Definition: Birth (of business)

Business registers

ENTERPRISE - A birth amounts to the creation of a combination of production factors with the restriction that no other enterprises are involved in the event. Births do not include entries into the population due to mergers, break-ups, split-off or restructuring of a set of enterprises. It does not include entries into a sub-population resulting only from a change of activity.

A birth occurs when and enterprise starts from scratch and actually starts activity. An enterprise creation can be considered as an enterprise birth if new production factors, in particular new jobs, are created. If a dormant unit is reactivated within two years, this event is not considered a birth.

LOCAL UNIT - The birth of a local unit is the emergence of a local unit, which did not exist 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 birth of a local unit amounts to the creation of a (partial) combination of production factors at a geographically identified place.

ENTERPRISE GROUP - The birth of an enterprise group is the establishing of a link of control, direct or indirect, between two or more independent legal units, where no link of control existed before and no other enterprise group is involved.
Source:
Eurostat, "Business registers. Recommendations manual", Methodologies and Working Papers, Publications Office of the European Union, Luxembourg, 2010
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