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Enhancing SME Data Quality: Framework, Availability, and Methodologies in EU

Explore the European legal framework for SME statistics, data availability, methodological concerns, statistical disclosure control, and quality indicators. Learn how data are broken down by NACE Rev. 1 codes, regions (NUTS), and variables for various sectors like services, manufacturing, trade, and construction. Discover the significance of size class breakdowns, the NewCronos database, and the challenges faced in the implementation of SME statistics at national levels. Gain insights into statistical confidentiality measures, quality checks, and the importance of accurate data for small and medium-sized enterprises. This workshop by Paul Feuvrier from Eurostat sheds light on key aspects of SME data collection and analysis. Join us to delve deeper into enhancing SME data reliability and usability in the EU.

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Enhancing SME Data Quality: Framework, Availability, and Methodologies in EU

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  1. SME Statistics OECD Workshop SME data and methodologies in the EU - item 5 Paul Feuvrier / Eurostat 17 September 2003 1

  2. 1 The European legal framework for SME statistics • 2 Data availability • 3 Methodological issues • 4 Statistical Disclosure Control (statistical confidentiality) • 5 Quality indicators 17 September 2003

  3. 1 The European legal framework for SME statistics • the SBS-Regulation in short, data broken down • by NACE Rev.1 4-digit level • by NACE Rev.1 3-digit level and size class (SME statistics) • by NACE Rev.1 2 or 3-digit level and Region (NUTS) • other data sets • environmental protection expenditure • purchase of energy products • etc... 17 September 2003

  4. SME data = part of the SBS Regulation • Module on definitions • Business Register Regulation • Statistical Units Regulation 17 September 2003

  5. Four specific modules • Services (common module) - 5 variables • Manufacturing - 10 variables • Trade - 5 variables • Construction - 10 variables • For each module • specific size class breakdown • more detailed breakdown for small businesses size bands 17 September 2003

  6. Size bands simplified • from reference year 2002 onwards • Commission Regulation No 1614/2002 • mainly to prevent too many confidentiality problems 17 September 2003

  7. 2 Data availability • NewCronos = Eurostat dissemination database • Reference and updated database • theme4/sbs/sizclass • Annual enterprise statistics broken down by size classes • Historical database • theme4/hist_theme4/SME • “old” joint OECD/Eurostat data collection • no longer updated, as a NewCronos warning clearly puts it 17 September 2003

  8. 17 September 2003

  9. EU-15 totals data by size class available for reference year 1999 and 2000 • Germany < 20 not available beforehand… • Acceding countries totals ACC (10 countries) available in NewCronos end of September 2003 • EU-25 available in NewCronos on 1/5/2004 17 September 2003

  10. 3 Methodological issues • Eurostat performs quality checks before any data release • Implementation problems encountered at national level • Level of detail of size class data • Difficult to implement for some small countries • One size hardly fits all… • Still a single size class breakdown is necessary (and relevant) for computation of reliable EU-15 totals 17 September 2003

  11. Completeness • The existence of cut of values used to be the most serious problems related to SBS • Data related to enterprises with more than x persons employed used to be available • instead of > 1 person employed requested by the Regulation • Depending on the availability of a Statistical Business Register including small businesses • and on its quality… • Removal of cut of values = main achievement of SBS-Regulation • Germany, among others, made dramatic efforts top comply with the Regulation and cover <20... 17 September 2003

  12. Remaining problematic countries as regards cut of value • Greece • >10 persons employed in all industries • Ireland • >20 persons employed in Construction • Hungary • >5 persons employed in all industries • That’s it for reference year 2001! • Other countries >1 person employed in all industries • More problems for historical data... 17 September 2003

  13. Implementation problems encountered at national level • small and medium-sized enterprises are defined as enterprises which have: • fewer than 250 employees, • an annual turnover not exceeding € 50 million • an annual balance-sheet total not exceeding € 43 million. • Which are independent • in particular not affiliate of any enterprise group. 17 September 2003

  14. 4 Statistical Disclosure Control (statistical confidentiality) • Member States send confidential data to Eurostat... • …so that Eurostat is in a position to calculate European totals... • … and to release them as soon as the protection is not broken 17 September 2003

  15. Cells of detailed tables contain information either on a single or very few respondents • --> implementation of measures to limit disclosure risk • Main method implemented by Eurostat so far = Cell suppression • Assessment of disclosure risk connected to each step • Suppression of sensitive cells • primary suppression • Secondary suppression • primary suppression not enough to prevent disclosure because of the additive relationship between the cells 17 September 2003

  16. 17 September 2003

  17. 5 Quality indicators 17 September 2003

  18. Variance takes into account • survey design • non response • misclassification • To that respect, CVs clearly higher for small businesses than for large ones, • Accuracy of SME data not as good as the one of large businesses statistics • Mainly because small businesses are not completely enumerated • take some stratum • Large businesses are • take all stratum 17 September 2003

  19. Other problems posed for large businesses • industrial heterogeneity • secondary activities • statistical coverage of enterprise groups 17 September 2003

  20. Conclusions • Eurostat database on SMEs of high quality • timeliness • data available at T+20 • accuracy • CVs available • availability • completeness • coverage of small businesses almost fully achieved • comparability • legal framework for concepts and definitions 17 September 2003

  21. Yet some challenges ahead for Eurostat work on SMEs: • Still some cut off values to remove... • Reflection on a distinction between • independent SMEs • SMEs affiliates of groups • Improving the quality of R&D variables for SMEs • where the relevant statistical unit is probably more the enterprise group than the enterprise • Improving the consistency between SBS - SME data and SBS - Business Demography data 17 September 2003

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