SME Statistics OECD Workshop

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down by size classes • Historical database • theme4/hist_theme4/SME • “old” joint OECD/Eurostat data collection • no longer updated, as a NewCronos warning clearly puts it 17 September 2003

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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

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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