Structural business statistics (SBS) describe the structure, conduct and performance of economic activities valued at market prices by observing units engaged in those activities. They provide information on income and expenditures, size, employment, productivity, national and regional specialisation, investments, etc.

The purpose of the structural business statistics survey is monitoring of business and providing internationally comparable data in accordance with the European SBS standards (Regulation (EC) No 295/2008 of the European Parliament and of the Council of 11 March 2008). The obtained indicators enable the analysis of business and structural changes of business population. The indicators serve as a basis for performing market analysis and business decision-making as well as for the calculation of the gross domestic product and the assessment of basic macroeconomic categories.

Sources and methods of data collection

The SBS compilation data as well as those used in the calculation of SBS indicators are collected from existing administrative and statistical sources. The principal data source in sections B – J and L – N as well as in division 95 of section S is the Annual Financial Report of Entrepreneurs (GFI-POD form) obtained from the Financial Agency. Data in section K are obtained from the Croatian National Bank and the Croatian Financial Services Supervisory Agency. Additional data sources are other financial reports, records of the Tax Administration Office (profit and income taxes) and own CBS surveys (IDU-OK and INV-P forms) according to relevant methodology.

Observation units

The main observation unit used in the structural business statistics is an enterprise – a business entity that makes an organisational unit engaged in producing goods and/or services and holds a certain degree of autonomy, in accordance with Council Regulation (EEC) No. 696/93 on the statistical units for the observation and analysis of the production system in the Community. Depending on the business and organisational situation, it may correspond to either one legal unit or a group of several legal units. In addition to legal units, enterprises also include free lances and crafts.

Each enterprise as a whole is assigned a code number of its principal activity according to the National Classification of Activities. The principal activity is determined and updated by the Statistical Business Register of the Croatian Bureau of Statistics. The criterion for determining the principal activity is the largest share in the total value added of an enterprise. If it is not possible to obtain accurate information on the value added, the activity classification has to be determined by using substitute criteria such as income and/or the number of employed persons.

For enterprises classified in section K (financial institutions), legal entities or natural persons are still used as proxies.

Coverage

Data are presented by sections and divisions of the National Classification of Activities, 2007 version (NKD 2007.). They include active enterprises that are classified into sections B – N as well as into division 95 of section S of the NKD 2007., according to their principal activity.

Confidentiality

Aggregate data, for which confidentiality must be upheld (because of a small number of units, the dominance rule or secondary confidentiality rule), are treated as such and are not published in line with the Official Statistics Act (NN, No. 25/20) and the Commission Regulation (EC) No. 250/2009 .

Definitions of variables

Number of enterprises (EU code 11110) is the number of enterprises registered in the Statistical Business Register that were active during at least a part of a reference period. A statistical unit is considered to be active if it either had employment or realised turnover or investments.

Turnover (EU code 12110) comprises the total accrued incomes from market sales of goods or services to third parties, with the exception of deductible VAT. Incomes classified as financial (except in section K), other and extraordinary ones are excluded.

Production value (EU code 12120) measures the amount actually produced by the enterprise, based on sales, including changes in stocks and the resale of goods and services.

Gross margin on goods for resale (EU code 12130) corresponds to the difference of turnover from trading activities and total purchases of goods and services purchased for resale, adjusted for changes in stocks of those goods and services.

Value added at factor costs (EU code 12150) is the gross income from operating activities after adjusting for operating subsidies and indirect taxes, calculated gross (depreciation is not subtracted). Income and expenditure classified as financial is excluded from value added (except in section K).

Gross operating surplus (EU code 12170) corresponds to the surplus generated from operating activities after the personnel costs had been recompensed.

Total purchases of goods and services (EU code 13110) include the value of all goods and services (with the exception of deductible VAT) purchased during the accounting period, excluding capital goods the consumption of which is registered as consumption of fixed capital. Expenditures classified as financial ones are excluded (except in section K).

Purchases of goods and services for resale (EU code 13120) include the value of goods and services (with the exception of deductible VAT) purchased for resale to third parties.

Payments for agency workers (EU code 13131) include payments to agencies for occasional use (lease) of so-called agency workers. These payments are not included in personnel costs.

Changes in stocks of goods and services (EU code 13210) correspond to the difference between the value of the total stocks (stocks of goods and services purchased for resale, stocks of finished goods and work in progress and stocks of raw materials and consumables) at the end and the beginning of a reference period.

Changes in stocks of goods and services purchased for resale (EU code 13211) are a part of the total changes in stocks and refer to the change in stocks of goods and services bought for the sole purpose of reselling them in the same condition as received.

Changes in stocks of finished goods and work in progress (EU code 13213) are a part of the total changes in stocks and refer to the change in stocks of finished products and work in progress, which have been produced and which have not been sold yet. Stocks are valued at production costs and prior to value adjustments.

Personnel costs (EU code 13310) are remunerations calculated and payable by employers to employees in return for work done. They are made up of wages and salaries (EU code 13320) and social security costs (EU code 13330).

Wages and salaries (EU code 13320) are defined as the total remunerations, in cash or in kind, payable to employees, in return for work done during the accounting period, including the values of income taxes and social security contributions to schemes for retirement pensions, actually withheld by the employer and paid directly to authorised institutions on behalf of the employee.

Social security costs (EU code 13330) correspond to the value of social contributions incurred by an employer in order to secure the entitlement to social benefits (in the event of illness, occupational accidents and diseases, unemployment, etc.) for employees, regardless of whether they are statutory, collectively agreed, contractual or voluntary in nature.

The payments for long-term rental (EU code 13411) include all charges relative to the renting of tangible goods for a period greater than one year. Payments for the operational leasing of goods relate to the cost of using the tangible goods made available by operational leasing contracts. All payments regarding financial leasing should be excluded.

Gross investments in tangible goods (EU code 15110) include all realised investments in new and existing tangible capital goods during the reference period, having a useful life of more than one year, including non-produced tangible goods such as land.

Gross investment in land (EU code 15120) includes investment in land as well as land improved by levelling, underground deposits, forests and inland waters. Where land is purchased with existing buildings/structures and the value of the two components is not separable, the total is recorded under this heading if it is estimated that the value of the land exceeds the value of the existing buildings. Land acquired through restructuring (mergers, take-overs etc.) is excluded.

Gross investment in existing buildings and structures (EU code 15130) includes the purchase of existing buildings that have been used before as well as of other structures acquired during the reference period. Where land is purchased with existing buildings and the value of the two components is not separable, the total is recorded under this heading if it is estimated that the value of the existing buildings exceeds the value of the land. Purchases of new buildings that have never been used are excluded as well as existing buildings and structures acquired through restructuring.

Gross investment in construction and alteration of buildings (EU code 15140) covers purchases of new buildings that have never been used before and the construction of new buildings and other structures. Also included are all additions, alterations, improvements and renovations of existing buildings and structures, which prolong the service life or increase the productive capacity of buildings. Included is installation or major reconstruction of permanent installations.

Gross investment in machinery and equipment (EU code 15150) covers investments in new and second-hand machinery, equipment and all kinds of vehicles. Also included are all improvements and renovations that prolong the service life or increase the productive capacity. Machinery and equipment acquired through restructuring (such as mergers, take-overs etc.) are excluded.

Sales of tangible goods (EU code 15210) includes the value of existing tangible capital goods sold to third parties, valued at the price actually received (excluding VAT).

Number of persons employed (EU code 16110) is defined as the total number of persons who work in an enterprise (including working proprietors, partners working regularly in the unit, unpaid family workers and voluntary workers), as well as persons who work outside the enterprise who belong to it and are paid by it.

Number of employees (EU code 16130) is defined as the number of persons who have an employment contract (which may be formal or informal) and work for an enterprise in return for remuneration in cash or in kind, regardless of where the work is done (in or outside the enterprise).

Number of employees converted into full-time equivalents (EU code 16140) is the ratio of total hours actually worked to annual possible working hours of paid employees.

Number of hours worked by employees (EU code 16150) includes the number of hours actually worked, which also includes the time spent at a place of work on tasks such as preparing the site and time corresponding to short periods of rest at the work place. The variable excludes hours paid but not actually worked, such as for annual leave, holidays, sick leave, meal breaks, etc.

Purchases of energy products (EU code 20110) include purchases of all energy products only if they are purchased to be used as fuel or energy. Energy products purchased as raw materials or for resale without transformation should be excluded.

Additional notes

Deviation of sums may occur due to rounding of numbers.

Abbreviations

Symbols

Prepared by:

Paula Nimac, Phone: +385 (0) 1 4806-249, E-mail: nimacp@dzs.hr

Stjepan Boroš, Phone: +385 (0) 1 4806-265, E-mail: boross@dzs.hr

Ana Bašadur, Phone: +385 (0) 1 4806-212, E-mail: basadura@dzs.hr

Lucija Babić, Phone: +385 (0) 1 4806-270, E-mail: babicl@dzs.hr

This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of the Croatian Bureau of Statistics and can under no circumstances be regarded as reflecting the position of the European Union.