Definition: Death (of business)

Category: Business registers

ENTERPRISE - A death amounts to the dissolution of a combination of production factors with the restriction that no other enterprises are involved in the event. Deaths do not include exits from the population due to mergers, take-overs, break-ups or restructuring of a set of enterprises. It does not include exits from a sub-population resulting only from a change of activity.

An enterprise is included in the count of deaths only if it is not reactivated within two years. Equally, a reactivation within two years is not counted as a birth.

Sources: SBS Regulation No 58/97; Eurostat – OECD Manual on Business Demography Statistics (edition 2007)

LOCAL UNIT - The death of a local unit is the disappearance of a local unit, which existed before. Since the local unit is a part of an enterprise, situated in a geographically identified place, and the enterprise is a combination of production factors, the death of a local unit amounts to the dissolution of a (partial) combination of production factors at a geographically identified place.

ENTERPRISE GROUP - The death of an enterprise group is the cessation of all control links, direct or indirect, between the legal units of which the enterprise group consists. The legal units become independent again or cease to exist. No other enterprise group is involved.

Source: Business Register Recommendations Manual http://ec.europa.eu/eurostat/ramon/statmanuals/files/KS-32-10-216-EN-C-EN.pdf Council Regulation No. 58/97 concerning structural business statisticsEurostat and OECD,  "Eurostat - OECD Manual on Business Demography Statistics" (Edition 2007)