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Technical Note: Increase the number of businesses

Increase the number of businesses

DESCRIPTION:

The indicator measures the total number of VAT/PAYE registered private sector enterprises operating in Scotland per 10,000 adults. The figure includes all private sector registered enterprises that operate in Scotland regardless of where the business is based.

SOURCE:

This indicator uses the registered enterprise count, as published in the Businesses in Scotland.

The Inter-Departmental Business Register (IDBR) provides the number of enterprises registered for Value Added Tax (VAT) and/or Pay As You Earn (PAYE) in Scotland.  An IDBR extract from March each year is taken to derive the count of registered enterprises operating in Scotland.   

Further information on the methodology of the source can be found at the link below:

Businesses in Scotland Methodology

The population estimates used to form the rates are sourced from the Mid-Year Population Estimates, published by the National Records of Scotland. 

DEFINITIONS:

An enterprise is the term used to refer to a company or business. A large supermarket chain is considered to be one 'enterprise'. Each individual store that forms part of this supermarket chain is known as a 'business site'.

Private sector enterprises are companies, sole traders, partnerships, public corporations/nationalised bodies and not for profit organisations. This is distinct from central and local government.

An enterprise is considered to be operating in Scotland if it has a business site in Scotland regardless of where the enterprise is based or registered.

Per 10,000 adults is defined as people aged 16 or over resident in Scotland.

BASELINE AND PAST TRENDS:

The baseline year for this indicator is 2006 at which point there were 351 private sector enterprises per 10,000 adults in Scotland.

Year

Per 10,000 resident adults

2006

351

2007

356

2008

363

2009

360

2010

357

2011

352

2012

363

2013

362

2014

375

2015

382

2016

388

2017*

393

*2017 business stock is calculated based upon the 2016 resident adult population.

CRITERIA FOR RECENT CHANGE ARROW:

The evaluation is based on: any difference within +/- 4 businesses per 10,000 adults suggests that the position is more likely to be maintaining than showing any change. An increase of 4 businesses per 10,000 adults or more suggests the position is improving; whereas a decrease of 4 businesses per 10,000 adults or more suggests the position is worsening.  The 4 businesses per 10,000 adults is effectively a difference of 1%.

For information on general methodological approach, please click here.

FUTURE ISSUES OR REVIEWS:

No issues.

ASSOCIATED TARGET:

No associated targets.