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ISSN 1830-8147



                    Statistical books




European Business
Facts and gures




2009 edition
Statistical books




European Business
Facts and figures




2009 edition
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More information on the European Union is available on the Internet (http://europa.eu).

Luxembourg: Office for Official Publications of the European Communities, 2009

ISBN 978-92-79-12407-5
ISSN 1830-8147
DOI 10.2785/23246
Cat. No. KS-BW-09-001-EN-N

Theme: Industry, trade and services
Collection: Statistical books

© European Communities, 2009
© Cover photo: Phovoir
EUROSTAT
          L-2920 Luxembourg — Tel. (352) 43 01-1 — website http://ec.europa.eu/eurostat




Eurostat is the Statistical Office of the European Communities. Its mission is to pro-
vide the European Union with high-quality statistical information. For that purpose,
it gathers and analyses figures from the national statistical offices across Europe and
provides comparable and harmonised data for the European Union to use in the defi-
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organisations, academics, librarians, NGOs, the media and citizens.

Eurostat's publications programme consists of several collections:
• News releases provide recent information on the Euro-Indicators and on social,
  economic, regional, agricultural or environmental topics.
• Statistical books are larger A4 publications with statistical data and analysis.
• Pocketbooks are free of charge publications aiming to give users a set of basic fig-
  ures on a specific topic.
• Statistics in focus provides updated summaries of the main results of surveys, stud-
  ies and statistical analysis.
• Data in focus present the most recent statistics with methodological notes.
• Methodologies and working papers are technical publications for statistical
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All publications are also downloadable free of charge in PDF format from the Eurostat
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and long-term indicators.

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Acknowledgements
European business – Facts and figures, 2009 edition
This publication has been produced by Eurostat unit G2 responsible for structural business statistics. The opinions
expressed are those of the individual authors alone and do not necessarily reflect the position of the European
Commission.

Editor and project co-ordinator
Ms Aleksandra Stawińska
Eurostat, the Statistical Office of the European Communities
Unit G2 Structural business statistics
Bâtiment Joseph Bech
Rue Alphonse Weicker 5
L-2721, Luxembourg

Production
Data processing, statistical analysis, design and desktop publishing
INFORMA sarl
Giovanni Albertone, Simon Allen, Edward Cook, Andrew Redpath

Data extracted
The data were extracted in December 2008 and January 2009.

Contact details
For individuals:
Eurostat provides a support network at a national and European level. More information including a full list of support
centres may be obtained at http://epp.eurostat.ec.europa.eu/portal/page/portal/help/user_support.
For journalists:
Eurostat media support
Tel: (352) 4301 33408
Fax: (352) 4301 35349
eurostat-mediasupport@ec.europa.eu

For more information
All the chapters of European business: facts and figures in PDF format and MS Excel fi les containing the data used in
the tables and figures can be downloaded from the Eurostat website free of charge. The structural business statistics
dedicated section is located on the ‘Statistics’ page, under the subheading of ‘Structural business statistics’ under the
heading ‘Industry, trade and services’, accessible from the Eurostat homepage, at http://ec.europa.eu/eurostat.
Contents


    Contents
    Introduction                                                                                5
    Business economy overview                                                                   9
    1.1: Macro-economic outlook                                                                 10
    1.2: Structural profi le of the business economy                                            18
    1.3: Expenditure, productivity and profitability                                            31
    1.4: Enterprise demography and size class analysis                                          42
    1.5: Employment characteristics                                                             50
    1.6: Evolution of production, employment and turnover                                       54
    1.7: External trade                                                                         59
    Mining and quarrying                                                                       65
    2.1: Extraction of energy producing materials                                               73
    2.2: Non-energy mining and quarrying                                                        79
    Food, beverages and tobacco                                                                85
    3.1: Meat                                                                                   95
    3.2: Fish                                                                                   97
    3.3: Dairy products                                                                         99
    3.4: Bread, sugar, confectionery and other food products                                   101
    3.5: Miscellaneous food products                                                           105
    3.6: Beverages                                                                             108
    3.7: Tobacco                                                                               111
    Textiles, clothing, leather and footwear                                                   115
    4.1: Textiles                                                                              123
    4.2: Clothing                                                                              126
    4.3: Leather and footwear                                                                  130
    Wood and paper                                                                             135
    5.1: Wood and wood products                                                                143
    5.2: Pulp, paper and paper products                                                        146
    Fuel processing and chemicals                                                              151
    6.1: Fuel processing                                                                       160
    6.2: Basic industrial chemicals (including petrochemicals)                                 162
    6.3: Miscellaneous chemical products                                                       165
    6.4: Pharmaceuticals                                                                       170
    Rubber and plastics                                                                        175
    7.1: Rubber                                                                                182
    7.2: Plastics                                                                              184
    Other non-metallic mineral products                                                        189
    8.1: Glass                                                                                 196
    8.2: Ceramic and clay products                                                             199
    8.3: Cement and concrete                                                                   201
    8.4: Stone and miscellaneous non-metallic mineral products                                 204




2                                                      European business — Facts and figures
Contents


Metals and metal products                             209
9.1: First processing of ferrous metals               217
9.2: Basic precious and non-ferrous metals            220
9.3: Casting                                          222
9.4: Structural metal products                        223
9.5: Boilers, metal containers and steam generators   226
9.6: Other metal processing                           228
9.7: Miscellaneous fabricated metal products          230
Machinery and equipment                               237
10.1: General purpose machinery                       244
10.2: Agricultural and forestry machinery             246
10.3: Industrial processing machinery                 248
10.4: Arms and ammunition                             251
10.5: Domestic appliances                             253
Electrical machinery and optical equipment            257
11.1: Instrument engineering                          266
11.2: Computers and office equipment                  270
11.3: Electrical machinery and equipment              273
11.4: Radio, television and communication equipment   277
Transport equipment                                   285
12.1: Motor vehicles, trailers and semi-trailers      294
12.2: Ships and boats                                 297
12.3: Railway equipment                               299
12.4: Aerospace equipment                             300
12.5: Miscellaneous transport equipment               302
Furniture and other manufacturing activities          307
13.1: Furniture                                       313
13.2: Other manufacturing activities                  316
Network supply of electricity, gas and steam          321
Water supply and recycling                            331
15.1: Water supply                                    337
15.2: Recycling                                       339
Construction                                          345
16.1: Site preparation                                354
16.2: General construction                            355
16.3: Building installation                           357
16.4: Building completion                             360
16.5: Renting of construction equipment               363
Motor trades                                          365
17.1: Motor vehicles and motorcycles distribution     372
17.2: Retail sale of automotive fuel                  375
Wholesale trade                                       379
18.1: Wholesale on a fee or contract basis            387
18.2: Agricultural wholesaling                        388
18.3: Wholesaling of consumer goods                   390
18.4: Wholesaling of intermediate goods               392
18.5: Wholesaling of machinery and equipment          394
18.6: Other wholesale trade                           397




              European business — Facts and figures                3
Contents


    Retail trade and repair                                                                        399
    19.1: Non-specialised in-store retailing                                                       408
    19.2: Specialised in-store food retailing                                                      410
    19.3: Specialised in-store retailing other than food                                           413
    19.4: Second-hand goods retailing in stores                                                    416
    19.5: Retail sales not in stores                                                               417
    19.6: Repair of personal and household goods                                                   419
    Accommodation and food services                                                                421
    20.1: Accommodation services                                                                   428
    20.2: Restaurants, bars and catering                                                           431
    Transport and storage                                                                          435
    21.1: Rail transport                                                                           445
    21.2: Road and other land transport                                                            447
    21.3: Pipelines                                                                                450
    21.4: Water transport                                                                          451
    21.5: Air transport                                                                            454
    21.6: Warehousing and transport support activities                                             457
    21.7: Activities of travel agencies                                                            460
    Media and communications                                                                       465
    22.1: Publishing                                                                               472
    22.2: Printing and reproduction of recorded media                                              473
    22.3: Post and courier activities                                                              475
    22.4: Telecommunication services                                                               478
    Real estate and renting and leasing                                                            483
    23.1: Real estate services                                                                     489
    23.2: Renting and operating leasing                                                            491
    Research and development                                                                       495
    Business services                                                                              501
    25.1: Computer and information services                                                        509
    25.2: Professional business services                                                           511
    25.3: Technical business services                                                              514
    25.4: Advertising                                                                              515
    25.5: Personnel services                                                                       517
    25.6: Other business services                                                                  519
    Financial and insurance services                                                               523
    26.1: Financial intermediation                                                                 527
    26.2: Funds and similar financial entities                                                     532
    26.3: Insurance and pension funds                                                              534
    26.4: Financial auxiliaries                                                                    537
    Background information                                                                         543
    Notes on data sources                                                                          545
    Abbreviations                                                                                  556




4                                                          European business — Facts and figures
Introduction


Introduction                                           complemented by sector specific information that
                                                       highlights aspects of specific concern and distin-
                                                       guishing features. Each chapter concludes with
Objectives, scope and structure                        a statistical annex presenting a selection of the
of the publication                                     most important indicators. The analyses focus on
This publication gives a comprehensive picture         the EU-27, while available data for the Member
of the structure, development and characteristics      States and for Norway are included (subject to
of European business and its different activities:     availability).
from mining and quarrying, through manufac-
turing activities, to energy transmission and re-      Changes compared with
cycling, construction and a range of services. It      the previous edition
presents the latest available statistics (extracted
                                                       This edition of European business continues the
in December 2008 and January 2009) from a
                                                       efforts made in recent years to focus increasingly
wide selection of statistical sources describing for
                                                       on official statistics, and to broaden and deepen
each activity: output and employment; country
                                                       the analysis as the European statistical system
specialisation and regional distribution; gross
                                                       continues to make advances. A particular effort
operating and tangible investment expenditure,
                                                       has been made in this edition to include, where
productivity and profitability; the importance of
                                                       available, data at the most detailed activity level
small and medium sized enterprises (SMEs); la-
                                                       (NACE four digit or class level) and to facilitate
bour force characteristics.
                                                       further comparisons across the different ac-
All of the statistical information contained with-     tivities of the business economy (chapters and
in this publication is structured according to the     subchapters).
NACE Rev. 1.1 classification of economic activi-
                                                       A number of changes in the structure and organi-
ties or the related CPA classification of products
                                                       sation of the chapters have been made when com-
from 2002, although there are older and more
                                                       pared with the 2007 edition, essentially to try to
recent versions of both of these classifications.
                                                       follow more closely the NACE classification and
Within the text, all subsequent references to the
                                                       to re-align chapter definitions with those activi-
term NACE refer to NACE Rev. 1.1 and CPA to
                                                       ties covered by the SBS Regulation.
CPA 2002. The statistics in this publication cov-
er what is referred to as the business economy,        1. Chapter 2 (mining and quarrying): has been
defined here as the sum of industry, construc-            moved to the start of the sectoral chapters
tion and services (NACE Sections C to K). The             to reflect its position within the NACE
publication does not cover agriculture, forestry          classification, and has been split from fuel
and fishing, nor the public administration and            processing and energy activities;
largely non-market services such as education          2. Chapter 6 (fuel processing and chemicals):
and health. Note that because of a lack of stand-         this chapter has been created by taking what
ard business statistics, financial services are kept      used to be part of the energy chapter and
separate from the other sectors, and comparisons          combining it with one of its main downstream
are made throughout the publication against a             industrial activities, namely, the manufacture
benchmark called the non-financial business               of chemicals;
economy (as defined by NACE Rev. 1.1 Sections          3. Chapter 7 (rubber and plastics): have been
C to I and K).                                            split from the previous chapter, where they
                                                          used to be treated together with chemicals;
The first chapter provides a general overview of
                                                       4. Chapter 14 (network supply of electricity, gas
the EU-27’s business economy, with comparisons
                                                          and steam): this is a new chapter that has also
made across the main sectors. In addition, some
                                                          been created as a result of splitting up the
information of a cross-sectoral nature is present-
                                                          energy-related activities;
ed, such as energy costs, business demography,
                                                       5. Chapter 24 (research and development):
the importance of foreign controlled enterprises,
                                                          previously covered together with real estate
etc.
                                                          and renting (Chapter 23), has been given its
It is followed by 25 sectoral chapters, consisting        own chapter;
of an overview of the activity in question, usually    6. Chapter 26 (financial and insurance services):
followed by a number of subchapters that ana-             a new subchapter on funds and similar
lyse its component activities. The chapters and           financial entities has been included.
subchapters present a standard set of information




              European business — Facts and figures                                                          5
Introduction


    Data sources                                             as the price of goods and services with respect to
                                                             suppliers or customers abroad is (at least in part)
    The main part of the analysis contained within
                                                             likely to reflect exchange rate fluctuations.
    European business is derived from structural
    business statistics (SBS), including core, busi-         These exchange rate movements are inherent
    ness statistics which are disseminated regularly,        within all the monetary indicators that are pre-
    as well as information compiled on a multi-yearly        sented in this publication, as data are consist-
    basis, and the latest results from development           ently shown in the euro (EUR) denomination. As
    projects.                                                such, exchange rate fluctuations should be born
                                                             in mind when analysing the evolution of series
    Other data sources which are used extensively
                                                             over time, especially between euro area and non-
    throughout the publication include short-term
                                                             euro area countries. The final section of this pub-
    statistics (STS), the labour force survey (LFS),
                                                             lication contains a table showing exchange rates
    PRODCOM (statistics by product) and external
                                                             against the euro for the period 1997 to 2007.
    trade (the last two are only used for industrial
    chapters). In addition, use has also been made
                                                             Dedicated website
    of specialist sources for particular areas, nota-
    bly transport, energy, research and development,         The structural business statistics dedicated sec-
    environment, tourism and information society             tion (which may be found on the Eurostat web-
    statistics.                                              site) has been compiled by Eurostat’s structural
                                                             business statistics unit. It provides access to a
    This edition of European business has also ben-
                                                             selection of publications, data and background
    efited from the co-operation of a wide range of
                                                             information describing European business. It
    professional trade associations (representative or-
                                                             includes a presentation of the statistics by topic
    ganisations) and other non-official bodies. Tables
                                                             (including special topics such as globalisation,
    and figures based on data from these non-official
                                                             SMEs, foreign controlled enterprises, etc). All the
    sources are clearly sourced.
                                                             chapters of European business: facts and figures
                                                             in PDF format and MS Excel fi les containing the
    Time frame                                               data used in the tables and figures can be down-
    The majority of the data presented within this           loaded from here, free of charge. The structural
    edition of European business was extracted from          business statistics dedicated section is located
    Eurostat databases during December 2008 and              directly under the theme Industry, trade and
    January 2009. The text was written during the            services on the Eurostat website or by using the
    first quarter of 2009. Data are generally available      following link:
    up to the 2006 reference year for structural busi-
                                                             http://epp.eurostat.ec.europa.eu/portal/page/
    ness statistics, and up to 2007 for the other official
                                                             portal/european_business/introduction.
    sources.
                                                             There are also dedicated sections available for:
    Exchange rates                                           •   Short-term business statistics: http://epp.
    The competitiveness of an economy can be radi-               eurostat.ec.europa.eu/portal/page/portal/
    cally changed as a result of movements in cur-               short_term_business_statistics/introduction;
    rency exchange rates. Euro exchange rates were           •   Statistics by product: http://epp.eurostat.
    fi xed for eleven Member States in 1999; Greece              ec.europa.eu/portal/page/portal/prodcom/
    subsequently joined the euro area in 2001, and               introduction, and;
    was followed by Slovenia at the start of 2007, Cy-       •   External trade: http://epp.eurostat.ec.europa.
    prus and Malta at the start of 2008, and Slovakia            eu /por ta l /page/por ta l /ex ter na l _t rade/
    at the start of 2009.                                        introduction.
    Fixed exchange rates, or a common currency               More statistics available on-line
    such as the euro, can reduce uncertainty, particu-
                                                             This publication presents only a selection of the
    larly for enterprises that have a high propensity to
                                                             data available. Readers who are interested in
    import or export goods and services from or to
                                                             knowing more about a certain topic or sector, or
    other countries using the same or linked curren-
                                                             accessing a longer time-series, or downloading
    cies. For those enterprises that operate across cur-
                                                             the freshest data are encouraged to consult (free-
    rency borders, for example into or out of the euro
                                                             of-charge) Eurostat’s website: http://ec.europa.eu/
    area, there may be a higher degree of uncertainty,
                                                             eurostat.




6                                                            European business — Facts and figures
Introduction


Main tables                                             Structural business statistics (SBS)
There are a number of ways for users to access/         Annual structural business statistics are available
extract data. The most simple is to use what are        as part of the industry, trade and services domain
referred to as main tables (automatically up-           of the Eurostat statistics database (available on
dated), presenting selected, key indicators. Main       the Eurostat website). The first heading of this
tables are available for practically the full range     branch concerns SBS – Main indicators, the first
of subjects for which Eurostat has data, not just       table (European business) presents the majority
business statistics.                                    of the important indicators used in the publica-
                                                        tion across a full range of NACE divisions, while
For structural business statistics there are a set of
                                                        a second table presents summary indicators by
main tables which provide an overview of busi-
                                                        size class.
ness structures in the countries and/or for the
EU as a whole, as well as tables which provide se-      Thereafter the tables are structured by activity,
lected data for specific sectors: industry and con-     again these include the main structural vari-
struction, distributive trades, services and finan-     ables (such as value added and employment), as
cial services. Most tables contain data by country      well as derived indicators (including apparent
and years; these are only available with a limited      labour productivity, average personnel costs and
activity breakdown. They are complemented by            wage adjusted labour productivity). However, the
some tables which show a more detailed activity         list of indicators is considerably longer than the
breakdown only for the EU-27 aggregate.                 main indicators that are used within European
                                                        business and the size class summary tables. In-
Complete database                                       deed, the data set covers all variables collected
                                                        under the SBS Regulation, as well as a number
Database access allows users to select informa-
                                                        of derived indicators based on these. As the data
tion from the whole data set, based on user de-
                                                        are split according to activity, users who wish to
fined data extractions. This option should be used
                                                        obtain data across all NACE will need to make a
by those who wish to make their own selection of
                                                        number of extractions. Note that the data under
statistics. The data that is returned when query-
                                                        the heading annual enterprise statistics do not in-
ing the database may be extracted in a variety of
                                                        clude much information for financial intermedia-
formats:
                                                        tion (NACE Section J), as specific tables are pro-
i. as an HTML page for an Internet browser;             vided for credit institutions, insurance services,
ii. as a tab delimited fi le for a spreadsheet          and pension funds.
     application, or;
                                                        The next heading in the SBS data tree contains the
iii. as a flat text fi le for a database application.
                                                        information that was used to construct the maps
                                                        that are presented in the overview of each chap-
                                                        ter, in other words, annual regional statistics.
                                                        The link below takes the user into the Eurostat
                                                        database at the point where the SBS data tree can
                                                        be expanded, from where tailor-made extractions
                                                        can be made, specifying all of the dimensions of
                                                        the data request, including the countries, time
                                                        periods, indicators, and units.
                                                        To extract data: http://epp.eurostat.ec.europa.
                                                        eu/portal/page/portal/european_business/data/
                                                        database.




              European business — Facts and figures                                                           7
Introduction


    Special topics for structural business                  The structure of the tables presented for construc-
    statistics                                              tion follows very closely the structure used for
                                                            industry, with separate tables for indices of pro-
    In addition to those tables which are documented        duction, new orders, labour input, construction
    above, there is also more specific SBS information      costs for new residential buildings, and building
    on a collection of particular topics, such as:          permits (number of dwellings and area).
    •   Business demography                                 The structure of the tables for distributive trades
    •   Business registers                                  and other services is somewhat different, as the
    •   Business services                                   information is initially divided according to the
    •   Demand for services                                 activity under analysis, with separate tables for
    •   Entrepreneurship indicators                         wholesale and retail trade, and for other services.
    •   EuroGroups register
    •   Factors of business success                         To extract data: http://epp.eurostat.ec.europa.eu/
    •   Foreign-controlled enterprises                      portal/page/portal/short_term_business_statistics/
    •   Globalisation                                       data/database.
    •   Inter-enterprise relations
    •   International sourcing                              PRODCOM
    •   Regional structural business statistics             Information on product statistics (PRODCOM)
    •   Small and medium-sized enterprises (SMEs)           is also available as part of the industry, trade and
    To extract data: http://epp.eurostat.ec.europa.         services domain, under a separate heading called
    eu/portal/page/portal/european_business/data/           Statistics by product. This set of data is quite par-
    database.                                               ticular insofar as the links presented take the user
                                                            to either a set of MS Excel spreadsheets or a data-
    Short-term business statistics                          base application (rather than the standard inter-
                                                            face used for most Eurostat data). The application
    The information on short-term business statis-          presents the user with the choice of extracting
    tics (STS) is also available as part of the industry,   external trade or PRODCOM data (annual or
    trade and services domain on the Eurostat web-          monthly). The interface permits the selection of
    site. The data are structured under three main          the country, PRODCOM code (PRCCODE), vol-
    headings: industry; construction; and trade and         ume or value data (measurement unit), period,
    other services.                                         and indicator (production, imports or exports).
    Within the industry domain the data is broken           The application also allows for exports and im-
    down according to the indicators specified in the       ports to be extracted at the same time. In order to
    STS Regulation. There are tables presented for          make user-defined queries of PRODCOM data:
    indices of production, import prices, turnover,         http://epp.eurostat.ec.europa.eu/newxtweb/. In
    new orders, labour input (number of persons em-         order to use/downloaded PRODCOM data in MS
    ployed; volume of work done/hours worked, gross         Excel format: http://epp.eurostat.ec.europa.eu/
    wages and salaries), and producer (output) prices.      portal/page/portal/prodcom/data/tables_excel.
    A number of tables exist for each of these indices,
    with monthly, quarterly and annual frequencies
    often available, while there may be different pres-
    entations for certain indices (gross, working day
    adjusted, seasonally adjusted, or trend cycle).




8                                                                                European business — Facts and figures
Business economy overview
1    Business economy overview


     At the time of writing, global, economic events        spread to other activities – such as, motor vehi-
     were unfolding. Following the collapse of banks,       cle manufacturing and airlines. Alternatively, at
     and intense pressure on banking systems, falling       the time of writing, several Member States have
     stock market indices, and in many cases falling        been permitted to introduce direct-aid schemes,
     housing prices, there was evidence an economic         whereby up to EUR 500 thousand could be given
     downturn. This was apparent in terms of falling        to businesses in financial difficulty.
     demand, waning business and consumer confi-
     dence, lower industrial output and reduced vol-
     umes of retail sales.
                                                            1.1: Macro-economic outlook
     In this economic environment, the renewed Lis-         Gross domestic product (GDP)
     bon strategy (as reiterated in 2005), which seeks
     to foster economic dynamism and help create            The most common indicator for measuring a na-
     more and better jobs, faces greater challenges.        tion’s economic activity is gross domestic prod-
     The strategy undertakes to ensure that business-       uct (GDP). This indicator covers the production
     es can compete openly and fairly, while making         activity of resident producers, calculated as the
     Europe an attractive place to invest and work in.      sum of gross value added from all activities/in-
     Enterprise policy within the EU aims to create an      dustries within an economy.
     environment that encourages entrepreneurs and          It is important to consider the cyclical changes
     businesses to flourish. There are a wide range of      in GDP over the past decade when reading the
     initiatives intended to increase competitiveness       sectoral chapters that follow, as the evolution of
     or nurture European businesses, in particular,         output or sales in many activities follows closely
     small and medium-sized enterprises (SMEs).             the economic cycle of the whole economy. GDP
     Current enterprise policy (more details at: http://    growth in the EU-27 rose at a relatively fast pace
     ec.europa.eu/enterprise/index_en.htm), aims to:        during the late 1990s, with annual rates of growth
     •   promote entrepreneurship, competitiveness,         peaking in 2000 at 3.9 %, after which there was a
         productivity growth, innovation, access to         slowdown in the pace at which economic activ-
         funding, and support networks;                     ity expanded, in particular for 2002 and 2003.
     •   implement a flexible and simplified regulatory     The EU-27’s GDP growth thereafter accelerated
         and administrative framework;                      with rapid expansions in 2006 (3.1 %) and 2007
     •   open-up markets;                                   (2.9 %). At the time of writing, latest forecasts
     •   encourage businesses to adapt to structural        for 2008 show a considerable slowdown in activ-
         change;                                            ity, with the rate of GDP growth almost halving
     •   ensure coordination and balance between            between 2007 and 2008, while forecasts for 2009
         industrial, energy and environmental               from a range of international organisations point
         policies.                                          to global growth rates close to zero.
     In order to sustain its ambitions, many com-           Figure 1.1 shows the evolution of constant price
     mentators argue that Europe needs to accelerate        GDP (at fi xed 2000 exchange rates) between 1998
     reform, becoming more entrepreneurial, making          and 2008 in the Triad economies of the EU-27, Ja-
     business easier to carry out, while at the same time   pan and the United States (forecasts are included
     promoting sustainability through protection of         for 2008). GDP rose on average by 2.3 % per an-
     the environment and social values. Others would        num in the EU-27 during the period concerned,
     argue that in periods of economic recession, it is     which was below the rate recorded for the United
     understandable that governments encourage the          States (2.8 % per annum), but higher than that for
     consumption of home-produced goods. Indeed,            Japan (1.6 % per annum).
     recent political debate has centred on evidence of     The level of GDP, per se, says little about the eco-
     a more protectionist stance: for example, moves        nomic performance of a country. In order to nor-
     to protect activities that are considered to be of     malise GDP, one of the most common approaches
     particular national importance, threats to the         is to use GDP per capita (obtained by dividing GDP
     free movement of workers, or non-compliance            by the number of inhabitants in a country/region).
     with Stability and Growth Pact rules. Support for      This indicator is often used as a measure of living
     failing sectors of the economy has been most no-       standards. For international comparisons, GDP
     table within the banking sector, but subsequently      per capita should ideally be calculated in terms of




10                                                          European business — Facts and figures
Business economy overview                           1
Figure 1.1: Business economy overview
GDP at market prices in constant prices (EUR billion, chain-linked volumes, at 2000 exchange rates)
 15 000




 10 000




  5 000




       0
                 1998      1999         2000         2001         2002         2003       2004           2005         2006         2007      2008 (1)
                                                                                       US
                                                                                       EU-27
                                                                                       JP
(1) Forecasts.
Source: Eurostat (Economy and finance)


purchasing power standards (PPS) (1). Figure 1.2                               accounted for 28.1 % of the EU-27 total in 2007.
shows that Luxembourg had by far the highest lev-                              Distribution, hotels, restaurants and catering
el of GDP per capita in PPS terms in 2007, at just                             (HORECA), communications and transport serv-
over three times the EU-27 average, well above the                             ices (NACE Sections G to I) and industry (NACE
next highest figures that were recorded for Ireland                            Sections C to E) both accounted for slightly more
and Denmark (where GDP per capita was 76 %                                     than a fift h of the EU-27’s economic output. Con-
and 67 % above the EU-27 average). At the other                                struction (NACE Section F) registered a 6.5 %
end of the range, the 12 Member States that joined                             share, while among those activities not covered
the EU in 2004 or 2007, as well as Spain, Greece                               within this publication, the lion’s share of the re-
and Portugal, all reported GDP per capita below                                maining added value (22.4 % of the EU-27 total)
the EU-27 average. The lowest standard of living                               was generated by public administration, health,
(using this measure) was recorded in Romania and                               education, other services and households (NACE
in Bulgaria, where this ratio was less than a quar-                            Sections L to P); the outstanding 1.8 % of value
ter of the EU-27 average.                                                      added was attributed to agriculture, hunting, for-
                                                                               estry and fishing (NACE Sections A and B).
Structure of the EU economy – an                                               The structure of economic output within the
overview                                                                       EU-27 has generally shifted away from traditional
According to national accounts, the group of                                   economic sectors such as agriculture or industry,
activities covered by this publication – hereafter                             towards services. This trend may, at least in part,
referred to as the business economy (NACE Sec-                                 be attributed to the outsourcing phenomenon, as
tions C to K) – accounted for 75.8 % of the to-                                supporting and ancillary operations which were
tal value added generated in the EU-27 in 2007                                 previously done in-house are awarded to outside
(see Figure 1.3). This marked an increase of 0.9                               contractors (for example, transport services or lo-
percentage points when compared with the cor-                                  gistics, information technology, accounting and
responding share of a decade before.                                           payroll services, or industrial cleaning). Inter-
                                                                               national outsourcing implies that an enterprise
The largest sector (in terms of value added gener-                             contracts out work to external suppliers from
ated) was financial, real estate, renting and busi-                            another country, whereas off-shoring is when
ness activities (NACE Sections J and K), which                                 an enterprise maintains control/ownership of a
(1) A purchasing power parity is a currency conversion rate that allows indicators expressed in national currency to be converted to an artificial common
    currency while adjusting for different price levels between countries; this artificial common currency is called the purchasing power standard (note
    that EU-27 values are unchanged in euro and PPS terms).




                    European business — Facts and figures                                                                                                  11
1                                Business economy overview


     Figure 1.2: Business economy overview                        Figure 1.3: Business economy overview
     GDP per capita at market prices, 2007                        Breakdown of value added in current prices, EU-27
     (EU-27=100, based on PPS)                                    (% of total value added)
               0      50   100    150   200   250   300   350
                                                                                                              1997
      EU-27
                                                                                                             Agriculture,
         LU
                                                                                                               hunting,
          IE                                                                      Public admin.;
                                                                                                              forestry &
        DK                                                                           health;
                                                                                                                fishing
         SE                                                                         education;
                                                                                                                 2.8%
         NL                                                                       other services;
                                                                                   households                                   Industry
          FI
                                                                                      22.3%                                      23.3%
         UK
         AT
         BE
         FR
         DE                                                                                                                          Construction
          IT                                                                                                                            5.6%
         ES                                                               Financial, real
                                                                              estate,                                             Distribution;
         EL
                                                                            renting &                                              HORECA;
         CY
                                                                             business                                              transp. &
          SI
                                                                             activities                                              comm.
         PT
                                                                              24.8%                                                  21.3%
        MT
         CZ
                                                                                                              2007
         EE
         SK                                                                                                  Agriculture,
        HU                                                                                                hunting, forestry &
         LV                                                                     Public admin.;                 fishing
                                                                              health; education;                1.8%
         LT
                                                                               other services;
         PL                                                                                                                     Industry
                                                                                 households
      RO (1)                                                                                                                     20.1%
                                                                                    22.4%
         BG
        NO
          IS
                                                                                                                                     Construction
        CH
                                                                                                                                        6.5%
         US
          JP
         HR
      TR (1)                                                                  Financial, real                                     Distribution;
      MK (1)                                                                 estate, renting &                                  HORECA; transp. &
                                                                            business activities                                      comm.
     (1) Forecasts.                                                                                                                  21.1%
                                                                                  28.1%
     Source: Eurostat (Economy and finance)

                                                                  Source: Eurostat (Economy and finance)


                                 production/service facility that moves abroad.             chances of market entry in an untapped region.
                                 These phenomena are examples of how structural             However, the process is not restricted to indus-
                                 changes may take place in the European business            trial activities, as several services have followed
                                 economy, as enterprises relocate in the face of            a similar pattern, for example, call centres, fi-
                                 relatively high wages and increased global trade           nancial and computer services, or research and
                                 that have driven out (in particular) price sensitive       development activities. These changes in the way
                                 segments of the EU-27 economy to lower labour              that enterprises do business may, at least in part,
                                 cost regions. As such, some industrial enterprises         explain why the share of industry in EU-27 to-
                                 have sought to invest in production facilities in          tal value added declined by 3.2 percentage points
                                 emerging economies to benefit from relatively              between 1997 and 2007, while the largest relative
                                 low unit labour costs and/or to improve their              gains were concentrated among financial, real




12                                                                                          European business — Facts and figures
Business economy overview                                  1
estate, renting and business activities, where a 3.3    Figure 1.4: Business economy overview
percentage point increase was registered.               Breakdown of employment, EU-27 (% of total employment)
Just under two thirds (65.3 %) of the EU-27’s work-
                                                                                                1997
force were employed within the business econo-
my in 2007 (see Figure 1.4); this was more than                                                   Agriculture,
10 percentage points lower than the correspond-                      Public admin.;             hunting, forestry
                                                                                                   & fishing
ing share of the business economy in total value                        health;
                                                                    education; other                 8.0%
added. The difference could be largely attributed
to the relatively low share of persons employed                        services;
                                                                      households
in financial, real estate, renting and business ac-
                                                                        27.8%                                          Industry
tivities (15.1 % of the total workforce, compared                                                                       21.1%
with a 28.1 % share of total value added). In con-
trast, agriculture, hunting, forestry and fishing;
construction; distribution, HORECA, communi-
cations and transport services; as well as public                                                                     Construction
administration, health, education, other services                   Financial, real                                      6.9%
and households were all relatively labour-inten-                   estate, renting &
sive. Indeed, the largest employer in the EU-27 in                     business
2007 (on the basis of national accounts data) was                      activities                     Distribution;
                                                                        11.7%                        HORECA; transp.
public administration, health, education, other
                                                                                                       & comm.
services and households, accounting for almost                                                           24.5%
three out of every ten persons (28.9 %). Just over
a quarter (25.3 %) of the EU-27’s workforce was                                                 2007
employed in distribution, HORECA, communi-                                                         Agriculture,
cations or transport services.                                        Public admin.;            hunting, forestry &
                                                                    health; education;               fishing
Structural differences between the                                   other services;                  5.8%
Member States                                                          households
                                                                          28.9%                                     Industry
Figure 1.5 shows the relative contribution of the                                                                    17.6%
six national accounts activity aggregates to total
value added in 2007. The structural differences
observed between the Member States should be
                                                                                                                        Construction
borne in mind when reading the sectoral chap-
                                                                                                                           7.4%
ters of this publication. In particular, it is impor-
tant to consider the relative weight of those sec-
tors that are not included in the main body of the                   Financial, real
publication, as agriculture, hunting, forestry and                  estate, renting &                       Distribution;
                                                                   business activities                    HORECA; transp. &
fishing, and more particularly, public adminis-
                                                                         15.1%                                 comm.
tration, health, education, other services and
                                                                                                               25.3%
households can often account for a relatively high
share of economic activity. However, the relative       Source: Eurostat (Economy and finance)
weight of these two activities does not have a di-
rect impact on the calculation of shares and ratios
that are presented throughout the publication as
the non-financial business economy is often used        30.6 % in Malta, falling to almost half this level
as the denominator when creating indicators for         in Luxembourg (16.6 %). The relative importance
analysis.                                               of agriculture, hunting, forestry and fishing was
                                                        particularly high in Romania and Bulgaria (7.5 %
On average, agriculture, hunting, forestry and          and 6.2 %), while upwards of 25 % of total value
fishing and public administration, health, edu-         added was generated by public administration,
cation, other services and households accounted         health, education, other services and house-
for 24.2 % of total value added in the EU-27 in         holds in Malta, Denmark, Portugal, Sweden and
2007. Their share of total value added peaked at        France.




              European business — Facts and figures                                                                                    13
1                              Business economy overview


     Figure 1.5: Business economy overview                                             Among the activities covered by the sectoral
     Breakdown of gross value added at basic prices, 2007                              chapters of this publication, Luxembourg, France
     (% share of total gross value added)                                              and the United Kingdom were all relatively spe-
                                                                                       cialised in financial, real estate, renting and busi-
                0%            25%              50%              75%             100%
                                                                                       ness activities, as these activities accounted for
      EU-27                                                                            upwards of 30 % of their total value added (ris-
          BE                                                                           ing to 47.3 % in Luxembourg). Industrial activi-
          BG                                                                           ties were particularly concentrated within cen-
          CZ                                                                           tral Europe, with the highest shares of industry
          DK                                                                           in total value added being recorded in the Czech
          DE                                                                           Republic, Slovakia, Germany, Romania and Slov-
          EE                                                                           enia. In contrast, the tourism-rich economies of
           IE                                                                          Greece, Cyprus and Malta were joined by the Bal-
          EL                                                                           tic States and Poland, where distribution activi-
          ES                                                                           ties accounted for a relatively high share of value
          FR
                                                                                       added, as the Member States that displayed the
           IT
                                                                                       highest degree of specialisation in distribution,
          CY
                                                                                       HORECA, communications and transport serv-
                                                                                       ices. The most specialised Member States within
          LV
                                                                                       the construction sector were Spain (12.3 % of to-
          LT
                                                                                       tal value added), Romania (10.3 %) and Lithuania
          LU
                                                                                       (10.2 %).
         HU
         MT                                                                            Figure 1.6 shows a similar breakdown for em-
          NL                                                                           ployment: the main difference is the striking
          AT                                                                           number of persons employed within agriculture,
          PL                                                                           hunting, forestry and fishing activities in Roma-
          PT                                                                           nia (2006), Bulgaria and Poland (2006), a share
          RO                                                                           that rose to 30.6 % in Romania. The relative im-
           SI                                                                          portance of public administration, health, edu-
          SK                                                                           cation, other services and households was also
           FI                                                                          generally higher in relation to employment when
          SE                                                                           compared with value added. Indeed, as many as
          UK                                                                           39.0 % of the Swedish workforce were occupied in
          HR
                                                                                       these activities in 2007, and upwards of one third
      MK (1)
                                                                                       of the total in France (2006), Denmark, Belgium
          TR
                                                                                       and Finland.
       IS (1)
         NO
                                                                                       Future challenges; information
          CH                                                                           technology and climatic change
                                                                                       In its mid-term review of industrial policy
                        Agriculture, hunting, forestry & fishing
                        Industry                                                       (COM(2007) 374), the European Commission
                        Construction                                                   identified some key challenges facing European
                        Distribution; HORECA; transp. & comm.
                        Financial, real estate, renting & business activities
                                                                                       business, in particular, the intensified impact of
                        Public admin.; health; education etc.                          globalisation and technological change, the chal-
     (1) 2006.                                                                         lenges posed by climate change, and the possibili-
     Source: Eurostat (Economy and finance)                                             ties for exploring opportunities relating to new
                                                                                       low-energy and resource-saving processes and
                                                                                       products.




14                                                                                     European business — Facts and figures
Business economy overview                                     1
One basic indicator to measure the take-up of in-                                Figure 1.6: Business economy overview
formation technology is the Internet penetration                                 Breakdown of employment, 2007
rate. The proportion of EU-27 enterprises having                                 (% share of total employment)
access to the Internet in 2008 was 93 % (2), while
                                                                                             0%                  25%                   50%            75%        100%
81 % of all enterprises had a broadband connec-
tion (see Figure 1.8). This latter share ranged from                               EU-27
92 % in France, Spain and Finland, to less than                                        BE
two thirds of all enterprises in Bulgaria, Latvia,
                                                                                       BG
Poland, Lithuania and Romania (where the low-
                                                                                       CZ
est share of 44 % was registered).
                                                                                       DK
Aside from its potential for making business
                                                                                       DE
more productive and efficient, the Internet also
                                                                                       EE
offers a range of opportunities for e-commerce,
both with other businesses (B2B), as well as final                                      IE
consumers (B2C). A relatively small proportion                                          EL
of enterprises (16 %) in the EU-27 received orders                                     ES
on-line in 2008, with this latest figure represent-                                FR (1)
ing a gain of four percentage points in relation to
                                                                                        IT
2005 (see Figure 1.9). The likelihood that an en-
                                                                                       CY
terprise received orders on-line rose as a function
of its average size, from 15 % for small enterprises                                   LV
to 33 % for large enterprises.                                                         LT
                                                                                       LU
Some 28 % of enterprises in the EU-27 in 2008
made on-line purchases, which was also four per-                                      HU
centage points higher than in 2005. As with sales                                 MT (2)
through the Internet, the highest proportion of                                        NL
enterprises making purchases over the Internet                                         AT
was recorded among large enterprises (42 %).
                                                                                   PL (1)
Note, however, that the pace at which Internet
                                                                                       PT
sales and purchases grew between 2005 and 2008
was fastest among small enterprises.                                               RO (1)
                                                                                        SI
The EU has set ambitious environmental goals to
                                                                                       SK
increase energy efficiency, to reduce greenhouse
gas emissions (by at least 20 % by 2020), to pro-                                       FI
mote renewable energy sources, and to invest in                                        SE
a range of environmental industries. Figure 1.10                                       UK
shows that there have been sizeable reductions in                                     NO
national emissions across the EU-27, on the ba-
                                                                                   CH (1)
sis of a comparison with 1990 – in particular for
ozone precursors, particulate matter and acidi-                                                          Agriculture, hunting, forestry & fishing
fying pollutants. Figure 1.11 presents more de-                                                          Industry
                                                                                                         Construction
tail in relation to the main sources of emissions,                                                       Distribution; HORECA; transp. & comm.
with fuel consumption for transport and within                                                           Financial, real estate, renting & business activities
energy-producing industries generally account-                                                           Public admin.; health; education etc.
able for the highest levels. Energy-producing in-                                (1) 2006.
                                                                                 (2) Not available.
dustries and transport accounted for almost one
                                                                                 Source: Eurostat (Economy and finance)
third and one fift h (31 % and 19 %) of all green-
house gas emissions in 2006. Between 1990 and
2006 there was a general trend for EU-27 emis-
sions from energy-producing industries and from
industrial and construction activities to fall (as a
share of total emissions), while the share of emis-
sions from transport tended to rise.

(2) Information covers enterprises with 10 or more persons employed in NACE Sections D, F, G, I and K, as well as Groups 55.1, 55.2, 92.1 and 92.2.




                     European business — Facts and figures                                                                                                              15
1                                 Business economy overview


     Figure 1.7: Business economy overview
     Use of computers and the Internet by enterprises, EU-27 (%) (1)
       100



         75



         50



         25



            0
                  Using computers            Having access           Broadband access              Using a LAN                  Using a            Using the Internet for
                                             to the Internet                                                                  wireless LAN         banking and financial
                                                                                                                                                          services

                                                          2005                                                               2008

     (1) Information covers enterprises with 10 or more persons employed in NACE Rev. 1.1 Sections D, F, G, I and K, as well as Groups 55.1, 55.2, 92.1 and 92.2.
     Source: Eurostat (Information society statistics)




     Figure 1.8: Business economy overview
     Proportion of enterprises having access to the Internet, 2008 (%) (1)
     100



       75



       50



       25



        0
                EU- FI NL DK BE SI AT SE EE LU IE SK ES FR DE CZ IT                                   LT UK EL PL MT PT CY LV HU BG RO IS NO HR
                27                                                                                          (2)                              (2)

                                                                                Total
                                                                                Broadband connection
     (1) Ranked on total proportion of enterprises with a connection; information covers enterprises with 10 or more persons employed in NACE Rev. 1.1 Sections D, F, G,
     I and K, as well as Groups 55.1, 55.2, 92.1 and 92.2.
     (2) 2007.
     Source: Eurostat (Information society statistics)




16                                                                                                        European business — Facts and figures
Business economy overview                       1
Figure 1.9: Business economy overview
Proportion of enterprises purchasing and selling on-line, EU-27 (%) (1)
50


40


30


20


10


  0
           Total            Small          Medium-          Large            Total              Small       Medium-            Large
                                            sized                                                            sized

                        Having purchased on-line                                       Having received orders on-line

                                       2005                                                             2008
(1) Purchases or orders received of at least 1 % during the previous calendar year; information covers enterprises with 10 or more persons
employed in NACE Rev. 1.1 Sections D, F, G, I and K, as well as Groups 55.1, 55.2, 92.1 and 92.2.
Source: Eurostat (Information society statistics)




Figure 1.10: Business economy overview
Development of total national emissions of selected air pollutants, EU-27 (1990=100)
100



  75



  50



  25



      0
          1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

                                                    Greenhouse gases
                                                    Tropospheric ozone precursors
                                                    Primary PM10 and (weighted) PM10 precursors (1)
                                                    Acidifying pollutants
(1) PM10 is particulate matter with an aerodynamic diameter less than or equal to 10 microns.
Source: Eurostat (Air pollution/climate change )




                   European business — Facts and figures                                                                                     17
1    Business economy overview


     Figure 1.11: Business economy overview
     Air emissions: share of selected sources in total emissions, EU-27 (%)
     100


         75


         50


         25


          0
                  1990            2006             1990           2006            1990               2006   1990           2006

                  Greenhouse gases                Tropospheric ozone               Primary PM10 and         Acidifying pollutants
                                                      precursors                   (weighted) PM10
                                                                                     precursors (1)

                                              Industrial processes
                                              Industrial and construction activities - fuel consumption
                                              Transport - fuel consumption
                                              Energy industries - fuel consumption
     (1) PM10 is particulate matter with an aerodynamic diameter less than or equal to 10 microns.
     Source: Eurostat (Air pollution/climate change )




     1.2: Structural profile of the                                         The legislation in respect to structural business
                                                                            statistics was modified in 2002 by a Decision (No
     business economy                                                       2367/2002/EC) of the European Parliament and
     Regulation ((EC) No 58/1997) established a com-                        the Council in order to ensure that the collection of
     mon framework for the collection, compilation,                         statistics was guided by the principal Community
     transmission and evaluation of Community sta-                          policy priorities of economic and monetary union,
     tistics on the structure, activity, competitiveness                    enlargement and competitiveness, regional policy,
     and performance of businesses in the Communi-                          sustainable development and the social agenda.
     ty. These structural business statistics (SBS) con-                    A recast structural business statistics Regulation
     stitute the principal source of information used                       ((EC) No 295/2008) came into force in February
     in this publication. The main SBS aggregates, of-                      2008 and provides ten modules for the produc-
     ten referred to during the course of this publica-                     tion of business statistics. The regulation foresees
     tion, include:                                                         that the first reference year for which statistics
     •    the non-financial business economy (NACE                          will generally be compiled is calendar year 2008;
          Rev. 1.1 Sections C to I and K);                                  in addition the statistics should be collected ac-
     •    industry (NACE Sections Rev. 1.1 C to E);                         cording to the revised classification of economic
     •    construction (NACE Rev. 1.1 Section F), and;                      activities (NACE Rev. 2). This recast Regulation
     •    non-financial services (NACE Rev. 1.1                             should provide for the continuation of existing
          Sections G to I and K).                                           statistical support in current policy areas and
                                                                            satisfy additional requirements arising from new
     Note that financial services (NACE Rev. 1.1 Sec-                       Community policy initiatives, as well as reviews
     tion J) are kept separate (see Chapter 26) because                     of statistical priorities. The Member States will
     of their specific nature and the limited availability                  generally have 18 months to deliver these statis-
     of most standard business statistics in this area.                     tics to Eurostat and hence the data for 2008 is ex-
                                                                            pected to be available by the summer of 2010. As
                                                                            such, this publication continues to present data
                                                                            using the NACE Rev. 1.1 classification of eco-
                                                                            nomic activities.




18                                                                         European business — Facts and figures
Business economy overview                                 1
Table 1.1: Business economy overview
Main indicators for the non-financial business economy, EU-27, 2006 (1)
                                                                 Turnover               Value added           Persons employed
                                                                     (% of non-              (% of non-                 (% of non-
                                                                       financial               financial                  financial
                                                             (EUR     business        (EUR     business                  business
 Chapter                                                  billion) economy)        billion) economy)       (thousands) economy)
 1 Non-financial business economy                          22 311          100.0     5 650         100.0       129 773        100.0
     Industry                                               7 984           35.8     2 004          35.5        36 744         28.3
 2 Mining & quarrying                                          235           1.1         89          1.6           733          0.6
 3 Food, beverages & tobacco                                   942           4.2        197          3.5         4 700          3.6
 4 Textiles, clothing, leather & footwear                      235           1.1         65          1.1         2 998          2.3
 5 Wood & paper                                                300           1.3         78          1.4         1 984          1.5
 6 Fuel processing & chemicals (2)                          1 099            5.3        217          4.0         2 068          1.6
 7 Rubber & plastics                                           275           1.2         78          1.4         1 750          1.3
 8 Other non-metallic mineral products                         242           1.1         80          1.4         1 587          1.2
 9 Metals & metal products                                     864           3.9        244          4.3         5 081          3.9
 10 Machinery & equipment                                      621           2.8        193          3.4         3 650          2.8
 11 Electrical machinery & optical equipment                   710           3.2        203          3.6         3 668          2.8
 12 Transport equipment                                        945           4.2        195          3.5         3 152          2.4
 13 Furniture & other manufacturing                            175           0.8         53          0.9         1 800          1.4
 14 Network supply of electricity, gas & steam                 885           4.0        180          3.2         1 227          0.9
 15 Recycling & water supply                                    91           0.4         31          0.6           521          0.4
 16 Construction                                            1 553            7.0        510          9.0        14 093         10.9
     Non-financial services                                12 774           57.3     3 136          55.5        78 936         60.8
 17 Motor trades                                            1 327            5.9        162          2.9         4 242          3.3
 18 Wholesale trade                                         4 603           20.6        519          9.2         9 962          7.7
 19 Retail trade & repair                                   2 272           10.2        418          7.4        17 472         13.5
 20 Accommodation & food services                              434           1.9        182          3.2         9 266          7.1
 21 Transport and storage                                   1 209            5.4        400          7.1         8 847          6.8
 22 Media & communications                                     792           3.6        350          6.2         4 857          3.7
 23 Real estate, renting & leasing (3)                         650           3.1        340          6.0         3 290          2.6
 24 Research & development (2)                                  43           0.2         22          0.4           400          0.3
 25 Business services                                       1 763            7.9        892         15.8        22 202         17.1
(1) Includes rounded estimates of non-confidential data.
(2) Turnover and value added, 2005.
(3) Turnover and number of persons employed, 2005.
Source: Eurostat (SBS)



Structural profile of the EU-27’s non-                    Business services, retail trade and repair, and
financial business economy                                the construction sector together accounted for
                                                          almost 55 % of all enterprises active within the
There were just over 20 million active enterprises        EU-27’s non-financial business economy in 2006;
within the EU-27’s non-financial business econ-           almost 4.4 million enterprises were active within
omy in 2006 (see Table 1.2). The vast majority of         business services, and nearly 3.8 million within
these (73.9 %) were operating within non-financial        the retail trade and repair sector.
services, while a higher proportion of enterprises
were active in the construction sector (14.4 % of         At the other end of the scale, there were often rela-
the total) than within industry (11.7 %).                 tively few enterprises operating within activities
                                                          characterised by high barriers to entry (such as,
On the basis of the activity aggregates used for the      those with considerable start-up costs to reach a
sectoral chapters that follow in the remainder of         minimum efficient scale of production). These in-
this publication, the highest number of enterpris-        cluded capital-intensive activities such as mining
es were often found in activities that are, to some       and quarrying, transport equipment manufactur-
degree, characterised as having relatively low            ing, the network supply of electricity, gas and steam
barriers to entry, and large, proximity markets.          or recycling and water supply; none of these sectors




                  European business — Facts and figures                                                                               19
1                                 Business economy overview


     Figure 1.12: Business economy overview                                                   sectors together contributed 34.0 % of the value
     Number of enterprises, EU-27, 2006 (thousands) (1)                                       added generated in the EU-27’s non-financial
                                                  0   1 000   2 000   3 000   4 000   5 000   business economy; they were business services,
                                                                                              wholesale trade and construction.
                              Business services
                                                                                              Comparing two output measures, namely value
                         Retail trade & repair
                                                                                              added and turnover, the most noticeable differ-
                                  Construction
                                                                                              ence concerned distributive trade activities (es-
                               Wholesale trade                                                pecially wholesale trade), where these activities
          Accommodation & food services                                                       reported a far higher share of sales. The relatively
              Real estate, renting & leasing                                                  high proportion of turnover occurring within
                      Transport and storage                                                   these activities is a direct consequence of the na-
                                  Motor trades                                                ture of these activities, whereby large volumes
                   Metals & metal products                                                    of products are purchased and resold, normally
                Food, beverages & tobacco                                                     with a relatively small margin. For example,
                  Media & communications                                                      wholesale trade activities accounted for 20.6 % of
     Textiles, clothing, leather & footwear
                                                                                              EU-27 sales in the non-financial business econo-
                                                                                              my in 2006, compared with a 9.2 % share of value
          Furniture & other manufacturing
                                                                                              added. In contrast, the added value of business
                                Wood & paper
                                                                                              services (15.8 % of the non-financial business
      Electrical machinery & optical equip.
                                                                                              economy total) was considerable higher than its
                    Machinery & equipment                                                     share of turnover (7.9 %).
          Other non-metallic mineral prod.
                              Rubber & plastics
                                                                                              In employment terms, the importance of the rel-
                                                                                              atively labour-intensive construction and non-fi-
                       Transport equipment
                                                                                              nancial services sectors was relatively high (when
                   Research & development
                                                                                              compared with value added). Non-financial serv-
               Fuel processing & chemicals                                                    ices accounted for 60.8 % of the EU-27’s non-
                   Recycling & water supply                                                   financial business economy workforce, 28.3 %
      Network supply of elec., gas & steam                                                    were employed in industrial activities and the
                         Mining & quarrying                                                   remaining 10.9 % in the construction sector. At
     (1) Includes some rounded estimates based on non-confidential data.                       a sectoral level, none of the industrial activities
     Source: Eurostat (SBS)                                                                   represented more than 4 % of the employment
                                                                                              total; the highest share being recorded for met-
                                                                                              als and metal products. Among the services, the
                                   accounted for more than 0.2 % of the total number          largest workforces were found within the activi-
                                   of enterprises active in the EU-27’s non-financial         ties of business services (17.1 %) and retail trade
                                   business economy, with fewer than 25 thousand en-          and repair (13.5 %).
                                   terprises operating in mining and quarrying activi-
                                                                                              Differences between the relative shares of total
                                   ties, the network supply of electricity, gas and steam
                                                                                              value added and employment throw some light
                                   or the recycling and water supply sector.
                                                                                              on productivity differentials between activities
                                   The distribution of enterprises across the EU-27           (see Figure 1.13). Apparent labour productivity
                                   economy provides little information when analys-           (defined as value added divided by the number
                                   ing the relative economic importance of the dif-           of persons employed) tended to be highest among
                                   ferent sectors. Economic weight is more generally          those sectors characterised as being capital-inten-
                                   measured in terms of value added. Non-financial            sive or high-tech. The most productive activities
                                   services contributed a 55.5 % share of the total           in the EU-27 (at the sectoral level used for chapters
                                   added value in the EU-27’s non-financial business          in this publication) included real estate, renting
                                   economy in 2006. The proportion accounted for              and leasing (2005), media and communications,
                                   by industrial activities (35.5 %) was 23.8 percent-        fuel processing and chemicals manufacturing
                                   age points higher than the corresponding share of          (2005) and the network supply of electricity, gas
                                   industry in the total number of enterprises. The           and steam. In contrast, the least productive areas
                                   construction sector accounted for the remaining            of the EU-27’s non-financial business economy in
                                   9.0 % of added value in the EU-27’s non-financial          2006 included labour-intensive activities, such as
                                   business economy in 2006. Looking in more de-              the manufacture of textiles, clothing, leather and
                                   tail (using the aggregates defining each sectoral          footwear, the construction sector, accommoda-
                                   chapter in this publication), the three largest            tion and food services, or retail trade and repair.



20                                                                                            European business — Facts and figures
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2009 Eurostat European Business Facts And Figures

  • 1. ISSN 1830-8147 Statistical books European Business Facts and gures 2009 edition
  • 2. Statistical books European Business Facts and figures 2009 edition
  • 3. Europe Direct is a service to help you find answers to your questions about the European Union Freephone number (*): 00 800 6 7 8 9 10 11 (*) Certain mobile telephone operators do not allow access to 00 800 numbers or these calls may be billed. More information on the European Union is available on the Internet (http://europa.eu). Luxembourg: Office for Official Publications of the European Communities, 2009 ISBN 978-92-79-12407-5 ISSN 1830-8147 DOI 10.2785/23246 Cat. No. KS-BW-09-001-EN-N Theme: Industry, trade and services Collection: Statistical books © European Communities, 2009 © Cover photo: Phovoir
  • 4. EUROSTAT L-2920 Luxembourg — Tel. (352) 43 01-1 — website http://ec.europa.eu/eurostat Eurostat is the Statistical Office of the European Communities. Its mission is to pro- vide the European Union with high-quality statistical information. For that purpose, it gathers and analyses figures from the national statistical offices across Europe and provides comparable and harmonised data for the European Union to use in the defi- nition, implementation and analysis of Community policies. Its statistical products and services are also of great value to Europe’s business community, professional organisations, academics, librarians, NGOs, the media and citizens. Eurostat's publications programme consists of several collections: • News releases provide recent information on the Euro-Indicators and on social, economic, regional, agricultural or environmental topics. • Statistical books are larger A4 publications with statistical data and analysis. • Pocketbooks are free of charge publications aiming to give users a set of basic fig- ures on a specific topic. • Statistics in focus provides updated summaries of the main results of surveys, stud- ies and statistical analysis. • Data in focus present the most recent statistics with methodological notes. • Methodologies and working papers are technical publications for statistical experts working in a particular field. Eurostat publications can be ordered via the EU Bookshop at http://bookshop. europa.eu. All publications are also downloadable free of charge in PDF format from the Eurostat website http://ec.europa.eu/eurostat. Furthermore, Eurostat’s databases are freely available there, as are tables with the most frequently used and demanded short- and long-term indicators. Eurostat has set up with the members of the ‘European statistical system’ (ESS) a network of user support centres which exist in nearly all Member States as well as in some EFTA countries. Their mission is to provide help and guidance to Internet users of European statistical data. Contact details for this support network can be found on Eurostat Internet site.
  • 5.
  • 6. Acknowledgements European business – Facts and figures, 2009 edition This publication has been produced by Eurostat unit G2 responsible for structural business statistics. The opinions expressed are those of the individual authors alone and do not necessarily reflect the position of the European Commission. Editor and project co-ordinator Ms Aleksandra Stawińska Eurostat, the Statistical Office of the European Communities Unit G2 Structural business statistics Bâtiment Joseph Bech Rue Alphonse Weicker 5 L-2721, Luxembourg Production Data processing, statistical analysis, design and desktop publishing INFORMA sarl Giovanni Albertone, Simon Allen, Edward Cook, Andrew Redpath Data extracted The data were extracted in December 2008 and January 2009. Contact details For individuals: Eurostat provides a support network at a national and European level. More information including a full list of support centres may be obtained at http://epp.eurostat.ec.europa.eu/portal/page/portal/help/user_support. For journalists: Eurostat media support Tel: (352) 4301 33408 Fax: (352) 4301 35349 eurostat-mediasupport@ec.europa.eu For more information All the chapters of European business: facts and figures in PDF format and MS Excel fi les containing the data used in the tables and figures can be downloaded from the Eurostat website free of charge. The structural business statistics dedicated section is located on the ‘Statistics’ page, under the subheading of ‘Structural business statistics’ under the heading ‘Industry, trade and services’, accessible from the Eurostat homepage, at http://ec.europa.eu/eurostat.
  • 7. Contents Contents Introduction 5 Business economy overview 9 1.1: Macro-economic outlook 10 1.2: Structural profi le of the business economy 18 1.3: Expenditure, productivity and profitability 31 1.4: Enterprise demography and size class analysis 42 1.5: Employment characteristics 50 1.6: Evolution of production, employment and turnover 54 1.7: External trade 59 Mining and quarrying 65 2.1: Extraction of energy producing materials 73 2.2: Non-energy mining and quarrying 79 Food, beverages and tobacco 85 3.1: Meat 95 3.2: Fish 97 3.3: Dairy products 99 3.4: Bread, sugar, confectionery and other food products 101 3.5: Miscellaneous food products 105 3.6: Beverages 108 3.7: Tobacco 111 Textiles, clothing, leather and footwear 115 4.1: Textiles 123 4.2: Clothing 126 4.3: Leather and footwear 130 Wood and paper 135 5.1: Wood and wood products 143 5.2: Pulp, paper and paper products 146 Fuel processing and chemicals 151 6.1: Fuel processing 160 6.2: Basic industrial chemicals (including petrochemicals) 162 6.3: Miscellaneous chemical products 165 6.4: Pharmaceuticals 170 Rubber and plastics 175 7.1: Rubber 182 7.2: Plastics 184 Other non-metallic mineral products 189 8.1: Glass 196 8.2: Ceramic and clay products 199 8.3: Cement and concrete 201 8.4: Stone and miscellaneous non-metallic mineral products 204 2 European business — Facts and figures
  • 8. Contents Metals and metal products 209 9.1: First processing of ferrous metals 217 9.2: Basic precious and non-ferrous metals 220 9.3: Casting 222 9.4: Structural metal products 223 9.5: Boilers, metal containers and steam generators 226 9.6: Other metal processing 228 9.7: Miscellaneous fabricated metal products 230 Machinery and equipment 237 10.1: General purpose machinery 244 10.2: Agricultural and forestry machinery 246 10.3: Industrial processing machinery 248 10.4: Arms and ammunition 251 10.5: Domestic appliances 253 Electrical machinery and optical equipment 257 11.1: Instrument engineering 266 11.2: Computers and office equipment 270 11.3: Electrical machinery and equipment 273 11.4: Radio, television and communication equipment 277 Transport equipment 285 12.1: Motor vehicles, trailers and semi-trailers 294 12.2: Ships and boats 297 12.3: Railway equipment 299 12.4: Aerospace equipment 300 12.5: Miscellaneous transport equipment 302 Furniture and other manufacturing activities 307 13.1: Furniture 313 13.2: Other manufacturing activities 316 Network supply of electricity, gas and steam 321 Water supply and recycling 331 15.1: Water supply 337 15.2: Recycling 339 Construction 345 16.1: Site preparation 354 16.2: General construction 355 16.3: Building installation 357 16.4: Building completion 360 16.5: Renting of construction equipment 363 Motor trades 365 17.1: Motor vehicles and motorcycles distribution 372 17.2: Retail sale of automotive fuel 375 Wholesale trade 379 18.1: Wholesale on a fee or contract basis 387 18.2: Agricultural wholesaling 388 18.3: Wholesaling of consumer goods 390 18.4: Wholesaling of intermediate goods 392 18.5: Wholesaling of machinery and equipment 394 18.6: Other wholesale trade 397 European business — Facts and figures 3
  • 9. Contents Retail trade and repair 399 19.1: Non-specialised in-store retailing 408 19.2: Specialised in-store food retailing 410 19.3: Specialised in-store retailing other than food 413 19.4: Second-hand goods retailing in stores 416 19.5: Retail sales not in stores 417 19.6: Repair of personal and household goods 419 Accommodation and food services 421 20.1: Accommodation services 428 20.2: Restaurants, bars and catering 431 Transport and storage 435 21.1: Rail transport 445 21.2: Road and other land transport 447 21.3: Pipelines 450 21.4: Water transport 451 21.5: Air transport 454 21.6: Warehousing and transport support activities 457 21.7: Activities of travel agencies 460 Media and communications 465 22.1: Publishing 472 22.2: Printing and reproduction of recorded media 473 22.3: Post and courier activities 475 22.4: Telecommunication services 478 Real estate and renting and leasing 483 23.1: Real estate services 489 23.2: Renting and operating leasing 491 Research and development 495 Business services 501 25.1: Computer and information services 509 25.2: Professional business services 511 25.3: Technical business services 514 25.4: Advertising 515 25.5: Personnel services 517 25.6: Other business services 519 Financial and insurance services 523 26.1: Financial intermediation 527 26.2: Funds and similar financial entities 532 26.3: Insurance and pension funds 534 26.4: Financial auxiliaries 537 Background information 543 Notes on data sources 545 Abbreviations 556 4 European business — Facts and figures
  • 10. Introduction Introduction complemented by sector specific information that highlights aspects of specific concern and distin- guishing features. Each chapter concludes with Objectives, scope and structure a statistical annex presenting a selection of the of the publication most important indicators. The analyses focus on This publication gives a comprehensive picture the EU-27, while available data for the Member of the structure, development and characteristics States and for Norway are included (subject to of European business and its different activities: availability). from mining and quarrying, through manufac- turing activities, to energy transmission and re- Changes compared with cycling, construction and a range of services. It the previous edition presents the latest available statistics (extracted This edition of European business continues the in December 2008 and January 2009) from a efforts made in recent years to focus increasingly wide selection of statistical sources describing for on official statistics, and to broaden and deepen each activity: output and employment; country the analysis as the European statistical system specialisation and regional distribution; gross continues to make advances. A particular effort operating and tangible investment expenditure, has been made in this edition to include, where productivity and profitability; the importance of available, data at the most detailed activity level small and medium sized enterprises (SMEs); la- (NACE four digit or class level) and to facilitate bour force characteristics. further comparisons across the different ac- All of the statistical information contained with- tivities of the business economy (chapters and in this publication is structured according to the subchapters). NACE Rev. 1.1 classification of economic activi- A number of changes in the structure and organi- ties or the related CPA classification of products sation of the chapters have been made when com- from 2002, although there are older and more pared with the 2007 edition, essentially to try to recent versions of both of these classifications. follow more closely the NACE classification and Within the text, all subsequent references to the to re-align chapter definitions with those activi- term NACE refer to NACE Rev. 1.1 and CPA to ties covered by the SBS Regulation. CPA 2002. The statistics in this publication cov- er what is referred to as the business economy, 1. Chapter 2 (mining and quarrying): has been defined here as the sum of industry, construc- moved to the start of the sectoral chapters tion and services (NACE Sections C to K). The to reflect its position within the NACE publication does not cover agriculture, forestry classification, and has been split from fuel and fishing, nor the public administration and processing and energy activities; largely non-market services such as education 2. Chapter 6 (fuel processing and chemicals): and health. Note that because of a lack of stand- this chapter has been created by taking what ard business statistics, financial services are kept used to be part of the energy chapter and separate from the other sectors, and comparisons combining it with one of its main downstream are made throughout the publication against a industrial activities, namely, the manufacture benchmark called the non-financial business of chemicals; economy (as defined by NACE Rev. 1.1 Sections 3. Chapter 7 (rubber and plastics): have been C to I and K). split from the previous chapter, where they used to be treated together with chemicals; The first chapter provides a general overview of 4. Chapter 14 (network supply of electricity, gas the EU-27’s business economy, with comparisons and steam): this is a new chapter that has also made across the main sectors. In addition, some been created as a result of splitting up the information of a cross-sectoral nature is present- energy-related activities; ed, such as energy costs, business demography, 5. Chapter 24 (research and development): the importance of foreign controlled enterprises, previously covered together with real estate etc. and renting (Chapter 23), has been given its It is followed by 25 sectoral chapters, consisting own chapter; of an overview of the activity in question, usually 6. Chapter 26 (financial and insurance services): followed by a number of subchapters that ana- a new subchapter on funds and similar lyse its component activities. The chapters and financial entities has been included. subchapters present a standard set of information European business — Facts and figures 5
  • 11. Introduction Data sources as the price of goods and services with respect to suppliers or customers abroad is (at least in part) The main part of the analysis contained within likely to reflect exchange rate fluctuations. European business is derived from structural business statistics (SBS), including core, busi- These exchange rate movements are inherent ness statistics which are disseminated regularly, within all the monetary indicators that are pre- as well as information compiled on a multi-yearly sented in this publication, as data are consist- basis, and the latest results from development ently shown in the euro (EUR) denomination. As projects. such, exchange rate fluctuations should be born in mind when analysing the evolution of series Other data sources which are used extensively over time, especially between euro area and non- throughout the publication include short-term euro area countries. The final section of this pub- statistics (STS), the labour force survey (LFS), lication contains a table showing exchange rates PRODCOM (statistics by product) and external against the euro for the period 1997 to 2007. trade (the last two are only used for industrial chapters). In addition, use has also been made Dedicated website of specialist sources for particular areas, nota- bly transport, energy, research and development, The structural business statistics dedicated sec- environment, tourism and information society tion (which may be found on the Eurostat web- statistics. site) has been compiled by Eurostat’s structural business statistics unit. It provides access to a This edition of European business has also ben- selection of publications, data and background efited from the co-operation of a wide range of information describing European business. It professional trade associations (representative or- includes a presentation of the statistics by topic ganisations) and other non-official bodies. Tables (including special topics such as globalisation, and figures based on data from these non-official SMEs, foreign controlled enterprises, etc). All the sources are clearly sourced. chapters of European business: facts and figures in PDF format and MS Excel fi les containing the Time frame data used in the tables and figures can be down- The majority of the data presented within this loaded from here, free of charge. The structural edition of European business was extracted from business statistics dedicated section is located Eurostat databases during December 2008 and directly under the theme Industry, trade and January 2009. The text was written during the services on the Eurostat website or by using the first quarter of 2009. Data are generally available following link: up to the 2006 reference year for structural busi- http://epp.eurostat.ec.europa.eu/portal/page/ ness statistics, and up to 2007 for the other official portal/european_business/introduction. sources. There are also dedicated sections available for: Exchange rates • Short-term business statistics: http://epp. The competitiveness of an economy can be radi- eurostat.ec.europa.eu/portal/page/portal/ cally changed as a result of movements in cur- short_term_business_statistics/introduction; rency exchange rates. Euro exchange rates were • Statistics by product: http://epp.eurostat. fi xed for eleven Member States in 1999; Greece ec.europa.eu/portal/page/portal/prodcom/ subsequently joined the euro area in 2001, and introduction, and; was followed by Slovenia at the start of 2007, Cy- • External trade: http://epp.eurostat.ec.europa. prus and Malta at the start of 2008, and Slovakia eu /por ta l /page/por ta l /ex ter na l _t rade/ at the start of 2009. introduction. Fixed exchange rates, or a common currency More statistics available on-line such as the euro, can reduce uncertainty, particu- This publication presents only a selection of the larly for enterprises that have a high propensity to data available. Readers who are interested in import or export goods and services from or to knowing more about a certain topic or sector, or other countries using the same or linked curren- accessing a longer time-series, or downloading cies. For those enterprises that operate across cur- the freshest data are encouraged to consult (free- rency borders, for example into or out of the euro of-charge) Eurostat’s website: http://ec.europa.eu/ area, there may be a higher degree of uncertainty, eurostat. 6 European business — Facts and figures
  • 12. Introduction Main tables Structural business statistics (SBS) There are a number of ways for users to access/ Annual structural business statistics are available extract data. The most simple is to use what are as part of the industry, trade and services domain referred to as main tables (automatically up- of the Eurostat statistics database (available on dated), presenting selected, key indicators. Main the Eurostat website). The first heading of this tables are available for practically the full range branch concerns SBS – Main indicators, the first of subjects for which Eurostat has data, not just table (European business) presents the majority business statistics. of the important indicators used in the publica- tion across a full range of NACE divisions, while For structural business statistics there are a set of a second table presents summary indicators by main tables which provide an overview of busi- size class. ness structures in the countries and/or for the EU as a whole, as well as tables which provide se- Thereafter the tables are structured by activity, lected data for specific sectors: industry and con- again these include the main structural vari- struction, distributive trades, services and finan- ables (such as value added and employment), as cial services. Most tables contain data by country well as derived indicators (including apparent and years; these are only available with a limited labour productivity, average personnel costs and activity breakdown. They are complemented by wage adjusted labour productivity). However, the some tables which show a more detailed activity list of indicators is considerably longer than the breakdown only for the EU-27 aggregate. main indicators that are used within European business and the size class summary tables. In- Complete database deed, the data set covers all variables collected under the SBS Regulation, as well as a number Database access allows users to select informa- of derived indicators based on these. As the data tion from the whole data set, based on user de- are split according to activity, users who wish to fined data extractions. This option should be used obtain data across all NACE will need to make a by those who wish to make their own selection of number of extractions. Note that the data under statistics. The data that is returned when query- the heading annual enterprise statistics do not in- ing the database may be extracted in a variety of clude much information for financial intermedia- formats: tion (NACE Section J), as specific tables are pro- i. as an HTML page for an Internet browser; vided for credit institutions, insurance services, ii. as a tab delimited fi le for a spreadsheet and pension funds. application, or; The next heading in the SBS data tree contains the iii. as a flat text fi le for a database application. information that was used to construct the maps that are presented in the overview of each chap- ter, in other words, annual regional statistics. The link below takes the user into the Eurostat database at the point where the SBS data tree can be expanded, from where tailor-made extractions can be made, specifying all of the dimensions of the data request, including the countries, time periods, indicators, and units. To extract data: http://epp.eurostat.ec.europa. eu/portal/page/portal/european_business/data/ database. European business — Facts and figures 7
  • 13. Introduction Special topics for structural business The structure of the tables presented for construc- statistics tion follows very closely the structure used for industry, with separate tables for indices of pro- In addition to those tables which are documented duction, new orders, labour input, construction above, there is also more specific SBS information costs for new residential buildings, and building on a collection of particular topics, such as: permits (number of dwellings and area). • Business demography The structure of the tables for distributive trades • Business registers and other services is somewhat different, as the • Business services information is initially divided according to the • Demand for services activity under analysis, with separate tables for • Entrepreneurship indicators wholesale and retail trade, and for other services. • EuroGroups register • Factors of business success To extract data: http://epp.eurostat.ec.europa.eu/ • Foreign-controlled enterprises portal/page/portal/short_term_business_statistics/ • Globalisation data/database. • Inter-enterprise relations • International sourcing PRODCOM • Regional structural business statistics Information on product statistics (PRODCOM) • Small and medium-sized enterprises (SMEs) is also available as part of the industry, trade and To extract data: http://epp.eurostat.ec.europa. services domain, under a separate heading called eu/portal/page/portal/european_business/data/ Statistics by product. This set of data is quite par- database. ticular insofar as the links presented take the user to either a set of MS Excel spreadsheets or a data- Short-term business statistics base application (rather than the standard inter- face used for most Eurostat data). The application The information on short-term business statis- presents the user with the choice of extracting tics (STS) is also available as part of the industry, external trade or PRODCOM data (annual or trade and services domain on the Eurostat web- monthly). The interface permits the selection of site. The data are structured under three main the country, PRODCOM code (PRCCODE), vol- headings: industry; construction; and trade and ume or value data (measurement unit), period, other services. and indicator (production, imports or exports). Within the industry domain the data is broken The application also allows for exports and im- down according to the indicators specified in the ports to be extracted at the same time. In order to STS Regulation. There are tables presented for make user-defined queries of PRODCOM data: indices of production, import prices, turnover, http://epp.eurostat.ec.europa.eu/newxtweb/. In new orders, labour input (number of persons em- order to use/downloaded PRODCOM data in MS ployed; volume of work done/hours worked, gross Excel format: http://epp.eurostat.ec.europa.eu/ wages and salaries), and producer (output) prices. portal/page/portal/prodcom/data/tables_excel. A number of tables exist for each of these indices, with monthly, quarterly and annual frequencies often available, while there may be different pres- entations for certain indices (gross, working day adjusted, seasonally adjusted, or trend cycle). 8 European business — Facts and figures
  • 15. 1 Business economy overview At the time of writing, global, economic events spread to other activities – such as, motor vehi- were unfolding. Following the collapse of banks, cle manufacturing and airlines. Alternatively, at and intense pressure on banking systems, falling the time of writing, several Member States have stock market indices, and in many cases falling been permitted to introduce direct-aid schemes, housing prices, there was evidence an economic whereby up to EUR 500 thousand could be given downturn. This was apparent in terms of falling to businesses in financial difficulty. demand, waning business and consumer confi- dence, lower industrial output and reduced vol- umes of retail sales. 1.1: Macro-economic outlook In this economic environment, the renewed Lis- Gross domestic product (GDP) bon strategy (as reiterated in 2005), which seeks to foster economic dynamism and help create The most common indicator for measuring a na- more and better jobs, faces greater challenges. tion’s economic activity is gross domestic prod- The strategy undertakes to ensure that business- uct (GDP). This indicator covers the production es can compete openly and fairly, while making activity of resident producers, calculated as the Europe an attractive place to invest and work in. sum of gross value added from all activities/in- Enterprise policy within the EU aims to create an dustries within an economy. environment that encourages entrepreneurs and It is important to consider the cyclical changes businesses to flourish. There are a wide range of in GDP over the past decade when reading the initiatives intended to increase competitiveness sectoral chapters that follow, as the evolution of or nurture European businesses, in particular, output or sales in many activities follows closely small and medium-sized enterprises (SMEs). the economic cycle of the whole economy. GDP Current enterprise policy (more details at: http:// growth in the EU-27 rose at a relatively fast pace ec.europa.eu/enterprise/index_en.htm), aims to: during the late 1990s, with annual rates of growth • promote entrepreneurship, competitiveness, peaking in 2000 at 3.9 %, after which there was a productivity growth, innovation, access to slowdown in the pace at which economic activ- funding, and support networks; ity expanded, in particular for 2002 and 2003. • implement a flexible and simplified regulatory The EU-27’s GDP growth thereafter accelerated and administrative framework; with rapid expansions in 2006 (3.1 %) and 2007 • open-up markets; (2.9 %). At the time of writing, latest forecasts • encourage businesses to adapt to structural for 2008 show a considerable slowdown in activ- change; ity, with the rate of GDP growth almost halving • ensure coordination and balance between between 2007 and 2008, while forecasts for 2009 industrial, energy and environmental from a range of international organisations point policies. to global growth rates close to zero. In order to sustain its ambitions, many com- Figure 1.1 shows the evolution of constant price mentators argue that Europe needs to accelerate GDP (at fi xed 2000 exchange rates) between 1998 reform, becoming more entrepreneurial, making and 2008 in the Triad economies of the EU-27, Ja- business easier to carry out, while at the same time pan and the United States (forecasts are included promoting sustainability through protection of for 2008). GDP rose on average by 2.3 % per an- the environment and social values. Others would num in the EU-27 during the period concerned, argue that in periods of economic recession, it is which was below the rate recorded for the United understandable that governments encourage the States (2.8 % per annum), but higher than that for consumption of home-produced goods. Indeed, Japan (1.6 % per annum). recent political debate has centred on evidence of The level of GDP, per se, says little about the eco- a more protectionist stance: for example, moves nomic performance of a country. In order to nor- to protect activities that are considered to be of malise GDP, one of the most common approaches particular national importance, threats to the is to use GDP per capita (obtained by dividing GDP free movement of workers, or non-compliance by the number of inhabitants in a country/region). with Stability and Growth Pact rules. Support for This indicator is often used as a measure of living failing sectors of the economy has been most no- standards. For international comparisons, GDP table within the banking sector, but subsequently per capita should ideally be calculated in terms of 10 European business — Facts and figures
  • 16. Business economy overview 1 Figure 1.1: Business economy overview GDP at market prices in constant prices (EUR billion, chain-linked volumes, at 2000 exchange rates) 15 000 10 000 5 000 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 (1) US EU-27 JP (1) Forecasts. Source: Eurostat (Economy and finance) purchasing power standards (PPS) (1). Figure 1.2 accounted for 28.1 % of the EU-27 total in 2007. shows that Luxembourg had by far the highest lev- Distribution, hotels, restaurants and catering el of GDP per capita in PPS terms in 2007, at just (HORECA), communications and transport serv- over three times the EU-27 average, well above the ices (NACE Sections G to I) and industry (NACE next highest figures that were recorded for Ireland Sections C to E) both accounted for slightly more and Denmark (where GDP per capita was 76 % than a fift h of the EU-27’s economic output. Con- and 67 % above the EU-27 average). At the other struction (NACE Section F) registered a 6.5 % end of the range, the 12 Member States that joined share, while among those activities not covered the EU in 2004 or 2007, as well as Spain, Greece within this publication, the lion’s share of the re- and Portugal, all reported GDP per capita below maining added value (22.4 % of the EU-27 total) the EU-27 average. The lowest standard of living was generated by public administration, health, (using this measure) was recorded in Romania and education, other services and households (NACE in Bulgaria, where this ratio was less than a quar- Sections L to P); the outstanding 1.8 % of value ter of the EU-27 average. added was attributed to agriculture, hunting, for- estry and fishing (NACE Sections A and B). Structure of the EU economy – an The structure of economic output within the overview EU-27 has generally shifted away from traditional According to national accounts, the group of economic sectors such as agriculture or industry, activities covered by this publication – hereafter towards services. This trend may, at least in part, referred to as the business economy (NACE Sec- be attributed to the outsourcing phenomenon, as tions C to K) – accounted for 75.8 % of the to- supporting and ancillary operations which were tal value added generated in the EU-27 in 2007 previously done in-house are awarded to outside (see Figure 1.3). This marked an increase of 0.9 contractors (for example, transport services or lo- percentage points when compared with the cor- gistics, information technology, accounting and responding share of a decade before. payroll services, or industrial cleaning). Inter- national outsourcing implies that an enterprise The largest sector (in terms of value added gener- contracts out work to external suppliers from ated) was financial, real estate, renting and busi- another country, whereas off-shoring is when ness activities (NACE Sections J and K), which an enterprise maintains control/ownership of a (1) A purchasing power parity is a currency conversion rate that allows indicators expressed in national currency to be converted to an artificial common currency while adjusting for different price levels between countries; this artificial common currency is called the purchasing power standard (note that EU-27 values are unchanged in euro and PPS terms). European business — Facts and figures 11
  • 17. 1 Business economy overview Figure 1.2: Business economy overview Figure 1.3: Business economy overview GDP per capita at market prices, 2007 Breakdown of value added in current prices, EU-27 (EU-27=100, based on PPS) (% of total value added) 0 50 100 150 200 250 300 350 1997 EU-27 Agriculture, LU hunting, IE Public admin.; forestry & DK health; fishing SE education; 2.8% NL other services; households Industry FI 22.3% 23.3% UK AT BE FR DE Construction IT 5.6% ES Financial, real estate, Distribution; EL renting & HORECA; CY business transp. & SI activities comm. PT 24.8% 21.3% MT CZ 2007 EE SK Agriculture, HU hunting, forestry & LV Public admin.; fishing health; education; 1.8% LT other services; PL Industry households RO (1) 20.1% 22.4% BG NO IS Construction CH 6.5% US JP HR TR (1) Financial, real Distribution; MK (1) estate, renting & HORECA; transp. & business activities comm. (1) Forecasts. 21.1% 28.1% Source: Eurostat (Economy and finance) Source: Eurostat (Economy and finance) production/service facility that moves abroad. chances of market entry in an untapped region. These phenomena are examples of how structural However, the process is not restricted to indus- changes may take place in the European business trial activities, as several services have followed economy, as enterprises relocate in the face of a similar pattern, for example, call centres, fi- relatively high wages and increased global trade nancial and computer services, or research and that have driven out (in particular) price sensitive development activities. These changes in the way segments of the EU-27 economy to lower labour that enterprises do business may, at least in part, cost regions. As such, some industrial enterprises explain why the share of industry in EU-27 to- have sought to invest in production facilities in tal value added declined by 3.2 percentage points emerging economies to benefit from relatively between 1997 and 2007, while the largest relative low unit labour costs and/or to improve their gains were concentrated among financial, real 12 European business — Facts and figures
  • 18. Business economy overview 1 estate, renting and business activities, where a 3.3 Figure 1.4: Business economy overview percentage point increase was registered. Breakdown of employment, EU-27 (% of total employment) Just under two thirds (65.3 %) of the EU-27’s work- 1997 force were employed within the business econo- my in 2007 (see Figure 1.4); this was more than Agriculture, 10 percentage points lower than the correspond- Public admin.; hunting, forestry & fishing ing share of the business economy in total value health; education; other 8.0% added. The difference could be largely attributed to the relatively low share of persons employed services; households in financial, real estate, renting and business ac- 27.8% Industry tivities (15.1 % of the total workforce, compared 21.1% with a 28.1 % share of total value added). In con- trast, agriculture, hunting, forestry and fishing; construction; distribution, HORECA, communi- cations and transport services; as well as public Construction administration, health, education, other services Financial, real 6.9% and households were all relatively labour-inten- estate, renting & sive. Indeed, the largest employer in the EU-27 in business 2007 (on the basis of national accounts data) was activities Distribution; 11.7% HORECA; transp. public administration, health, education, other & comm. services and households, accounting for almost 24.5% three out of every ten persons (28.9 %). Just over a quarter (25.3 %) of the EU-27’s workforce was 2007 employed in distribution, HORECA, communi- Agriculture, cations or transport services. Public admin.; hunting, forestry & health; education; fishing Structural differences between the other services; 5.8% Member States households 28.9% Industry Figure 1.5 shows the relative contribution of the 17.6% six national accounts activity aggregates to total value added in 2007. The structural differences observed between the Member States should be Construction borne in mind when reading the sectoral chap- 7.4% ters of this publication. In particular, it is impor- tant to consider the relative weight of those sec- tors that are not included in the main body of the Financial, real publication, as agriculture, hunting, forestry and estate, renting & Distribution; business activities HORECA; transp. & fishing, and more particularly, public adminis- 15.1% comm. tration, health, education, other services and 25.3% households can often account for a relatively high share of economic activity. However, the relative Source: Eurostat (Economy and finance) weight of these two activities does not have a di- rect impact on the calculation of shares and ratios that are presented throughout the publication as the non-financial business economy is often used 30.6 % in Malta, falling to almost half this level as the denominator when creating indicators for in Luxembourg (16.6 %). The relative importance analysis. of agriculture, hunting, forestry and fishing was particularly high in Romania and Bulgaria (7.5 % On average, agriculture, hunting, forestry and and 6.2 %), while upwards of 25 % of total value fishing and public administration, health, edu- added was generated by public administration, cation, other services and households accounted health, education, other services and house- for 24.2 % of total value added in the EU-27 in holds in Malta, Denmark, Portugal, Sweden and 2007. Their share of total value added peaked at France. European business — Facts and figures 13
  • 19. 1 Business economy overview Figure 1.5: Business economy overview Among the activities covered by the sectoral Breakdown of gross value added at basic prices, 2007 chapters of this publication, Luxembourg, France (% share of total gross value added) and the United Kingdom were all relatively spe- cialised in financial, real estate, renting and busi- 0% 25% 50% 75% 100% ness activities, as these activities accounted for EU-27 upwards of 30 % of their total value added (ris- BE ing to 47.3 % in Luxembourg). Industrial activi- BG ties were particularly concentrated within cen- CZ tral Europe, with the highest shares of industry DK in total value added being recorded in the Czech DE Republic, Slovakia, Germany, Romania and Slov- EE enia. In contrast, the tourism-rich economies of IE Greece, Cyprus and Malta were joined by the Bal- EL tic States and Poland, where distribution activi- ES ties accounted for a relatively high share of value FR added, as the Member States that displayed the IT highest degree of specialisation in distribution, CY HORECA, communications and transport serv- ices. The most specialised Member States within LV the construction sector were Spain (12.3 % of to- LT tal value added), Romania (10.3 %) and Lithuania LU (10.2 %). HU MT Figure 1.6 shows a similar breakdown for em- NL ployment: the main difference is the striking AT number of persons employed within agriculture, PL hunting, forestry and fishing activities in Roma- PT nia (2006), Bulgaria and Poland (2006), a share RO that rose to 30.6 % in Romania. The relative im- SI portance of public administration, health, edu- SK cation, other services and households was also FI generally higher in relation to employment when SE compared with value added. Indeed, as many as UK 39.0 % of the Swedish workforce were occupied in HR these activities in 2007, and upwards of one third MK (1) of the total in France (2006), Denmark, Belgium TR and Finland. IS (1) NO Future challenges; information CH technology and climatic change In its mid-term review of industrial policy Agriculture, hunting, forestry & fishing Industry (COM(2007) 374), the European Commission Construction identified some key challenges facing European Distribution; HORECA; transp. & comm. Financial, real estate, renting & business activities business, in particular, the intensified impact of Public admin.; health; education etc. globalisation and technological change, the chal- (1) 2006. lenges posed by climate change, and the possibili- Source: Eurostat (Economy and finance) ties for exploring opportunities relating to new low-energy and resource-saving processes and products. 14 European business — Facts and figures
  • 20. Business economy overview 1 One basic indicator to measure the take-up of in- Figure 1.6: Business economy overview formation technology is the Internet penetration Breakdown of employment, 2007 rate. The proportion of EU-27 enterprises having (% share of total employment) access to the Internet in 2008 was 93 % (2), while 0% 25% 50% 75% 100% 81 % of all enterprises had a broadband connec- tion (see Figure 1.8). This latter share ranged from EU-27 92 % in France, Spain and Finland, to less than BE two thirds of all enterprises in Bulgaria, Latvia, BG Poland, Lithuania and Romania (where the low- CZ est share of 44 % was registered). DK Aside from its potential for making business DE more productive and efficient, the Internet also EE offers a range of opportunities for e-commerce, both with other businesses (B2B), as well as final IE consumers (B2C). A relatively small proportion EL of enterprises (16 %) in the EU-27 received orders ES on-line in 2008, with this latest figure represent- FR (1) ing a gain of four percentage points in relation to IT 2005 (see Figure 1.9). The likelihood that an en- CY terprise received orders on-line rose as a function of its average size, from 15 % for small enterprises LV to 33 % for large enterprises. LT LU Some 28 % of enterprises in the EU-27 in 2008 made on-line purchases, which was also four per- HU centage points higher than in 2005. As with sales MT (2) through the Internet, the highest proportion of NL enterprises making purchases over the Internet AT was recorded among large enterprises (42 %). PL (1) Note, however, that the pace at which Internet PT sales and purchases grew between 2005 and 2008 was fastest among small enterprises. RO (1) SI The EU has set ambitious environmental goals to SK increase energy efficiency, to reduce greenhouse gas emissions (by at least 20 % by 2020), to pro- FI mote renewable energy sources, and to invest in SE a range of environmental industries. Figure 1.10 UK shows that there have been sizeable reductions in NO national emissions across the EU-27, on the ba- CH (1) sis of a comparison with 1990 – in particular for ozone precursors, particulate matter and acidi- Agriculture, hunting, forestry & fishing fying pollutants. Figure 1.11 presents more de- Industry Construction tail in relation to the main sources of emissions, Distribution; HORECA; transp. & comm. with fuel consumption for transport and within Financial, real estate, renting & business activities energy-producing industries generally account- Public admin.; health; education etc. able for the highest levels. Energy-producing in- (1) 2006. (2) Not available. dustries and transport accounted for almost one Source: Eurostat (Economy and finance) third and one fift h (31 % and 19 %) of all green- house gas emissions in 2006. Between 1990 and 2006 there was a general trend for EU-27 emis- sions from energy-producing industries and from industrial and construction activities to fall (as a share of total emissions), while the share of emis- sions from transport tended to rise. (2) Information covers enterprises with 10 or more persons employed in NACE Sections D, F, G, I and K, as well as Groups 55.1, 55.2, 92.1 and 92.2. European business — Facts and figures 15
  • 21. 1 Business economy overview Figure 1.7: Business economy overview Use of computers and the Internet by enterprises, EU-27 (%) (1) 100 75 50 25 0 Using computers Having access Broadband access Using a LAN Using a Using the Internet for to the Internet wireless LAN banking and financial services 2005 2008 (1) Information covers enterprises with 10 or more persons employed in NACE Rev. 1.1 Sections D, F, G, I and K, as well as Groups 55.1, 55.2, 92.1 and 92.2. Source: Eurostat (Information society statistics) Figure 1.8: Business economy overview Proportion of enterprises having access to the Internet, 2008 (%) (1) 100 75 50 25 0 EU- FI NL DK BE SI AT SE EE LU IE SK ES FR DE CZ IT LT UK EL PL MT PT CY LV HU BG RO IS NO HR 27 (2) (2) Total Broadband connection (1) Ranked on total proportion of enterprises with a connection; information covers enterprises with 10 or more persons employed in NACE Rev. 1.1 Sections D, F, G, I and K, as well as Groups 55.1, 55.2, 92.1 and 92.2. (2) 2007. Source: Eurostat (Information society statistics) 16 European business — Facts and figures
  • 22. Business economy overview 1 Figure 1.9: Business economy overview Proportion of enterprises purchasing and selling on-line, EU-27 (%) (1) 50 40 30 20 10 0 Total Small Medium- Large Total Small Medium- Large sized sized Having purchased on-line Having received orders on-line 2005 2008 (1) Purchases or orders received of at least 1 % during the previous calendar year; information covers enterprises with 10 or more persons employed in NACE Rev. 1.1 Sections D, F, G, I and K, as well as Groups 55.1, 55.2, 92.1 and 92.2. Source: Eurostat (Information society statistics) Figure 1.10: Business economy overview Development of total national emissions of selected air pollutants, EU-27 (1990=100) 100 75 50 25 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Greenhouse gases Tropospheric ozone precursors Primary PM10 and (weighted) PM10 precursors (1) Acidifying pollutants (1) PM10 is particulate matter with an aerodynamic diameter less than or equal to 10 microns. Source: Eurostat (Air pollution/climate change ) European business — Facts and figures 17
  • 23. 1 Business economy overview Figure 1.11: Business economy overview Air emissions: share of selected sources in total emissions, EU-27 (%) 100 75 50 25 0 1990 2006 1990 2006 1990 2006 1990 2006 Greenhouse gases Tropospheric ozone Primary PM10 and Acidifying pollutants precursors (weighted) PM10 precursors (1) Industrial processes Industrial and construction activities - fuel consumption Transport - fuel consumption Energy industries - fuel consumption (1) PM10 is particulate matter with an aerodynamic diameter less than or equal to 10 microns. Source: Eurostat (Air pollution/climate change ) 1.2: Structural profile of the The legislation in respect to structural business statistics was modified in 2002 by a Decision (No business economy 2367/2002/EC) of the European Parliament and Regulation ((EC) No 58/1997) established a com- the Council in order to ensure that the collection of mon framework for the collection, compilation, statistics was guided by the principal Community transmission and evaluation of Community sta- policy priorities of economic and monetary union, tistics on the structure, activity, competitiveness enlargement and competitiveness, regional policy, and performance of businesses in the Communi- sustainable development and the social agenda. ty. These structural business statistics (SBS) con- A recast structural business statistics Regulation stitute the principal source of information used ((EC) No 295/2008) came into force in February in this publication. The main SBS aggregates, of- 2008 and provides ten modules for the produc- ten referred to during the course of this publica- tion of business statistics. The regulation foresees tion, include: that the first reference year for which statistics • the non-financial business economy (NACE will generally be compiled is calendar year 2008; Rev. 1.1 Sections C to I and K); in addition the statistics should be collected ac- • industry (NACE Sections Rev. 1.1 C to E); cording to the revised classification of economic • construction (NACE Rev. 1.1 Section F), and; activities (NACE Rev. 2). This recast Regulation • non-financial services (NACE Rev. 1.1 should provide for the continuation of existing Sections G to I and K). statistical support in current policy areas and satisfy additional requirements arising from new Note that financial services (NACE Rev. 1.1 Sec- Community policy initiatives, as well as reviews tion J) are kept separate (see Chapter 26) because of statistical priorities. The Member States will of their specific nature and the limited availability generally have 18 months to deliver these statis- of most standard business statistics in this area. tics to Eurostat and hence the data for 2008 is ex- pected to be available by the summer of 2010. As such, this publication continues to present data using the NACE Rev. 1.1 classification of eco- nomic activities. 18 European business — Facts and figures
  • 24. Business economy overview 1 Table 1.1: Business economy overview Main indicators for the non-financial business economy, EU-27, 2006 (1) Turnover Value added Persons employed (% of non- (% of non- (% of non- financial financial financial (EUR business (EUR business business Chapter billion) economy) billion) economy) (thousands) economy) 1 Non-financial business economy 22 311 100.0 5 650 100.0 129 773 100.0 Industry 7 984 35.8 2 004 35.5 36 744 28.3 2 Mining & quarrying 235 1.1 89 1.6 733 0.6 3 Food, beverages & tobacco 942 4.2 197 3.5 4 700 3.6 4 Textiles, clothing, leather & footwear 235 1.1 65 1.1 2 998 2.3 5 Wood & paper 300 1.3 78 1.4 1 984 1.5 6 Fuel processing & chemicals (2) 1 099 5.3 217 4.0 2 068 1.6 7 Rubber & plastics 275 1.2 78 1.4 1 750 1.3 8 Other non-metallic mineral products 242 1.1 80 1.4 1 587 1.2 9 Metals & metal products 864 3.9 244 4.3 5 081 3.9 10 Machinery & equipment 621 2.8 193 3.4 3 650 2.8 11 Electrical machinery & optical equipment 710 3.2 203 3.6 3 668 2.8 12 Transport equipment 945 4.2 195 3.5 3 152 2.4 13 Furniture & other manufacturing 175 0.8 53 0.9 1 800 1.4 14 Network supply of electricity, gas & steam 885 4.0 180 3.2 1 227 0.9 15 Recycling & water supply 91 0.4 31 0.6 521 0.4 16 Construction 1 553 7.0 510 9.0 14 093 10.9 Non-financial services 12 774 57.3 3 136 55.5 78 936 60.8 17 Motor trades 1 327 5.9 162 2.9 4 242 3.3 18 Wholesale trade 4 603 20.6 519 9.2 9 962 7.7 19 Retail trade & repair 2 272 10.2 418 7.4 17 472 13.5 20 Accommodation & food services 434 1.9 182 3.2 9 266 7.1 21 Transport and storage 1 209 5.4 400 7.1 8 847 6.8 22 Media & communications 792 3.6 350 6.2 4 857 3.7 23 Real estate, renting & leasing (3) 650 3.1 340 6.0 3 290 2.6 24 Research & development (2) 43 0.2 22 0.4 400 0.3 25 Business services 1 763 7.9 892 15.8 22 202 17.1 (1) Includes rounded estimates of non-confidential data. (2) Turnover and value added, 2005. (3) Turnover and number of persons employed, 2005. Source: Eurostat (SBS) Structural profile of the EU-27’s non- Business services, retail trade and repair, and financial business economy the construction sector together accounted for almost 55 % of all enterprises active within the There were just over 20 million active enterprises EU-27’s non-financial business economy in 2006; within the EU-27’s non-financial business econ- almost 4.4 million enterprises were active within omy in 2006 (see Table 1.2). The vast majority of business services, and nearly 3.8 million within these (73.9 %) were operating within non-financial the retail trade and repair sector. services, while a higher proportion of enterprises were active in the construction sector (14.4 % of At the other end of the scale, there were often rela- the total) than within industry (11.7 %). tively few enterprises operating within activities characterised by high barriers to entry (such as, On the basis of the activity aggregates used for the those with considerable start-up costs to reach a sectoral chapters that follow in the remainder of minimum efficient scale of production). These in- this publication, the highest number of enterpris- cluded capital-intensive activities such as mining es were often found in activities that are, to some and quarrying, transport equipment manufactur- degree, characterised as having relatively low ing, the network supply of electricity, gas and steam barriers to entry, and large, proximity markets. or recycling and water supply; none of these sectors European business — Facts and figures 19
  • 25. 1 Business economy overview Figure 1.12: Business economy overview sectors together contributed 34.0 % of the value Number of enterprises, EU-27, 2006 (thousands) (1) added generated in the EU-27’s non-financial 0 1 000 2 000 3 000 4 000 5 000 business economy; they were business services, wholesale trade and construction. Business services Comparing two output measures, namely value Retail trade & repair added and turnover, the most noticeable differ- Construction ence concerned distributive trade activities (es- Wholesale trade pecially wholesale trade), where these activities Accommodation & food services reported a far higher share of sales. The relatively Real estate, renting & leasing high proportion of turnover occurring within Transport and storage these activities is a direct consequence of the na- Motor trades ture of these activities, whereby large volumes Metals & metal products of products are purchased and resold, normally Food, beverages & tobacco with a relatively small margin. For example, Media & communications wholesale trade activities accounted for 20.6 % of Textiles, clothing, leather & footwear EU-27 sales in the non-financial business econo- my in 2006, compared with a 9.2 % share of value Furniture & other manufacturing added. In contrast, the added value of business Wood & paper services (15.8 % of the non-financial business Electrical machinery & optical equip. economy total) was considerable higher than its Machinery & equipment share of turnover (7.9 %). Other non-metallic mineral prod. Rubber & plastics In employment terms, the importance of the rel- atively labour-intensive construction and non-fi- Transport equipment nancial services sectors was relatively high (when Research & development compared with value added). Non-financial serv- Fuel processing & chemicals ices accounted for 60.8 % of the EU-27’s non- Recycling & water supply financial business economy workforce, 28.3 % Network supply of elec., gas & steam were employed in industrial activities and the Mining & quarrying remaining 10.9 % in the construction sector. At (1) Includes some rounded estimates based on non-confidential data. a sectoral level, none of the industrial activities Source: Eurostat (SBS) represented more than 4 % of the employment total; the highest share being recorded for met- als and metal products. Among the services, the accounted for more than 0.2 % of the total number largest workforces were found within the activi- of enterprises active in the EU-27’s non-financial ties of business services (17.1 %) and retail trade business economy, with fewer than 25 thousand en- and repair (13.5 %). terprises operating in mining and quarrying activi- Differences between the relative shares of total ties, the network supply of electricity, gas and steam value added and employment throw some light or the recycling and water supply sector. on productivity differentials between activities The distribution of enterprises across the EU-27 (see Figure 1.13). Apparent labour productivity economy provides little information when analys- (defined as value added divided by the number ing the relative economic importance of the dif- of persons employed) tended to be highest among ferent sectors. Economic weight is more generally those sectors characterised as being capital-inten- measured in terms of value added. Non-financial sive or high-tech. The most productive activities services contributed a 55.5 % share of the total in the EU-27 (at the sectoral level used for chapters added value in the EU-27’s non-financial business in this publication) included real estate, renting economy in 2006. The proportion accounted for and leasing (2005), media and communications, by industrial activities (35.5 %) was 23.8 percent- fuel processing and chemicals manufacturing age points higher than the corresponding share of (2005) and the network supply of electricity, gas industry in the total number of enterprises. The and steam. In contrast, the least productive areas construction sector accounted for the remaining of the EU-27’s non-financial business economy in 9.0 % of added value in the EU-27’s non-financial 2006 included labour-intensive activities, such as business economy in 2006. Looking in more de- the manufacture of textiles, clothing, leather and tail (using the aggregates defining each sectoral footwear, the construction sector, accommoda- chapter in this publication), the three largest tion and food services, or retail trade and repair. 20 European business — Facts and figures