10.01 - Structure, business register
Annually with number of enterprises in the beginning and end of the year and also additions and dropouts during the year. Additions are published quarterly in the Statistics Bank.
National and county level
970 - Division for Accounting Statistics
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The first publishing was in November 2002. There were some minor methodological changes before publishing in April 2003.
Public authorities, research institutions and industry use the statistics.
Enterprise statistics based on annual populations comprise all industries according to NACE standards (see 4.3) except public administration and defense (industry 75). In the section of the statistics that describes numbers, additions and dropouts (enterprise demography), the primary industries (industry 01, 02 and 05) are also excluded, but included in the annual population.
All enterprises with active operations in Norway the previous year are included in the population as of 1 January in the statistical year, provided that they are registered as of 1 January. Only enterprises with information indicating that industrial activities will take place are counted as new registrations and new businesses in the statistical year (see 4.1). This means that certain types of organisations are excluded from the demographical part of the statistics. This pertains to new registrations of Norwegian sections of foreign enterprises (NUF) and voluntary organisations (FLI) that are not registered in the National Register of Business Enterprises in Brønnøysund (FR). Business enterprises within these organisation types are required to register in the FR. With the exception of pension funds, enterprises with the legal form Another legal person (ANNA) are also excluded from the newly registered ones. The same is the case for other legal units that evidently only are registered because of a need for an organisation number.
Enterprises are included in the annual population if they are registered with active operations in Norway in the statistical year.
The statistics are demarcated in relation to public and social security administration, counties, municipalities, i.e. enterprises with institutional sector code 110 (public and social security administration), 510 (municipalities) or 550 (counties). Enterprises within this section of public administration (administration and services) are not included in the statistics even if they formally are supposed to conduct activities that sort under industries included in the statistics. For industries that are characterised by a mixture of public and private services, the population may seem insufficient since public services are excluded from the statistics. This is especially the case for power and water supply (industries 40 and 41), education (industry 80) and health and social work (industry 85).
The Central Bank of Norway, public lending institutions, enterprises within public business operations, publicly owned enterprises, municipal business operations and independent municipal enterprises, i.e. enterprises with sector codes 150, 190, 610, 630, 635, 660 and 680, are included in the statistics if they conduct activities within the industries that are covered by the statistics. In theory this is also the case for enterprises within all other institutional sectors.
The statistics on survival and growth is based on the populations of new established enterprises published in the statistics on new enterprises.
The Central Coordinating Register of Legal Entities (ER) and the Central Register of Establishments and Enterprises (CRE). The number of employees from the Register for Employer/Employees. Turnover and employment are collected through SN's structure business statistics (SBS) surveys and from administrative sources.
Furthermore data are collected from SBS and from other administrative registers such as data from VAT, accounting data and income tax returns from independent businesses in order to limit the population in relation to enterprises that in reality have ceased to exist.
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CRE is presently a comprehensive register and quality is ensured in relation to population and basic characteristics like addresses, legal form and industry codes.
The quality of the population of active enterprises is taken care of among other things by directly contacting units in connection with the data capture for the SBS and through links toward administrative registers in the monitoring system for establishments in the CRE. See also 3.2.
The quality regarding the industry code for establishments and enterprises in the CRE is continuously taken care of. This takes place by contacting the enterprises in SN's SBS-surveys, through administrative sources such as the National Insurance Administration's annual check and in other ways through direct contact with the enterprises. Furthermore with the help of statements of purposes with the ER.
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Enterprise
In Standard for Industrial Classification (SN) an enterprise is defined as an organisational unit comprising all economic activities engaged in by one and the same owner. Hence an enterprise is a legal entity covering one or more productive units.
Establishment
In SN an establishment is defined as a local kind of activity unit, which mainly is conducting activities within a special industry group.
New enterprise
A new enterprise in a given period is an enterprise registered with dates that indicate startup in this period. The registration of a legal unit in the ER counts as a new registration if the registered information assumes that the unit is to be operated as an industrial activity (see3.1).
Newly established enterprises
The number of newly established enterprises is the number of a new enterprises corrected for the change of ownership. That is – new enterprises that take over existing activity are not counted as newly established enterprise, but only as a new enterprise.
Drop-out
A discontinuance of an activity is counted as a drop-out. This may happen if the establishment linked to the enterprise is sold, close down or if the enterprise is deleted from the register in Brønnøysund. We count drop outs in year t as drop-outs among enterprises active by 1st January in year t.
All enterprises that close down or sell their establishment are considered an enterprise drop-out. If all of the establishment is closed down, and is not taken over by another enterprises, the drop-out is also classified as a closure.
Drop outs is always registered some time after they occur. These figures will therefore be adjusted when in the annual publication of enterprise demography. Final figures for drop-outs in year t is first available when we publish the figures for year t+2. Final figures for enterprise drop-outs in 2002 will firs be available when we publish enterprise demography for 2003 (including number of enterprise by 1st January 2004).
The definition of drop-outs and number of enterprises regarding to drop-outs dated to 1st January was changed before the publication of enterprise statistics 28sth April. Enterprises by 1st January 2001, and drop out in 2001 is changed on basis on this. When these figures first were published, enterprises with drop-out dated to 1st January 2001 was included in number of enterprises and dropouts in 2001. In the figures published 28th April, these were defined as drop outs in 2000 and not included in the statistic.
Population
The population as of 1st January in the statistical year (year t) includes all enterprises with active operation in the current year and that continue to be registered as of 1 January. Enterprises with drop outs dated to 1st January should not be included in the number of enterprises in t, but in drop outs in t-1.
The population at the end of the statistical year (1st January in t+1) is calculated as follows:
Population as of 1st January in year t
+ new registrations in year t
- dropouts in year t
The population at the end of the statistical year is also corrected for old "sleeping" enterprises that take up activity in the statistical year in form of new employees.
Survival
A new established enterprise in year t is considered to have survived in t+n (n>=1) if it is active in terms of turnover and/or employment in any part of t+n. This means the enterprise will be found in the annual population (of active enterprises) in t+n.
Two kinds of survival can be distinguished:
1. Direct survival. A new established enterprise in year t has survived directly in t+n (n>=1) if the enterprise is active in terms of turnover or employment in t+n.
2. Survival by take-over. A new established enterprise is also considered survived if it has ceased to be active, but its activity has been taken over by another new enterprise set up specifically to take over the factors of production of the first enterprise.
New established enterprises which are merged or taken over by an existing enterprise (not a new one) are not considered to have survived.
The new established enterprise will keep its economic activity code, size class and legal form of the year of registration of the enterprise.
"Sleeping" enterprises
New established enterprises in t that did not have any sign of acitivity in t+1, but were active in t+2.
Growth
Growth in survived enterprises is measured in the number of persons employed. Some of the new established enterprises may not have any registered activity in the year of registration. As a result the number of employees in year t will be low and the growth in t+1 large.
Employees
The number of employees comprises all persons that work for the employer more than 4 hours a week. Population, additions/dropouts show the number of employees at the time of counting. In the stock of enterprises, numbers of employees refers to the time of counting. For new enterprises, the number of employees refers 1st January and 1st September the following year. For enterprise drop outs, number of employees refers to 1st January of the year of drop out. Persons with more than one job may have been counted as employed in several industries.
Employment (Persons employed)
All employees and owners make up the employment. The figures show an average number of employees at the end of 5 selected months in the year, and may deviate from what is published in the Labour Force Survey (AKU) and the National Accounts (NR) because sources and average calculations differ. In industries where employment cannot be collected through the data collection for the SBS, the number of employees is calculated based on number of employees in the CRE. Persons with more than one type of employment may be counted as employed in several industries.
Turnover
Turnover is defined as the sum of remuneration of sale to customers, sale of commercial goods and gross income from other industry activities. The turnover includes rental income and commissions receivable, but not public assistance or gain by sale of fixed assets. VAT is not included in the figures. In certain industries the turnover concept is not clearly defined, and for these industries the turnover is not published. This concerns financial industries and insurance (industries 65, 66 and 67), education (industry 80) and health and social work (industry 85). For units in industries that are included in the SBS the turnover is collected from these. In other industries the turnover is collected from administrative sources (VAT or annual accounts).
Legal form
Type of organisation in the ER. A distinction is made between among other things individual enterprise, limited liability company and general partnership.
Standard for Industrial Classification SN02 Current Standard for Industrial Classification (SN02) in SN, based on the EU's standards NACE Rev. 1.
The statistics are based on statistical and administrative sources. Several administrative sources are instrumental in the work with updating the CRE, and are used both to define the population and to collect characteristics and information: The ER in Brønnøysund, the VAT register and the AA register are used to collect information about the units. This may cause register errors that may affect the uncertainty of the statistics.
A possible source for errors is out of date information caused by lags in the registration. Such lags are caused by the fact that changes are often registered some time after they have occurred. The consequence is that the registers are not updated at all times, something that may lead to using outdated information as basis for the statistics.
Discontinuances of activities are normally registered after they have taken place, based on information in connection with the collection of data for structure statistics or by links toward administrative registers (see 3.3). All dropouts in the period when such figures are published are therefore not necessarily registered when such figures are published. As a consequence these figures may be too low, whereas the population figures in t+1 will be correspondingly too high.
In connection with new registrations the respondent is to state whether this is a new activity or a change in ownership. In cases where such information is lacking a duplicate check against existing enterprises is carried out – in order to identify possible ownership changes. All changes are not intercepted in these routines, and the number of new establishment is assumed to be somewhat high seen in relation to the number of new registrations.
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The figures for level that are presented will deviate from the number of legal units in the ER, and may on industrial level deviate from what is presented in the structure statistics.
The deviation in relation to the ER is mainly caused by the fact that the ER comprises all legal units –also the ones who are not conducting industrial activities.
The annual populations (t-1) and the figures for year t are coordinated with the structure statistics by – for the industries that are included in the structure statistics – only comprise enterprises that in the statistical year have had turnover and employment or only turnover. The population figures per year t+1 also comprise new enterprises in year t that continue to be registered at the beginning of t+1. Since discontinuances often are registered after the facts, this figure may be too high (see 5.1).
The figures for the annual populations will deviate from the ones that are published in the structure statistics for local kind-of-activity units since turnover and all employees in an enterprise comprise the entire turnover and all employees in the enterprise, also turnover/employees in local kind-of-activity units with other industries than the enterprise.
Industry 70.201 (cooperative housing is excluded from the structure statistics for industry 70.
For the year 2000 structure statistics for industry 61 comprise only domestic shipping (industry 61.101, foreign shipping and 61.102, coastal shipping in Europe are not included). From the statistical year 2001 structure statistics for foreign shipping will also be published.
Due to special conditions within the fishing industry, the number of employees for this industry will be lower than the number of fishermen according to what is published in the "NOS-Fishing Statistics". The share fishermen on fishing vessels are not recorded as employees. These have industrial income, but are not registered in the ER/CRE as self-employed unless they are joint owners in shipping companies or liability companies.
In the 2003 annual population the methodology for calculating turnover and employment has been revised for industrial activities not included in the structural business statistics. These changes affect enterprises within the activites 65-67 and 80-99, but also enterprises within activities 10-41 that are not included in the structural business statistics (sole propritorships and enterprises with less than 0.5 persons employed). As a consequence, there is a decrease in the number of enterprises and persons employed for the year 2003 as compared with 2002.
In survival and growth the population of new established enterprises in year t is identical to the population of new established enterprises in the statistics on new enterprises in t. The survived enterprises in t+n will be found in the annual population in t+n and also in the stock of enterprises as of 1.1. year t+n. Since the survived enterprises may have ceased to exist during year t+n they may not be found in the stock of enterprises in t+n+1. In this case, the enterprises will be in the population of enterprise drop-outs in t+n.
The definition of survival closely follows the definition of survial in Eurostat's business demography.
In enterprise demography the number of enterprises by 1st January in year t (year of the statistics)equals the the number of active enterprises in t-1 and new enterprises in t-1, minus the enterprise drop outs in t-1. The number of enterprises by 1st January t+1 is estimated for new enterprises and enterprise drop outs in t. The next time this statistics is published, the number of enterprises is adjusted by administrative and statistical sources for t. Drop outs in t will also be adjusted since drop outs are registered some time after they occur. The adjusted figures for the number of enterprises in t, the number of enterprises, new enterprises and enterprise drop outs in t-1 are not necessarily coherent.
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