Background Notes

This release covers the reference year 2012, however data on enterprise deaths relates to 2011. Statistics are also provided on enterprise births since 2006 that were still active during 2011 and 2012. All 2012 enterprise births will be followed for 5 years to assess their survival rate and the resulting effect on employment.

Detailed data tables are available on CSO’s data dissemination service at:

http://www.cso.ie/px/pxeirestat/database/eirestat/Business%20Demography/Business%20Demography_statbank.asp?sp=Business Demography&Planguage=0

The Background Notes at the link below provide more details on the release:

http://www.cso.ie/en/surveysandmethodology/multisectoral/businessdemography/backgroundnotes/

For further information on the NACE Rev. 2 classification of economic activity, see this link:

http://www.cso.ie/en/surveysandmethodology/classifications/classificationofindustrialactivity/

Footnotes:

¹ The private business economy covers the NACE Rev 2 sectors B - N (excluding 64.20 Activities of holding companies). For comparison with previous Business Demography releases only sectors B – N (excluding 64.20 Activities of holding companies) figures are included in the release text. Sectors P & R are an extension of the coverage in recent years.

The full list of Rev 2 sectors covered is:

B – Mining and Quarrying

C – Manufacturing

D – Electricity, Gas, Steam and Air Conditioning Supply

E – Water Supply; Sewerage, Waste management and Remediation Activities

F – Construction

G – Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles

H – Transportation and Storage

I – Accommodation and Food Service Activities

J – Information and Communication

K – Financial and Insurance Activities (excludes NACE code 64.20

Activities of holding companies)

L – Real Estate Activities

M – Professional, Scientific and Technical Activities

N – Administrative and Support Service Activities

P – Education

R – Arts, Entertainment and Recreation

² Persons engaged includes employees, working proprietors and family members.

³ The composition of sectors used in the graph is as follows:

- Services: Sectors H,I,J,L,M,N

- Distribution: Sector G

- Industry: Sectors B,C,D,E

- Construction: Sector F

- Financial Service Activities: Sector K excluding 64.20, Activities of holding companies.

⁴ Small and Medium Enterprises are defined as enterprises with less than 250 persons engaged. The persons engaged breakdown provided in the figures are;

Less than 10: Micro Enterprises

10 – 49: Small Enterprises

50 – 249: Medium Enterprises

250+: Large Enterprises.

⁵ Enterprise Deaths: An enterprise death amounts to the dissolution of a combination of production factors with the restriction that no other enterprises are involved in the event. Deaths do not include exits from the population due to mergers, takeovers, break-ups or restructuring of a set of enterprises. It does not include exits from a sub-population resulting only from a change of activity.

An enterprise is included in the count of deaths only if it is not reactivated within two years.

The population of enterprise deaths in 2011 contains all enterprises that ceased at some point during the year 2011.

⁶ Enterprise Births: An enterprise birth amounts to the creation of a combination of production factors with the restriction that no other enterprises are involved in the event. Births do not include entries into the population due to mergers, break-ups, split-off or restructuring of a set of enterprises. It does not include entries into a sub-population resulting only from a change of activity.

A birth occurs when and enterprise starts from scratch and actually starts activity. An enterprise creation can be considered an enterprise birth if new production factors, in particular new jobs, is created. If a dormant unit is reactivated within two years, this event is not considered a birth.

The population of enterprise births in 2012 contains all enterprises that started at some stage during the year 2012.

⁷ Sectors refer to NACE Rev 2 sectors which are described in footnote 1. These NACE Rev2 Sectors provide a detailed breakdown of the sector analysis provided in footnote 3.

⁸ Population, births and survival data in this release relates to 2012, but the latest deaths data available is for 2011.

⁹ Business Demography figures at an EU level are available at the following link. Latest data available is for 2011.

 http://epp.eurostat.ec.europa.eu/portal/page/portal/european_business/special_sbs_topics/business_demography

¹⁰ NACE coded 64.20, Activities of holding companies is excluded from sector K

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