BASIC INDICATORS OF BUSINESS DEMOGRAPHY, 2020 – Provisional Data

 

Enterprises monitored by business demography statistics are classified in the sections B to S of the National Classification of Activities – NKD 2007. with the exception of group K 64.2 – Activities of holding companies and section O – Public administration and defence; compulsory social security.

Until the 2019 reference year, data did not include natural persons involved in independent activities, who are the taxpayers of the lump-sum income tax. As the number of units subject to lump-sum income tax has significantly increased each year since the 2017 tax reform, the impact on business demography data has been increasing. For that reason, the scope of units covered by business demography statistics increased from 2019 onwards due to the inclusion of the aforementioned units and it is not comparable to previous years.

According to the provisional results, in 2020, there was a total of 206 331 active enterprises employing 1 197 588 persons.

Within the total number of active enterprises in 2020, the most represented were enterprises in the activities of Wholesale and retail trade; repair of motor vehicles and motorcycles (section G), Professional, scientific and technical activities (section M), Construction (section F) and Manufacturing (section C).

The largest shares in the total number of employed persons were recorded in Manufacturing (section C) and Wholesale and retail trade; repair of motor vehicles and motorcycles (section G).

Within the total number of enterprise births in 2020, the activities with the largest shares were Professional, scientific and technical activities (section M), Construction (section F) and Wholesale and retail trade; repair of motor vehicles and motorcycles (section G).

There was a decrease in survival rates compared to previous periods, which could have been caused by difficulties in the economy, which are a consequence of the outbreak of COVID-19 in 2020.

Within the total number of enterprise deaths in 2019, the largest shares belonged to enterprises in the activities of Wholesale and retail trade; repair of motor vehicles and motorcycles (section G), Professional, scientific and technical activities (section M) and Accommodation and food service activities (section I).

 

Notice

Data for 2019 and 2020 are not comparable with data from previous years due to the enlargement of the coverage of active enterprises. In addition, until the 2019 reference year, legal and natural persons were used as the equivalent of enterprise, while since 2019, the definition of enterprise according to the EU methodology has been applied. This means that in some cases several legal entities that are part of the same group of enterprises are grouped into one enterprise if their activities are related and form part of the same production process.

PNG

1) Provisional data. Final data for the number of active enterprises and enterprise births for 2020 and the number of enteprise deaths for 2019, will be published in the database on 8 July 2022.

PNG

1) Survival rate represents the percentage of enterprises that were constantly active after the year of birth. Provisional data. Final data will be published in the database on 8 July 2022.

NOTES ON METHODOLOGY

Business demography data are prepared in line with the methodology developed by Eurostat and OECD.

Data sources

Business demography statistics is based on data from the Statistical Business Register (SBR) of the Croatian Bureau of Statistics.

Observation units

The main observation unit used for business demography statistics is an enterprise. Each enterprise as a whole is assigned a code number of its principal activity according to the National Classification of Activities. The principal activity is determined and updated by the Statistical Business Register. The criterion for determining the principal activity is the largest share in the total value added of an enterprise. If it is not possible to obtain accurate information on the value added, the activity classification has to be determined by using substitute criteria such as income and/or number of persons employed.

Coverage

Business demography data refer to enterprises registered in the SBR that are classified in sections B – S according to the NKD 2007., with the exception of activity K 64.2 Activities of holding companies, and section O – Public administration and defence; compulsory social security.

Definitions and explanations

Enterprise in the statistical sense is a business entity that represents an Enterprise in the statistical sense is a business entity that represents an organisational unit for producing goods and/or services and benefits from a certain degree of autonomy. Depending on the business and organisational situation, it may correspond to only one legal unit or a group of several legal units. In addition to legal entities, enterprises also include free lances and crafts (since 2019, also those whose activity has been determined on the basis of lump sum income tax reports). Council Regulation (EEC) No. 696/93 on the statistical units for the observation and analysis of the production system in the Community. Until the 2019 reference year, legal entities and natural persons were treated as proxies for enterprises, while the use of the common EU definition of enterprises will ensure a clear distinction between these terms.

Number of active enterprises is the number of enterprises registered in the Statistical Business Register that were active during at least a part of the reference year.

Enterprise is considered to be active if it either had employment or realised turnover or investments.

Number of persons employed is defined as the total number of persons who work in an enterprise (including working proprietors, partners working regularly in the unit, unpaid family workers and voluntary workers), as well as persons who work outside the enterprise who belong to it and are paid by it, calculated as an annual average.

Enterprise births include enterprises that started an economic activity in the reference year.

Births exclude events such as mergers, break-ups, split-offs or restructuring of a set of enterprises.

Enterprise birth is not equal to registration of enterprise in a competent register. It is the result of the comparison and analysis of populations of active enterprises in three consecutive years.

Enterprise deaths include enterprises that have not been economically active for two consecutive years after the last year of activity. Deaths exclude enterprises that ceased to operate due to a split-up, take-over or merger.

Survived enterprise is the one without discontinuity in its activity status in years after the year of birth.

Survival rate of newly born enterprises in a given reference period is the number of enterprises that were born in year xx-n and survived to year xx as a percentage of all enterprises born in year xx-n.

Territorial constitution

Population covers enterprises resident in the Republic of Croatia.

Abbreviations
COVID-19	COrona VIrus Disease-19
EEC	European Economic Community
EU	European Union
Eurostat	Statistical Office of the European Communities
NKD 2007.	National Classification of Activities, 2007 version
OECD	Organisation for Economic Co-operation and Development
SBR	Statistical Business Register

 

Symbols
...	data not available

 

 

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Persons responsible:
Milenka Primorac Čačić, Director of Business Statistics Directorate
Lidija Brković, Director General

Prepared by:
Zrinka Pavlović and Ana Veledar

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