National Statistical Institute Data for Business Demography

Business » INDUSTRY | July 31, 2017, Monday // 11:08| Views: | Comments: 0
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Bulgaria: National Statistical Institute Data for Business Demography pixabay.com

Similar to statistics of human population, business demography describes the life cycle of the enterprises; their birth, survival and development until death. More specifically business demography supplies data on number of active enterprises, number of newborn enterprises, proportion of survived enterprises and data on changes in employment figures at specific moment in time. Until 2008 the data for business demography of enterprises in EU were collected on European level voluntarily bounded by gentlemen’s agreement. Bulgaria has taken part in the harmonized data collection for business demography since 2006 which includes the development of enterprises born in 2003 and in 2004. In 2010 for the first time the statistics are calculated using the new classification of economic activities NACE. The creation of EP and Council Regulation  concerning the structural business statistics was the legal foundation and the general framework for collecting, preparation, presentation and evaluation of harmonized statistical data for business demography in EU. This press release presents information gathered by the study of business demographic events among the enterprises in Bulgaria for 2015 and follows their dynamics for the 5 year study period.

The study includes enterprises classified in selected by Eurostat sectors of the classification of economic activities NACE with the exception of group 64.2 or activity of holding companies as they are defined in EU Regulation 295/2008 for Structural Business Statistics. In 2015 there were 339 175 active enterprises which are 1.9% more than 2014.

The active enterprises with zero employees  represent the largest proportion of the population of all active enterprises during the whole 2011 - 2015 period. In 2015 their number is 152 345 which are 44.9% of all active enterprises.

There are 136 133 enterprises in the next ‘1 - 4 employees’ group which is 40.1% of the total number for 2015. The enterprises in the ‘5 - 9 employees’ group represent the smallest proportion of all, shows the data of the National Statistical Institute (NSI).
On average for the whole period, this proportion is 7.4%, while in the ‘10 or more employees’ group on average for the five year period this proportion is 8.0% of the active enterprises.

The number of persons employed in ‘10 or more employees’ group represents 69.5% of all employees for the 2011 - 2015 period while the proportion of the enterprises in this group is 8.0% of all active enterprises. And, reversely - 6.3% of the total number of employees in the country corresponds to the large number of active enterprises in the zero employees group which is 44.7% of the total number of enterprises.

11.9% of the total numbers of enterprises in the selected economic sectors are newborn in 2015. For the last five years the annual average percent for newborn enterprises was 11.9% of the number of active enterprises during this period.

For the 2011 - 2015 period the highest share of newborn enterprises is in sector G - ‘Wholesale and retail trade; repair of motor vehicles and motorcycles’ with an average of 44.2% for the 5-year period. At the same time the smallest share of newborn enterprises is in sector B - ‘Mining and quarrying’ with less than 0.1% on average for the whole period. 

In 2014 the newborn enterprises are 39 333 and 31 779 of them successfully survived to 2015. The highest share of survived enterprises is in sector J - ‘Information and communication’ - 88.8%. The lowest share is in sector L - ‘Real estate activities’ - 67.2%. Since 2010, when moving away from year of birth, there is a trend of increasing the number of survived enterprises for the four employees’ groups.

Data on dead enterprises in 2014 are preliminary due to the specific methodology and definition. In 2014 the number of dead enterprises is 34 518 or 10.4% of the total number of active enterprises during the year. As result of their death more than 2.9% of the employees lost their jobs during the year. In 2014, 45.4% of dead enterprises, were classified in sector G - ‘Wholesale and retail trade; repair of motor vehicles and motorcycles’. The most viable were the enterprises in the following sectors: B - ‘Mining and quarrying’, E - ‘Water supply; sewerage, waste management and remediation activities’, D - ‘Electricity, gas, steam and air conditioning supply’, where dead enterprises are less than 1.0%

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Tags: National Statistical Institute, demography, business demography, newborn enterprices
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