with those of previous periods. These changes affect to the calculation of the number of economically active enterprises.
CC2=1 year
- 15.3Coherence - cross domain
The highest degree of coherence of these data is related to those named CBR movements disseminated in the statistical operation Statistical use of CBR, where legal units that enter, stay and leave, are annually counted, according to the movements detected in the administrative sources, that provide information. However, Business Demography analysis is not limited to just quantify the flows obtained during the processes of updating the Business Register, since although movements of administrative sources offer a first approach to units' renewal processes, the statistical work to be carried out for obtaining Business Demographic indicators demands an additional effort, contributing added value to the administrative information.
- 15.4Coherence - internal
Data are coherent regarding its breakdown by NACE Rev. 2 divisions, size class according to the number of employees, legal form and Autonomous Communities and Cities.
- 15.1Comparability - geographical
- 16Cost and burden
- 16.1Cost and burden
The estimation of the budgetary credit necessary to finance this statistical operation, as foreseen in 2023 Annual Programme, comes to a total of 53.22 thousand euros.
Due to the specific characteristic of this operation, there is no burden for the informants, as it consists in one operation on information just recorded in the CBR.
- 16.1Cost and burden
- 17Data revision
- 17.1Data revision - policy
The INE of Spain has a policy which regulates the basic aspects of statistical data revision, seeking to ensure process transparency and product quality. This policy is laid out in the document approved by the INE board of directors on 13 March of 2015, which is available on the INE website, in the section "Methods and projects/Quality and Code of Practice/INE’s Quality management/INE’s Revision policy" (link).
This general policy sets the criteria that the different type of revisions should follow: routine revision- it is the case of statistics whose production process includes regular revisions-; more extensive revision- when methodological or basic reference source changes take place-; and exceptional revision- for instance, when an error appears in a published statistic-.
- 17.2Data revision - practice
There is no data revision, although data relative to enterprise deaths are provisional, since those deaths are considered definitive after two years from the reference period. It is necessary to exclude enterprises that reactivate in the two years following the year when they die. That control on reactivated enterprises may be performed for year t+1 but no for t+2, as that period matches with the natural year of 2023, which have not concluded in the moment of disseminating the data in INEbase and on which obviously no corresponding update of CBR is available. The data appearing in tables are estimated by taking enterprise deaths detected in 2021 and that have not been reactivated in 2022. On that base population, a random exclusion of a small percentage of units is performed, in accordance with the experience of previous years on reactivations in the second year. The results show differences between final and provisional data, which are irrelevant.
- 17.1Data revision - policy
- 18Statistical processing
- 18.1Source data
Data source of Harmonized Business Demography referred to year 2021 is the Central Business Register (CBR) updated with date of 1 January 2022, being result of registered flows during 2021.
- 18.2Frequency of data collection
Annual.
- 18.3Data collection
Due to it is not a survey, no data collection exists on respondent units. The statistical operation consists of a specific use of information just contained in the CBR.
- 18.4Data validation
The procedures applied allow to approach the methodological specifications in order to delimit the stock of enterprises, enterprise births, enterprise deaths and surviving enterprises, specially regarding the exclusions in each case.
Correct delimitation of the demographic categories demands the incorporation of, at least, the following procedures:
- Detection and removal of units that enter / leave as a result of production factors redistributions (mergers, take-overs, break-ups, split-offs, ...), because they are false births and false deaths.
- Criteria of statistical continuity (legal support, main economic activity and main location in the case of simple enterprises, and the employment factor belonging to common legal units between two consecutive periods in the case of complex enterprises).
- Special monitoring of large companies.
Errors of false enterprise births and false enterprise deaths may exist, in the sense that they are no real creations or dissolutions of production factors. In order to reduce these errors, all enterprises with 100 and more employees are monitor and analysed exhaustively, along with those enterprises having less employment but having a turnover of more than 10 millions euros. The relative weight of this population in the business frame justifies the development of special control operations in order to suitably classify movements associated with these units. The technics of data processing are complemented with verification operations intended to capture relevant information on the cause associated to the events of birth and death, which normally demands to query specialised databases (Mercantile Register or others) or access to websites. Besides, on populations of births and deaths of simple or complex enterprises having between 20 and 99 employees and that complied other criteria, a random cleaning is made, based in the results of a survey that CBR Unit implemented in 2001 in order to quantify the proportion of false births and false deaths of enterprises.
- 18.5Data compilation
In order to delimit real enteprise births and deaths from entering and leaving legal units in the CBR as well as to treat surviving enterprises, there are applied computer programs designed to fulfil the methodological specifications and the validation controls shown in the previous point.
Aggregates are compiled by automatic procedures with standardised software products and regularly used in INE (SAS, PCAxis, ...).
- 18.6Adjustment
Due to it is an operation on information just recorded in the CBR, no seasonal or calendar adjustments are made.
- 18.1Source data
- 19Comment
- 19.1Comment
.
- 19.1Comment