Business Register

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Business Register
Background and Overview Marietha
Gouws Executive Manager Business
Register Seminar on Developing a programme for
the implementation of the 2008 SNA and
supporting statistics 17-19 October
2012 Pretoria, South Africa
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Outline

• Background
• Objectives of the division
• Divisional organogram
• Summary of the maintenance process
• Internal Stakeholders
• Divisional component activities
• Business Register Statistics

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Background

• Pre 1999 the organisation had a Business Address
  Register (BAR)
• In 1999 a decision based on international best
  practise and recommendations from ABS was made to
  use administrative sources in order to create a
  new Business Sampling Frame (BSF)
• Agreements for administrative data were made with
  the Department of Trade and Industry (the dti),
  Department of Labour (DoL) and South African
  Revenue Service (SARS)
• Current challenges faced
• Resource constrains led to infrequent updating
  of information and therefore not reflecting the
  situation on the ground accurately
• Lack of single business number/ unique
  identifier extremely difficult to match the
  various administrative databases

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Background

• By matching the various tax types of the same
  business into a cluster we ensure that only
  businesses that matched are created in the
  Integrated Business Register (IBR)
• The information on the IBR is then used to create
  an administrative sourced BSF system and a
  derived statistical sourced BSF that will serve
  as a sampling frame for economic series
• Maintenance rules were designed to meet resource
  constrains
• Rules work for most of the businesses on the BSF
• However, businesses with many locations and
  different activities are the exceptions to the
  rules

Slide 9
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Objectives of the division

• The first objective of the Business Register
  otherwise referred to as the Business Sampling
  Frame (BSF) is to serve as a common sampling
  frame for all survey areas involved in the
  production of economic statistics.
• Secondly the BSF can serve as a source for
  register-based statistics.

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Divisional organogram
Summary 3 components 73 staff members
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Administrative sources
Source Information
South African Revenue Service (SARS) Income Tax (IT), Value Added Tax (VAT), Payroll taxes - Pay-as-you-earn (PAYE) - Skills development level (SDL) - Unemployment insurance fund (UIF)
Department of Trade and Industry (the dti) Companies and intellectual property Commission (CIPC) - Register of companies
Department of Labour (DoL) Unemployment Insurance Fund (UIF)
Registration data Transaction data
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Business Register characteristics

• Comprehensiveness in coverage,
• Sufficiently classified per industry, and
• Usability of contact details.
• In addition, such a register must be regularly
  maintained so that new units are detected and
  added, while dead units are removed.
• The accuracy of a business register, as a
  foundation of economic statistics, allows results
  of surveys to mirror economic reality on the
  ground as much as possible.

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Classifications
Standard Industrial Classification of all
Economic Activities (SIC)
SIC Description of the SIC
1 Agriculture, Hunting, Forestry and Fishing
2 Mining and Quarrying
3 Manufacturing
4 Electricity, gas and water supply
5 Construction
6 Trade Industries (61-Wholesale ,62 Retail, 63 Motor, 64 - Hotels and restaurants)
7 Transport, Storage and Communication
8 Financial intermediation
9 Community, social and personal services
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Classifications
Classification of institutional sectors
Code Description
S.1 Total economy
S.11 Non-financial corporations
S.12 Financial corporations
S.13 General government
S.14 Households
S.15 Non-profit institutions serving households
S.2 Rest of the world
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Statistical Unit Structure

1. Enterprise (EN) unit - a legal unit or
   combination of legal units that carry out
   production activities.
2. Kind-of-Activity (KAU) unit - is an enterprise
   unit or a part of an enterprise unit involved in
   one or predominantly one kind of activity on a
   5-digit SIC level. Kind-of-activity unit is
   dependant on activity for its survival.
3. Geographical (GEO) unit is an enterprise unit
   or part of an enterprise unit involved in one or
   predominantly one kind of activity on a 5-digit
   SIC level at or from one location. At least one
   person must be permanently employed at that
   location. A geographic unit is dependent on
   activity, location and employment for its survival

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Enterprise characteristics

• Size measures - required for stratification
  during sampling
• Enterprise turnover
• Number of employees
• Hectares of land - agriculture
• Salary/wages
• Number of rooms - hotels
• Classifications required for sampling
• Industry economic activity
• Ownership type
• Institutional

BR quality concerns
Current BR maintenance processes
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Life Cycle status identification
Green cross birthed No cross
activated/reactivated Blue cross
deactivated Red cross ceased
Slide 33
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Summary of the maintenance process
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Maintenance sources

• Value Added Tax (VAT)
• Other

Automatic updates Manual updates (VAT investigation list)
Profiling Survey area feedback Annual improvement survey Complex business All economic surveys Business Register
Slide 9
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Internal stakeholders
Monthly Quarterly Annual/periodic
Manufacturing (production sales) Quarterly Financial Statistics (QFS) Annual Financial statistics (AFS)
Various trade sales (wholesale, retail motor trade) Quarterly Employment Statistics (QES) Large sample surveys
Electricity generated Quarterly Employment Statistics (QES) Large sample surveys
Food beverages Quarterly Employment Statistics (QES) Large sample surveys
Tourism accommodation Quarterly Employment Statistics (QES) Large sample surveys
Land transport Quarterly Employment Statistics (QES) Large sample surveys
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Business Register
Operations and Maintenance
(Investigate VAT and Survey Area Feedback (SAF)
queries)
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Operations and Maintenance

• This component is responsible for
• Confirming that VAT investigations are dealt with
  preferably before quarterly common frames are
  produced for the survey areas
• Ensuring accurate economic data is reported for
  large businesses
• Ensuring queries from survey areas are
  investigated

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Business Register
Large Business Unit
(Profiling of large and complex businesses)
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Large Business Unit

• This component is responsible for
• Confirming the Enterprise Group structures as
  quickly as possible and preferably before
  quarterly common frames are produced for the
  survey areas
• Ensuring accurate economic data is reported for
  large businesses and to personally manage Stats
  SAs contact with businesses where necessary

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Profiling overview

• Profiling is ongoing and schedules are revised
  annually to detect major structural changes
  within the Enterprise Groups (EGs)
• The scope of investigations include only South
  African registered companies
• The turnaround time to complete a profile depends
  on the
• Complexity of the EG
• Location of the accounting records (centralised/
  decentralised)
• Respondents co-operation
• Current turnaround time to complete a profile is
• 3 to 6 months for less complex EGs
• 7 months to 1 year for medium complex EGs
• More than a year for very complex EGs

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Profiling Planning Priority Setting

• Queries from survey areas
• Profiles started but not completed in previous
  year
• Enterprise Groups identified by Business Register
  components
• Enterprise Groups not profiled for 2 years or
  more (Re-Profiles)
• New Enterprise Groups identified from business
  publications

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Business Register
Quality Improvement Unit QIS (Maintain large
business information on the BSF)
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Quality Improvement Survey (QIS), 2012

• Purpose of the survey is to improve the quality
  of the BSF
• The main aim of sample design is to address the
  known deficiencies
• Sample specifications are used to give structure
  to the design (Sample size 4 165 live (acti,
  birt reac) ENs
• 2 000 ENs classified with SIC09000 LBU
  additional scope

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Business Register
Quality Improvement Unit Development (Develo
pment and implementation of guidelines,
procedures and training programmes)
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Development

• This component is responsible for
• Snapshot- and Frame creation
• Design, Development and Collection of the Quality
  Improvement Survey (QIS)
• Updating documents originated from the BR
  division
• Implementing the Units Model
• Coordinating BR information sessions to internal
  stakeholders

Slide 28
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Units Model Structure
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Statistical Unit Structure

• Enterprise (EN) unit - a legal unit or
  combination of legal units that carry out
  production activities.
• Kind-of-Activity (KAU) unit - is an enterprise
  unit or a part of an enterprise unit involved in
  one or predominantly one kind of activity on a
  5-digit SIC level. 
• Geographical (GEO) unit is an enterprise unit
  or part of an enterprise unit involved in one or
  predominantly one kind of activity on a 5-digit
  SIC level at or from one location.

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Snapshot and Frame creation process
Source May 2012 snapshot
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Frame creation
Common Main Frame (43 of BSF) 1.499 million
Live enterprises (life cycle code is birthed,
activated or reactivated)
2010
2011
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Industry distribution on the BSF
Source May 2012 snapshot
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Business Register
Quality Improvement Unit Analysis (Compr
ehensive analysis on all enterprises on the
BSF)
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Reasons for analysis of the BSF

• To monitor the quality of the BSF
• To track changes and reasons for changes to the
  BSF
• To ensure that recommendations are implemented
  correctly

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Detailed classification status by size group (1)
SIC Description of the SIC Percentage of industries classified on a 4- and 5-digit level on the common frame Percentage of industries classified on a 4- and 5-digit level on the common frame Percentage of industries classified on a 4- and 5-digit level on the common frame Percentage of industries classified on a 4- and 5-digit level on the common frame Percentage of industries classified on a 4- and 5-digit level on the common frame
SIC Description of the SIC Size group 1 Size group 2 Size group 3 Size group 4 Turnover value not available
1 Agriculture, Hunting, Forestry and Fishing 90 77 72 77 5
2 Mining and Quarrying 99 95 75 26 7
3 Manufacturing 99 97 91 54 6
4 Electricity, gas and water supply 100 100 100 100 29
5 Construction 100 99 98 88 17
6 Trade Industries (61-Wholesale ,62 Retail, 63 Motor, 64 - Hotels and restaurants) 99 99 93 72 8
7 Transport, Storage and Communication 99 96 89 57 9
8 Financial intermediation 98 97 93 66 9
9 Community, social and personal services 99 97 91 66 6
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Thank you