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Thursday, 28.03.2024, 22:55
Number of economic units rose in Estonia in 2017
Two thirds of economically active units were companies (66%), sole
proprietors accounted for 15%. Non-profit associations constituted 17% of all
economically active units. Similarly to previous years, state and local government
institutions accounted for less than 2%.
In total, there
were 127,622 economically active enterprises (companies and sole proprietors),
with companies numbering 103,500. In 2017, the number of companies increased by
approximately 8,000, i.e. around 3,000 more units were added compared to 2016.
As usual, the number of private limited companies grew – over 8,000 were added.
The number of public limited companies declined again by more than 100 units.
The number of active sole proprietors continues to decrease. In 2017, there
were around 1,000 sole proprietors less – their number fell to 24,000.
The number of non-profit institutions declined by
approximately 4,000 units, totalling slightly over 30,000 in 2017. The decrease
resulted from decline in the number of non-profit associations, and the main
reason for the latter was a change in the methodology for determining activitya.
The number of
government and local government institutions stayed almost the same. The
administrative reform at the end of 2017 did not have a major impact on the
population of economic units that were active during the year, because it also
includes units that were active for only a part of the year. The impact will
become obvious in the 2018 data, which will not include local government
institutions that ceased activity in connection with the reform.
As in previous
years, more than a half (56%) of enterprises (71,000) are located in Harju
county, most of them (78% of all Harju county enterprises) in Tallinn. Year on
year, over 5,000 enterprises were added in Harju county, 4,000 of these in
Tallinn. In 2017, the number of active enterprises increased in all counties.
The most enterprises were added in Tartu (440) and Pärnu (220) counties. There
were slightly over 13,500 economically active enterprises in Tartu county,
followed by Pärnu county with around 7,500 and Ida-Viru and Lääne-Viru counties
with 6,500 and 4,500 enterprises, respectively. Less than 100 enterprises were
added in Jõgeva, Järva, Valga, Põlva and Võru counties. The growth in the
number of enterprises was smallest in Hiiu county (5 enterprises).
The number of
micro-enterprises increased the most, with approximately 7,000 added in a year
– over twice as many as in 2016 when 3,000 were added. Micro enterprises are
enterprises without salaried employees or with less than 10 employed persons,
and they constitute 94% of all active enterprises in Estonia. In 2017, there were
approximately 120,000 micro enterprises. The highest number was added in Harju
county. The number of large enterprises (with at least 250 employed persons)
was 200 in 2017 (same as the previous year), with over a half operating in
Tallinn. Similarly to 2016, around 70% of large enterprises were located in
Harju county, followed by Tartu (8%) and Ida-Viru (5%) counties. There were
approximately 100 small enterprises (with 10–49 employed persons) added, while
the number of medium-sized enterprises (50–249 employed persons) decreased by
34.
New enterprises were added in every economic activity, excl. agriculture where their number continues to decline. The number of active enterprises increased the most (27%) in financial and insurance activities – over 400 enterprises were added. The biggest increase occurred in the number of enterprises engaged in professional, scientific and technical activities (over 1,000 were added, i.e. twice as many as the previous year). The economic activities of construction, information and communication, and wholesale and retail trade grew by slightly under a thousand enterprises. The number of enterprises in accommodation and food service activities increased 6.5%; over 200 active enterprises were added compared to 2016.
In order to
examine the level of globalization of business in Estonia and the role of
enterprise groups in the economy, especially of multinational groups,
Statistics Estonia has been regularly collecting data on enterprise groups
operating in Estonia since 2005.
In 2017, enterprise groups continued to play an
important role in the Estonian economy. 9% of all economically active units
(12,453 enterprises) were part of enterprise groups. In 2017, enterprise groups
accounted for approximately 63% of the turnoverb of Estonian enterprises and employed over a third of all persons
employed.
The number of
enterprise groups increases every year, and 6,988 enterprise groups operated in
Estonia in 2017. As compared to domestically controlled enterprise groups,
foreign enterprise groups are added at a slower rate, their share has
continuously decreased. Whereas in 2004 foreign enterprise groups constituted
about a half of all enterprise groups, their share had diminished to 32% in
2017.
In 2017,
enterprises belonging to Estonian enterprise groups accounted for 7% and
members of foreign enterprise groups for 2% of all economically active
enterprises. The contribution of enterprise groups to employment in Estonia has
been significant over the years – enterprise groups employed 36% of all
employed persons in 2017. Employment in enterprise groups increased 3% in 2017
year on year – both in domestically and foreign-controlled groups.
In 2017, foreign
enterprise groups employed 16% of all persons employed in Estonia and generated
30% of the net turnover of enterprises. Enterprise groups of 64 countries had
subsidiaries in Estonia. 86% of the foreign enterprise groups were controlled
by a European group head. Of the 28 Member States of the European Union, only
Portugal and Croatia did not have any active subsidiaries in Estonia in 2017.
The enterprise groups of Finland, Sweden, Latvia, Lithuania and the United
Kingdom had the greatest impact on the Estonian economy.
As usual, the
impact of foreign enterprise groups on employment was greatest in financial
intermediation, where 60% of the persons employed in the economic activity
worked in units of foreign enterprise groups. In 2017, foreign enterprise
groups employed every third person employed in manufacturing, information and
communication, and administrative and support service activities.
Estonian
enterprises have set up subsidiaries in 65 countries, mainly in Europe but also
in Asia, North and South America, Australia and Africa. Still, Estonian
multinational groups were primarily interested in doing business in the closest
countries (Latvia, Lithuania, Finland and Russia) where the business conditions
are most familiar.
Economic units
registered in legal registers are not all economically active. Economic
statistics are produced based on the data of economically active units. In this
article, the population of economically active units was analysed – its volume,
geographical distribution and distribution by economic activities.
Statistics Estonia
maintains the Business Register for Statistical Purposes since 1994. The
population of economically active units in the register serves as a basis for
producing economic statistics. For updating the Business Register for
Statistical Purposes, data from the following registers are used: the
commercial register, the non-profit associations and foundations register, the
register of taxable persons and the state register of state and local
government institutions. In addition to legal registers, other data sources are
used, such as statistical and financial reports. The Business Register for
Statistical Purposes includes all registered units, but unlike legal registers,
the Business Register for Statistical Purposes determines at the end of each
year the population of economically active units in the corresponding year.
This includes all units that were economically active in the reference year,
including the ones that were active only during a part of the reference period.
Turnover does not
include the data of financial intermediation enterprises, because their income
statement differs from that of other enterprises.
aNon-profit associations are considered economically active if it is not
known that activity was suspended or ceased. These non-profit associations have
submitted data to Statistics Estonia (for statistical activities), the Tax and
Customs Board (tax and/or customs declarations), the commercial register
(recorded turnover in 2016 annual reports) or are apartment associations. In
the previous years, all non-profit associations were considered active if there
was no information regarding suspension or cessation of activity.
bTurnover does not include the data of financial
intermediation enterprises, because their income statement differs from that of
other enterprises.