June 19, 2007Montréal ICES-III June 19, 20071 Third International Conference on Establishment...

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June 19, 2007 Montréal ICES-III June 19, 2007 1 Third International Conference on Establishment Surveys Introductory Overview Lecture Statistical Business Register Content, Place and Role in Economic Statistics Jean Ritzen, Statistics Netherlands

Transcript of June 19, 2007Montréal ICES-III June 19, 20071 Third International Conference on Establishment...

Page 1: June 19, 2007Montréal ICES-III June 19, 20071 Third International Conference on Establishment Surveys Introductory Overview Lecture Statistical Business.

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Third International Conference on Establishment Surveys

Introductory Overview Lecture

Statistical Business Register

Content, Place and Rolein

Economic Statistics Jean Ritzen, Statistics Netherlands

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Content of the lecture

1. Introduction

2. Modeling society: several and different views

3. Why and what a business register

4. Difference between an administrative BR and a statistical BR (administrative: instruments for control and governance)

5. Basic content and requirements of SBR

6. Goals and uses in statistics

7. Challenges

8. Some figures

9. Discussion

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Modeling society

• Social order

• Social structure

• Social processes

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Modeling society

• Social order

• Social structure

• Social processes

Several and different views

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Modeling society

• Social order

• Social structure

• Social processes

Several and different views

• Economic order

• Economic structure

• Economic processes

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Modeling society

• Social order

• Social structure

• Social processes

Several and different views

• Economic order

• Economic structure

• Economic processes

Economic Statistics

e.g. economic view

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Economic Statistics

• Statistics describing the structure of the economy: number and kind of elements/entities

• Consumers

• Producers of goods and/or services (incl. government)

• Financing units

• Statistics describing the economic processes: Interaction between elements (real and/or monetary)

• Consuming processes

• Producing processes

• Financing processes

• Relationships with abroad

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Economic Statistics

• Statistics describing the structure of the economy: number and kind of elements/entities

• Consumers

• Producers of goods and/or services (incl. government)

• Financing units

• Statistics describing the economic processes: Interaction between elements (real and/or monetary)

• Consuming processes

• Producing processes

• Financing processes

• Relationships with abroad

Economic

cycle

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Economic Statistics

Conceptual frames:

• System of National Accounts (SNA)

• European System of Accounts (ESA)

Describing:

• Types and definitions of entities (economic/statistical units)

• Types and definitions of transactions/flows between entities

• Classifications to be distinguished and applied

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Economic Statistics

Operational infrastructural frames and metadata systems

• Population (survey) frames

• Business (survey) frames

• Institutional sector classification

• Industrial classification (kind of activities)

• Classification of changes

• Definitions of entities/units

• Definitions of terms

• Size-classifications (turnover/employment)

• Other, e.g. editing and processing rules

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Business (Survey) Frames

Most known and important one:

Statistical Business Register:

A full and comprehensive list of all entities, institutionally and formally involved in production and financing processes of the economy to facilitate and support the collection of statistical data and the compilation and dissemination of statistical information.

The entities are standardized according the operational frame of definitions of appropriate units.

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Statistical Business Register (1) The SBR is the infrastructural backbone in system of

economic statistics:

• Population frame for business statistics

• List of units and characteristics

• Rules and procedures for co-ordination of statistics

• Basic reference information

• Part of surveying methodology

• Sampling procedures and grossing up procedures

• Frame/tool for survey management and survey control

• Frame/tool for control of administrative burden

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Statistical Business Register (2)

More complex than a register of natural persons and/or households because of the many ways of manifestation of units in the real world, e.g. many kinds of legal forms and ways of being organized.

Need for standardization into (objective) statistical units:

• Enterprise group

• Enterprise

• Local unit

Statistical units appropriate for registration

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Statistical Units

The EU-list of statistical units of the production system (according EU-regulation):

A. the enterprise;

B. the institutional unit;

C. the enterprise group;

D. the kind-of-activity unit (KAU);

E. the unit of homogeneous production (UHP);

F. the local unit;

G. the local kind-of-activity unit (local KAU);

H. the local unit of homogeneous production (local UHP).

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EU Statistical units: relationships

EG

UHP

IU

Enterprise Legal Unit

KAU

Local KAU Local UHP

Local Unit

Statistical World Administrative World

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Statistical units: definitions*

A. the enterprise: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.

C. the enterprise group:An enterprise group is an association of enterprises bound together by legal and/or financial links. A group of enterprises can have more than one decision-making centre, especially for policy on production, sales and profits. It may centralize certain aspects of financial management and taxation. It constitutes an economic entity which is empowered to make choices, particularly concerning the units which it comprises.

F. the local unit:The local unit is an enterprise or part thereof (e.g. a workshop, factory, warehouse, office, mine or depot) situated in a geographically identified place. At or from this place economic activity is carried out for which - save for certain exceptions - one or more persons work (even if only part-time) for one and the same enterprise.

*) Source: EU regulation on Statistical Units**) An important criterium is the generating of value added

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Legal/Administrative vs. Economic/statistical

Legal/administrative organization of society:

The way of creation of entities and rules in order to perform optimally according goals. Regulatory and executive institutes (e.g. tax-offices) keep lists for own purposes. Focus is on governance and control with orientation on individual persons and/or institutions.

Organization is according national legislation.

Economic/statistical approach via standardization into standard concepts of units, independent of national legislation and/or administration in principle. Individual information in context of groups. No direct repercussion on individuals.

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The SBR: simple model

Domestic Legal or natural person

Economic/statistical worldLegal/administrative world

Enterprise group = enterprise = local unit

All domestic legal and natural persons are mapped from the legal/administrative world into the economic/statistical one if they contribute to the production process, and if they do this “autonomously”. Inactive units do not reach the economic statistical part.

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The SBR: extended model

Domestic Legal or natural person

Economic/statistical worldLegal/administrative world

(Domestic)Enterprise group

Local (legal) person

Enterprise

Local unit

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SBR: Related EU Regulations

For standardization in European Union:

• Regulation on statistical units

• Regulation on business registers

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The SBR: model EU BR Regulation

Domestic Legal or natural person

Economic/statistical worldLegal/administrative world

(Domestic)Enterprise group

Local (legal) person

Enterprise

Local unit

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The SBR: model EU BR Regulation

Domestic Legal or natural person

Economic/statistical worldLegal/administrative world

(Domestic)Enterprise group

Local (legal) person

Enterprise

Local unit

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SBR: units and main characteristicsLegal unit

Local legal unit

Enterprise group

Enterprise Local Unit

Time

stamp

Source key x x

SBR ID Number x x x x x

Control/ownership x

Legal form x

SNA-sector-code x

SIC-code(s) x x x x x x

Size-class-code(s) x x x x x x

Change code x x (x) x

GEO-code x x

Survey-codes x x x x

Date of entry x x

Date of birth x x (x)

Date of death x x (x)

Date of deregister x x

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Some characteristics explainedSNA-sector-code

Institutional sector

SIC-code ISIC, NACE, NAICS, ANZIC, National codes

Regards main activities and secundary activities

Size-class Persons employed, employees, turnover

Change-code Kind of change in relation to continuity; control of events

GEO-code Adress-code, postal code, municipality, grid

Survey code Indicates the survey in which the unit is involved

Time stamp : date of registation;, date of start applying; date of checking; date of end of applying

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Classification of changes (events)*

Change class Number of units involved** Unit identity continued 1. change of characteristic

1:1 yes

2. change of existence 1. birth 0:1 no 2. death 1:0 no 3. change of structure 1. concentration 1. merger x:1 no 2. takeover x:1 yes 2. deconcentration 1. break-up 1:y no 2. split-off 1:y yes 3. restructuring x:y yes or no

* According Ad Willeboordse and Peter Struijs: papeer presented at ICES-I, 1993

** Number of units before and after the change: x>1, y>1.

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SBR: Sources and maintenance

• Administrative sources (as much as useful available): tax, chambers of commerce, courts, social security(NB: avoid capriciousness)Highly automated procedures and processing

• Feed-back information from statistical surveys

• Register-surveys

• Profiling: tailor-made analysis of large businesses(internet, annual reports, visits, …)

• Dun & Bradstreet

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SBR: Update-procedure administrative sources

Tax

Social security

Chambers of commerce

Other

Administrative Environment (units)

Statistical Environment (units)

Enterprise group

Enterprise

Local unit

Standardized/normalized

(Local)

Legal

Unit

Auxiliaryenvironment

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SBR: Update-procedure administrative sources

Tax

Social security

Chambers of commerce

Other

Administrative Environment (units)

Statistical Environment (units)

Enterprise group

Enterprise

Local unit

Standardized/normalized

(Local)

Legal

Unit

Auxiliaryenvironment

2,0 mln

0,98 mln

1,02 mln

1,12 mln

1,9 mln

Figurs in the Dutch SBR-system at th end of 2006, excluding agriculture

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Example of analysis of newly registered legal units

New legal entries in year x 100%

Not an enterprise because not independent 18% not active 15% ––––––

33%

Not a new enterprise because of administrative change 17% change of characteristics 10% change of structure 5% ––––––

32%

Actual new enterprises 35%

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SBR: main (possible) uses

1. Business survey frame• Stratified sampling (selection of units)• Survey dispatch (names/addresses) and tool for survey management/control• Instrument facilitating use of data in administrative registers for statistics

(frame for standardization and normalization)• Burden control + monitoring

2. Frame for co-ordination statistics• Comparability in and over time• Comparability between (sub)populations• Control of continuity

3. Statistical analysis • Economic demography• Small area analysis

4. Internationally• Comparability of statistics of different countries,

contemporary and in time series• Analysis of globalization

5. Selling lists

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Business register and economic statistics

Place and Role of the statistical business register is very important to serve and support statistical processes.

Business register is part of economic-statistics-system and has evaluated to a business register system with subsystems.

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SBR: main challenges

• Meeting traditional goals and purposes more efficient and more effective (e.g. development of automatic coding systems)

• Efficient use of administrative sources

• Normalization tool in the use of administrative data for statistics: translation from administrative, legal based, concepts into statistical concepts

• Dealing with imperfections and frame errors

• International comparability of statistical data starting with harmonized SBR-concepts

• Improvement of quality

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SBR: Quality indicators

• Coverage (overcoverage (% duplications) and undercoverage)

• Completeness/exhaustiveness

• Actuality

• Percentage errors (all variables)

• Effectiveness of use available administrative information

• Rate of disclosure administrative data

• Fitness for use

• System-integrity (consistency)

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Important SBR issues

Awareness on:• Restricted available budgets• Necessity of use administrative sources

• Budget• Timeliness• Response burden

• Importance of support in revisions of classifications (e.g. introduction of NACE rev.2)

• Common responsibility for quality of statistics• Continuity in sources• Reconstructible frames (using time-staping)• Need for good relationships with administrative sources,

resulting in influence in content

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Important SBR development issues

1. Expanding goals and uses internationally:• Multinational enterprises

• Globalization

• Supranational statistics

2. Further imbedding SBR-system in system of economic statistics

3. Expanding statistical use of the SBR

4. Further imbedding of the SBR in the total information system of the society

5. Further development of quality control

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Example relationships units (1)ENT GR 1

SRU B

ENT 1 ENT 2 ENT 3

LU 2 LU 3 LU 4 LU 5 LU 6LU 7

SRU 2 SRU 3 SRU 4 SRU 5 SRU 7 SRU 8 SRU 9 SRU A

LU 1

SRU 1

SOURCE 1 SOURCE 2 SOURCE 3 SOURCE 4

SRU 6

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ENT GR 1

SRU B

ENT 1 ENT 2 ENT 3

LU 2 LU 3 LU 4 LU 5 LU 6LU 7

SRU 2 SRU 3 SRU 4 SRU 5 SRU 7 SRU 8 SRU 9 SRU A

LU 1

SRU 1

CombineSplit

Combine/split

SOURCE 1 SOURCE 2 SOURCE 3 SOURCE 4

SRU 6

Example relationships units (2)

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“Profiling” Results in Dutch SBR 2005

legal units enterprise groups enterprises

20 – 29 195 717

30 – 39 88 974

40 – 59 64 903

60 – 99 44 833

100 and more 37 970

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Enterprises in The Netherlands by activity, 1 January 2005

Number %

A A Landbouw, jacht en bosbouw 91.165 12,7B B Visserij 725 0,1C C Winning van delfstoffen 220 0,0

D D Industrie 46.605 6,5E E Prod. en distributie van water gas 515 0,1

F F Bouwnijverheid 74.065 10,3G G Reparatie consumentenart. en handel 159.780 22,3H H Horeca 36.355 5,1I I Vervoer opslag communicatie 27.105 3,8

J J Financiële instellingen 14.285 2,0K K Verhuur en zakelijke dienstverlening 149.860 20,9L L Openbaar bestuur, soc. verzekeringen 1.085 0,2M M Onderwijs 19.555 2,7

N N Gezondheids- en welzijnszorg 40.885 5,7O O Milieudienstverl., cultuur recreatie 54.820 7,6

Totaal SBI'93 (NACE rev.1) 717.035 100,0

Some figures (1)

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Enterprises in The Netherlands by NACE, 1 January 2005

0

5

10

15

20

25

A B C D E F G H I J K L M N O

NACE

%

Some figures (2)

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Enterprises in The Netherlands by size, 1 January 2005

By number of employees By number of persons employed% %

Without employees 54 With 1 person employed 51

With 1 tot 5 employees 32 With 2 persons employed 16

With 5 tot 10 employees 6 With 3 tot 5 persons employed 15

With 10 tot 20 employees 4 With 5 tot 10 persons employed 8

With 20 tot 50 employees 3 With 10 tot 20 persons employed 5

With 50 tot 100 employees 1 With 20 tot 50 persons employed 3

With 100 tot 200 employees 0 With 50 tot 100 persons employed 1

With 200 tot 500 employees 0 With 100 tot 150 persons employed 0

With 500 en meer employees 0 With 150 tot 200 persons employed 0

With 200 tot 250 persons employed 0

With 250 tot 500 persons employed 0

With 500 tot 1000 persons employed 0

With 1000 tot 2000 persons employed 0

With 2000 en meer persons employed 0

Total number of enterprises 100 Total number of enterprises 100

Some figures (3)

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Card box (mut.slips, adm) 1970 - 1978

- P1400 SBR (stat) 1974 - 1978

- Inforex (adm) 1979 - 1988

- Siemens SBR (adm+stat) 1989 – 1993+ Adabas DMBS

- Cyber SBR (stat) 1978 - 1993

- Oracle SBR (adm+stat) 1993 - 2006

- Dotnet system (adm+stat) 2006 - …

Some technical SBR history at Statistics Netherlands

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References:

Council Regulation (EEC) No 3037/90 of 9 October 1990 on the statistical classification of economic activities in the European Community, amended byCommission Regulation (EEC) No 761/93 of 24 March 1993 andCommission Regulation (EC) No 29/2002 of 19 December 2001 Commission Regulation (EC) No 1893/2006 of 20 December 2006 (NACE rev 2.0)

Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community

Council Regulation (EEC) No 2186/93 of 22 July 1993 on Community co-ordination in drawing up business registers for statistical purposes  +  Recommendations Manual  (Amendation is in the stage of decision)

Many papers prepared anmd presented at the yearly International Roundtable on Business Survey Frames:http://circa.europa.eu/Public/irc/dsis/businessurvey/library

Jean Ritzen, 1995, Characteristics, maintenance and uses of the business register. In: Netherlands Official Statistics, Spring 1995.

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Thank you for your attention!

Questions? => [email protected]