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Developments in UK Business Demography

This publication addresses key developments in UK business demography, focusing on user demand for timely data regarding enterprise births, deaths, and survival rates. Current methodologies, which predominantly rely on VAT registrations, are examined alongside the need for comprehensive data to inform regional comparisons and policy initiatives. With an emphasis on high-growth businesses as significant contributors to job creation, the report outlines strategies for monitoring and improving business demographics across various regions, ensuring that governmental and economic agencies receive the necessary data efficiently.

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Developments in UK Business Demography

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  1. Developments in UK Business Demography Andrew Allen

  2. UK Business Demography • UK user demand • Currently available data • Changes to accommodate business demography • Future demand

  3. UK User Demand • Main user BERR • Monitoring changes in business population- briefing politicians • Compare performance between regions • Regional Development Agencies • To monitor policy on creating and sustaining businesses • High growth businesses – contributors to job creation

  4. User Demand • Both BERR and RDAs need data quickly • Both central and local government demand • Most users interested in regional variations or smaller geographical areas

  5. Current Publication • BERR use register data to publish VAT based enterprise registrations and de-registrations • A narrower methodology – i.e. VAT only • Business Demography will replace BERR VAT based publication • Much broader - any active business included.

  6. Need for Speed • To satisfy UK users we have to publish as quickly as BERR VAT registrations • Within a year of the reference period • Problem with Business Demography – time lag for deaths - 2 years • Reactivations

  7. ONS Plan • Publish on 28 November • Birth, Death and Survival – SBS variables • Births and Provisional Deaths 2007 • Will include NACE 3 digit and County, District for 2007

  8. Provisional Deaths • 2007 Deaths will be provisional. • An estimate for reactivations has been made • A table showing raw deaths and the reactivation estimate will be published in the press release • Risk, but more useful for users

  9. Other Products • Local Authority Indicators • Births by 10,000 adult population for each Local Authority • Businesses with <50 employment , with growth in employment between year 1 and year 2 - for each Local Authority

  10. Enterprise versus Local Unit • ONS regional demography being done using enterprises • Considered a better indicator of entrepreneurship • Methodology already in place • UK register focussed on enterprise continuity • LU continuity has been a problem

  11. Future Demand • Investigating creating sub–annual indicators of births and deaths • Could use all data sources, but simplest to just use VAT • VAT quickest source. • Beware -administrative processes can confuse signal

  12. VAT Births and Deaths

  13. Summary • User demand has encouraged quick demography results • Balance of risk between speed and revisions • Regional demography also produced • Administrative data flows being explored for sub-annual demography.

  14. Issues for Discussion • Regional - Enterprise or LU • Speeding up annual delivery • Higher frequency data

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