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New Zealand Business Demography Statistics: At February 2011
Embargoed until 10:45am  –  31 October 2011
Definitions

About Business Demography Statistics

Business Demography Statistics provides an annual snapshot (at February) of the structure and characteristics of New Zealand businesses. The series covers economically significant enterprises that are engaged in the production of goods and services in New Zealand.

This is the fifth publication of a new business demography dynamic statistics series, based on the Longitudinal Business Frame (LBF). The first publication, New Zealand Business Demography Statistics (Structural): At February 2007 includes more background about the new series. 

Definition of terms

ANZSIC: Australian and New Zealand Standard Industrial Classification. A business is normally assigned to an ANZSIC category according to the predominant activity it is engaged in.

Ancillary industry: when a geographic unit predominantly provides services to other geographic units in the same enterprise or group of enterprises, it is assigned an ancillary ANZSIC. This indicates the predominant industrial activity of the units to which the services are provided. For example, an office serving several factory units would have a primary industry reflecting the administration activity, while the ancillary industry would reflect the factory activity. The business demography statistics in this release use the ancillary industry when one exists, and the primary industry otherwise.

Birth: a new enterprise starting operation. A birth is the creation of a combination of production factors, with the restriction that no other national businesses are involved in the event. Births do not include entries into the population due to reactivations, mergers, break-ups, split-offs, or other restructuring of a group of businesses linked by ownership or control. Births also exclude entries into a population resulting from changes to characteristics of existing businesses (this is largely based on, and fully consistent with, the Eurostat definition of enterprise births). To be considered a birth in the business demography population, the enterprise and associated geographic units existed at neither time T-1 year nor time T-2 years. For more information, see Reference period for births and deaths.

Death: an enterprise ceasing operation. A death is the dissolution of a combination of production factors, with the restriction that no other domestic businesses are involved in the event. Deaths do not include exits from the population due to temporary inactivity, mergers, takeovers, break-ups, or other restructuring of a group of businesses linked by ownership or control. Deaths also exclude exits from a population resulting from changes to characteristics of businesses which remain active (this is largely based on, and fully consistent with, the Eurostat definition of enterprise deaths). To be considered a death in the business demography population, the enterprise and associated geographic units exist at neither time T year nor time T+1 year. For more information, see Reference period for births and deaths.

Employee count (EC): head count of salary and wage earners sourced from taxation data. EC data is available on a monthly basis. The EC count used for the derivation of business demography statistics is for the February month.

Employment size groups: employee count (EC) data in this release has been summarised into seven employment size groups:

0 EC
1–5 EC
6–9 EC
10–19 EC
20–49 EC
50–99 EC
100+ EC.

Enterprise: a business operating in New Zealand. It can be a company, partnership, trust, estate, incorporated society, producer board, local or central government organisation, voluntary organisation, or self-employed individual.

Enterprise group: a grouping of enterprises in the Business Frame linked by common ownership. Generally, the Business Frame only records links of over 50 percent shareholding between enterprises. Types of enterprise groups are:

  • All resident enterprise group – an enterprise group composed only of enterprises that are all resident in New Zealand.
  • Multinational enterprise group – an enterprise group that contains one or more enterprises resident outside of New Zealand.
  • Foreign controlled enterprise group – a multinational enterprise group controlled by a group head that has its headquarters outside of New Zealand. 
  • Domestically controlled enterprise group – a multinational enterprise group controlled by a group head that has its headquarters in New Zealand. 

Entries: enterprises that are present in the business demography population at the end of the reference period, but were not present at the start of the reference period.

Exits: enterprises that are present in the business demography population at the start of the reference period, but are not present at the end of the reference period.

Geographic unit or business location: a separate operating unit engaged in New Zealand in one, or predominantly one, kind of economic activity from a single physical location or base.

Pure births: births with a recent birth date. That is, the birth dates of all geographic units and the enterprise are more recent than the February snapshot of time T-2 in the business demography population. Pure births generally exclude reactivations (enterprises dormant for a period of time that come back into the population). For more information, see Reference period for births and deaths.

Reactivations: enterprises dormant for a period of time that come back into the business demography population.

Surviving births: births that survive at least one period (until time T+1 reference period) in the business demography population. For more information, see Reference period for births and deaths.

Short-lived births: births that disappear by the time T+1 reference period in the business demography population, either due to death or dormancy. For more information, see Reference period for births and deaths.

Survival rates: survival rates are calculated as the percentage of births in each reference period that survive into future reference periods in the business demography population (surviving births divided by total births for a particular reference period). To be considered a survivor, the birthed enterprise must have existed at every reference period between its birth year and the given reference period.

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