Enterprises

Enterprise: An enterprise is defined as the smallest combination of legal entities that produce goods or services, and which to a certain extent have independent decision-making authority (autonomous). Legal entities that are not autonomous (e.g. auxiliary entities) are merged with the autonomous legal entity to which they provide services, so that they together form an enterprise.

Establishment: An establishment is defined as a locally delimited functional unit that mainly carries out activities within a specific industrial activity. An enterprise is a subunit of the enterprise. In Eurostat, this corresponds to "local kind-of-activity unit" (LKAU).

Activity: Activity is a measure of whether the enterprise was in operation or not, and to what extent. In the versions "enterprises with activity" and "registered enterprises", activity is characterized by employment or turnover during the year, and in the version "enterprises with employees", activity is characterized by the fact that the enterprise had employees during the year. In the "registered enterprises" version, the registration of the enterprise is also counted as activity.

New enterprise: New enterprises include all real establishing of enterprises, including first-time births, reactivations and other creations. Ownership changes are not considered new enterprises, since they are simply continuation of existing activity, whereas all other creations are.

Birth: Births include all new enterprises, except creations due to (change of ownership and) other creations.

First-time birth: An enterprise is considered as first-time born in the version "enterprise with activity", "enterprise with employees" and "enterprise with activity (excluding contract workers) " in the first year it had activity, and in version "registered enterprise" in the validity year of the first information about the enterprise in Statistics Norway’s Business register (VoF) or the year of foundation (applies to AS only) if this was earlier. Ownership changes are never regarded as first-time births, but other creations might be.

Reactivation: Reactivations are enterprises that become active again after at least 2 years of inactivity. Ownership changes are excluded.

Ownership change: A change of ownership takes place in the year an enterprise starts or resumes activity, if the following three additional criteria are met: 1) The enterprise takes over in the same year, or the year before, all its activities from only one other enterprise. 2) The other enterprise transfers all its activities to the first. 3) The other enterprise is closed down at the same time or becomes inactive for at least 2 years. A change of ownership is in practice a mere continuation of an existing activity, and is therefore not considered a new enterprise.

Other creations: Other creations (i.e. except ownership changes) take place in the year an enterprise is new, if at least one of the following three additional criteria is met: 1) The enterprise takes over businesses from several enterprises in the same year, or the year before. 2) The enterprise that transfers activity, transfers it to several enterprises. 3) The transferring enterprise continues to be active. Other creations involve the creation of a new organizational unit which, to a varying degree, continues an existing activity. These other creations are therefore considered new enterprises, but not births. The acquisition of establishments from other enterprises in years other than the founding year is not considered a new enterprise. For other creations in connection with the termination of an enterprise, see death.

Survival: An enterprise born in year t has survived in year t+n (n>=1) if it had activity in t+n and continuous inactivity for a maximum of 1 year in the period between t and t+n. Survivals can be divided into two categories: 1. Direct survival occurs when it is the same enterprise that holds the activity in year t+n. 2. Survival by change of ownership occurs when another enterprise has taken over the activity in line with the definition of ownership change. The original enterprise's industrial code, size group, legal form and regional affiliation are retained.

Dormant enterprises: Dormant enterprises are characterized by the fact that they are inactive for one whole calendar year, and then become active again. Enterprises that are dormant in the last year with final figures or in the year with preliminary figures are temporarily classified as not surviving in these years, as there is a lack of reliable information about activity in the following year at the time the statistics are published. At the next publication, when there is reliable information about activity in the wake-up year, the enterprises are transferred to the category of dormant enterprises in the year in which they were inactive. From the year of awakening, they are again counted as survivors.

Awakened enterprises: Awakened enterprises are enterprises that have become active again, after previously being dormant.

Closure: An enterprise closure occurs in the last year in which the enterprise had activity, or in the last year of activity before a period of at least two years without activity. If the criteria for change of ownership are met, the cessation of an enterprise is not regarded as closure, since the entire activity has in practice been continued. Other terminations are considered closures.

Death: An enterprise death is a closure where none of the activity is transferred to another enterprise. Enterprises where activity was taken over by other enterprises in connection with the termination, in line with the definition of other creations, are considered as closures but not deaths.

Growth: Growth is defined as an increase in turnover or the number of employed persons from the previous year.

High-growth enterprises: High-growth enterprises are defined as all enterprises in the business demography that over a period of three years have an average annual growth of at least 10 per cent. Growth is measured both in turnover, employment and the number of employees. The enterprises must have at least 10 employees in the start year of the growth period, and be established no later than the year before the start year of the period, i.e. be at least 4 years old.

High-growth micro-enterprises: High-growth micro-enterprises are high-growth enterprises with 1-9 employees in the start year of the growth period. High growth is defined in two different ways: 1) As for normal high growth enterprises. 2) Growth of at least 3.31 employed persons or employees – in practice at least 4 due to rounding of micro data – during the three-year period. So far, only high-growth micro-enterprises according to definition 1) have been published.

Potential high-growth enterprises: Potential high-growth enterprises are all enterprises with at least 10 employees in the start year of the period, which were established no later than the year before the start year of the period, i.e. are at least 4 years old. Similarly for potential high-growth micro-enterprises.

Gazelles: Gazelles are 4 or 5-year-old high-growth enterprises.

Micro-gazelles: Micro-gazelles are 4 or 5-year-old high-growth micro-enterprises.

Potential gazelles: Potential gazelles are 4 or 5-year-old potential high-growth enterprises. Similarly for potential micro-gazelles.

Employed persons: The employment figures show an average of the number of employed persons in the reference week of five selected months of the year. Employed persons are defined as persons with income-generating work of at least one hour's duration in the reference week, as well as persons with temporary absence from such work, and include employees and self-employed persons (i.e. employed owners). A person may be employed in several enterprises.

Employees: Employees are defined as anyone who receives compensation in the form of salary etc. for work of at least one hour's duration in the reference week, including contract workers. Self-employed persons are not included.

Contract workers: Contract workers include freelancers and people who receive a fee for work of at least one hour's duration in the reference week.

Employed persons (adjusted): Employed persons less contract workers og employees in very minor positions (< 4 hours per week). Corresponds to "Employed persons (excl. contract workers)" in categories of size and type of growth.

Turnover: Turnover is defined as the sum of remuneration for sales to customers, advances from the sale of merchandise and gross income from other commercial activities. Turnover includes rental income and commission income, but not public grants, value added tax or gains from the sale of fixed assets. In some industries, the concept of turnover is not clearly defined. This applies to financial activities and insurance (industry K), education (industry P), health and social services (industry Q) and activities of membership organization (part of industry S). In order to determine whether enterprises in these industries are active, if they lack employees, alternative sizes are used as a supplement, such as e.g. operating income.

Legal form: Equivalent to legal form in the Central Coordinating Register for Legal Entities (CCR). Here, a distinction is made between between sole proprietorships (ENK), limited liability enterprises (AS and ASA) and other legal forms such as NUF and general partnerships (ANS and DA). Tables based on founding year show the legal form in the year of foundation, while tables based on year of survival show the legal form in the year of survival.

Region: The enterprise is located in the county and municipality based on the enterprise’s business address. In enterprises with activity in several locations, the region will be where the head office is located. Tables based on founding year show the location in the year of foundation, while tables based on year of survival show the location in the year of survival.

Standard Industrial Classification (SN2007)
The standard is based on the EU standard NACE Rev.2, and is valid from 2008 onwards. The standard industrial classification can be found here.

Industrial classification in the business demography (joint standard)
The classification is based on the current and previous Standard Industrial Classification (SN2007 and SN2002), as well as the legal forms Limited liability, Sole proprietorship and other legal form. The classification is valid from 2002. This industrial classification and the correspondence to the current and previous standard industrial classifications can be found here.

Classification by size group
The enterprises' size is grouped according to Classification of enterprises by size group or aggregates thereof.

Classification by legal form
The enterprises' legal form is grouped according to Classification of organization form or aggregates thereof.

Enterprises, employed persons and employees