General economic statistics
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1 1. The Danish business structure Changed business structure The Danish business structure has experienced enormous changes during the last decades. Denmark has gone from being an agricultural/industrial society to becoming a society where services are the dominant activity. In 1960, almost one in three of all employed people worked within agriculture and fishing, and more than a third of the total labour force worked within manufacturing and construction. In 2001, the corresponding percentages were less than one in twenty and less than one in four. In turn, the proportion of employed persons working within services has increased from well below half of all employed persons to almost three in four of all employed persons. The most pronounced increase has occurred within public services. About 30 per cent of all employed persons now work within public services compared to only about 10 per cent in Figure 1 Employment by industry Agriculture and fishing Manufacturing Private services Public services Enterprises and work places Business structures are ideally described by using two business levels: enterprises and work places. The enterprise is legally and financially responsible for the operation of the enterprise. Each enterprise owns one or more work places. A work place is a defined part of an enterprise situated at a given address which produces one - or mainly one - type of goods or service. Thus, work places are the sites where physical production of goods or services takes place. Number of enterprises There are about 280,000 enterprises in Denmark with a real activity, i.e. enterprises performing work corresponding to at least ½ man-year. Agriculture and fishing account for more than one in five of these enterprises, while the main activity of more than two thirds of all enterprises concern trade and other services. Thus, manufacturing accounts for less than one in ten of all enterprises in Denmark, with construction accounting for a similar percentage. 1
2 Figure 2 Enterprises by industry 1999 Number of enterprises Agriculture and fishing Manufacturing Construction Trade and hotels Other services Manufacturing accounts for the largest enterprises The size of enterprises varies considerably. Whereas an enterprise within agriculture and fishing employs slightly less than one full-time employee, manufacturing enterprises employ an average of almost 17 full-time employees. Figure 3 Enterprise sizes Avarage number of employees Agriculture and fishing Manufacturing Construction Ws. & retail trade, hotels Other services Turnover and exports The goods or services produced are sold in Denmark or abroad, and enterprises within industries, which are liable to pay VAT accounted for turnover totalling approximately DKK 2,100 billion in Of this amount, exported goods and services accounted for slightly more than DKK 440 billion. The remaining goods and services were sold in Denmark. As regards domestic sales, the same goods are often included in statistics more than once. This may be caused by the fact that the same goods may be sold by producers to wholesale traders, who sell them on to retailers before they are finally sold to the end user. Approximately 40 per cent of the total turnover of goods and services pass though a trading enterprise. As regards exports, approximately one quarter of all goods and services pass through a trading enterprise. The remaining goods and services are exported directly from the producer. 2
3 Figure 4 Turnover and exports 1999 Agriculture and fishing Manufacturing Construction Trade and hotels Turnover Of which export Other services DKK billion Enterprises within manufacturing account directly for half of all sales of goods and services abroad. Processed goods from agriculture and fishing account for a considerable part of manufacturing exports. This fact, and the fact that unprocessed goods from these two primary sectors are exported through trading enterprises, explains why exports directly from agriculture and fishing are very limited. By its nature, construction is primarily for domestic markets. Exports only account for a small percentage of the total turnover within construction, and such exports account for a very small part of total Danish exports. Service enterprises account for one fifth of total exports, with transport accounting for a very significant percentage of this figure. 2. Earnings Figure 5 The objective of private business activity The objective of private business activity is to generate profits. Enterprise accounts show the extent to which this objective is met. Statistics based on information from such accounts serve to elucidate this for groups of enterprises and the statistics show some characteristic differences between enterprises in selected industries. Enterprises results. Selected industries Business activities, etc. Transport Hotels and restaurants Retail trade Wholesale trade Sales of motor vehivles Construction Manufacturing Quarrying Consumption of goods & services, subcontractors Wages, salaries, etc. Other costs Result before tax Per cent 3
4 3. Establishments The profits - or results - in relation to turnover for businesses within quarrying differ from the other industries with a very high profit percentage. This also applies to enterprises within general business activities, while the profits in relation to turnover are significantly lower for enterprises within trade. In retail enterprises, production consists in selling products without changing them. Thus, work effort per DKK 1 turnover is significantly smaller within trade than within manufacturing and construction, which does of course entail similarly smaller profit percentages in relation to turnover for trade enterprises. Naturally, this is reflected in enterprise accounts: consumption of goods constitutes a considerably large percentage of turnover in trade enterprises, while expenditure on consumption of goods is relatively low for other enterprises within the service sector. However, a major item of expenditure within the service sector is payroll costs; this is also the case within manufacturing and construction. In these industries, payroll costs make up about 25 per cent of turnover, while the corresponding figure is about 10 per cent for trade enterprises and under 2 per cent for enterprises within quarrying. Small regional differences A single enterprise may have several work places at different sites in Denmark, and the accounts statistics by region are compiled on the basis of the profits made at each individual work place. Within most industries, profits are roughly the same for work places in the different regions. Most work places are small Denmark has almost 300,000 permanent work places. Approximately 3 million jobs are being performed at these work places or at work places which have not been stated. "Not stated" is a category of work places used in the preparation of statistics in order to include jobs which cannot be pinpointed to one permanent work place, e.g. cleaning business, insurance business, social- and health services (child-minders, district nurses, etc.). Figure 6 Work places, by industry and size 1999 Agriculture and fishing Manufacturing Construction Trade and hotels 1-4 jobs 5-19 jobs jobs +50 jobs Other services Per cent There is an average of ten jobs per work place, but the vast majority of all work places are small. More than two-thirds of all work places have fewer than five jobs, and only approximately 9,000 work places in Denmark feature 50 jobs or more. 4
5 Figure 7 Number of jobs, by sector 2000 These work places are, however, so large that almost half of all jobs in Denmark are found at work places with 50 jobs or more. Large work places are most commonly centred around large cities. Approximately 15 per cent of all work places with 100 jobs or more are situated in Copenhagen Municipality, and the counties which are home to the other major Danish cities accommodate a substantial proportion of the remaining large work places. Work places are particularly small within agriculture and fishing. Most work places comprise only one job, and the person working at such a work place is usually the owner himself. The largest work places are found within manufacturing and services. As regards services, large work places are particularly common within public-service activities. General government Public companies Private sector One-third of all jobs are public-sector jobs Approximately 9 per cent of all work places are found within the public sector, which comprises general government as well as publicly owned companies. Publicly owned companies account for 1 per cent of all work places, while general government accounts for approximately 8 per cent. Work places are, however, relatively large within these two areas, as each work place has 38 jobs on average. Thus, the public sector accounts for more than onethird of all jobs in Denmark. The private sector accounts for 91 per cent of all work places in Denmark, but as these work places are considerably smaller on average than public-sector work places (the average number of people employed at a private work place is seven), just less than two-thirds of all jobs are within the private sector. 4. New enterprises New enterprises mainly operate within business services and trade Approximately 18,000 actual new enterprises are created each year in Denmark. This figure does not include changes in the registration of existing enterprises, nor does it include transfers of ownership of existing enterprises. A substantial proportion of all new enterprises work within business services and within wholesale and retail trade. The majority of new enterprises are sole proprietorships, and more than twice as many men as women start their own business. Of course, new enterprises are very vulnerable. This is reflected by the fact that only slightly more than half of all new enterprises remain active four years after commencing. This figure covers considerable variations within the different industries. As regards enterprises within retail trade, less than half remain active after a four-year period, while more than two-thirds of all new construction enterprises are still in business after four years have elapsed. 5. Denmark and the EU Business structures across borders It is difficult to carry out international comparisons of business structures, as individual countries often utilise different methods to define and determine business activities. Eurostat collects information from EU Member States and has facilitated comparisons between these statistics by disregarding the very smallest enterprises 5
6 found in all Member States. This means that comparable figures exist for EU countries as regards the following industries: manufacturing, construction, and wholesale/retail trade and hotels. For these industries, the Danish business structure is only marginally different from that of EU countries in general. In terms of employment, manufacturing and wholesale/retail sale plus hotels are of equal size, while employment rates within construction correspond to only one-third of those found within each of the other groups. This applies to Denmark as well as to the EU in general. Danish enterprises are, however, somewhat larger than the EU average. Figure 8 Employment within manufacturing, construction, wholesale and retail trade, and hotels Per cent Trade and hotels Construction Manufacturing Source: Eurostat EU Denmark Sweden Germany Netherlands However, certain differences appear when comparing Denmark with our neighbouring EU countries. In Sweden and Germany, a larger proportion of all employed persons work within manufacturing, while more people are employed within wholesale/retail trade and hotels in the Netherlands than in Denmark. The average sizes of enterprises are more or less the same in all four countries. Figure 9 Enterprises by size Avarage number of employees EU Denmark Sweden Germany Netherlands Source: Eurostat 6
7 Table 256 Workplaces, wage and salary costs, by county Workplaces at the end of November Jobs at the end of November Full-time employees Annual wage and salary costs DKK mio. Total Copenhagen Municipality Frederiksberg Municipality Copenhagen County Frederiksborg County Roskilde County West Zealand County Storstrøm County Bornholm County Funen County South Jutland County Ribe County Vejle County Ringkøbing County Århus County Viborg County North Jutland County Outside Denmark
8 Table 257 Workplaces, aggregate wage and salary costs. By industry Workplaces at the end of November Jobs at the end of November Full-time employees Annual wage and salary costs DKK mio. Total Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Wholesale. and retail trade, hotels and restaurants, etc Transport, storage and communication activities Public and personal services
9 Table 258 (continued) Workplaces, wage and salary costs, by industry 2000 Workplaces at the end of November Jobs at the end of November Full-time employees Annual wage and salary costs DKK mio. Total Agriculture, fishing and quarrying Agriculture Market gardening, nurseries, orchards Agricultural and animal husbandry services, etc Forestry, logging and related services Fishing etc Extr. of crude petroleum, natural gas etc Extr. of gravel, clay, stone and salt etc Manufacturing Production of meat and meat products Mfr. of dairy products Baker s shops Mfr. of other food products Mfr. of beverages Mfr. of tobacco Mfr. of textiles Mfr. of clothing and furs Mfr. of leather and footwear Mfr. of wood and wood products Mfr. of pulp, paper and paper products Publishing of newspapers Publishing activities, excluding newspapers Printing activities etc Mfr. of refined petroleum products, etc Mfr. of chemical raw materials Mfr. of paints, soap, cosmetics, etc Mfr. of pharmaceuticals Mfr. of plastic and rubber products Mfr. of glass and ceramic goods, etc Mfr. of bricks, cement and concrete, etc Mfr. of basic metals Mfr. of construct. materials of metal Mfr. of hand tools, packaging of metal etc Mfr. of marine engines, compressors etc Mfr. of other general purpose machinery Mfr. of machinery and forestry machinery Mfr. of machinery for industries etc Mfr. of domestic appliances n.e.s Mfr. of computers, electric motors, etc Mfr. of radio and communication equipment, etc Mfr. of medical and optical inst. etc Building and repairing of ships and boats Mfr. of transport equipment, excl. ships Mfr. of furniture Mfr. of toys, gold and silver articles etc
10 Table 258 (continued) Workplaces, wage and salary costs, by industry 2000 Workplaces at the end of November Jobs at the end of November Full-time employees Annual wage and salary costs DKK mio. Electricity, gas and water supply Production and distribution of electricity Manufacture and distribution of gas Steam and hot water supply Collection and distribution of water Construction General contractors Bricklaying Instal. of electrical wiring and fittings Plumbing Carpentry and joinery Painting and glazing Other construction work Ws. and retail trade, hotels and restaurants, etc Sale of motor vehicles, motor cycles etc Maintenance and repair of motor vehicles Retail sale of automotive fuel Wholesale agricul. corn, raw material, live animals Ws. of food, beverages and tobacco Ws. of textiles, household goods Ws. of wood and construction materials Ws. of other raw mat. and semi manufactures Ws. of machinery, equipment and supplies Commission trade and other wholesale trade Retail sale of food in non-specialized stores, supermarkets, etc Retail sale of food in specialized stores Department stores Re. sale of pharm. goods, cosmetic art. etc Re. sale of clothing, footwear etc Re. sale of furniture, household appliances, etc Re. Sale in other specialized stores Repair of personal and household appliances etc Hotels etc Restaurants etc Transport, storage and communication Transport via railways and buses Taxi operation and coach services Freight transport by road and via pipelines Water transport Air transport Support. trans. activities; travel agencies Post and telecommunications
11 Table 258 Workplaces, wage and salary costs, by industry 2000 Workplaces at the end of November Jobs at the end of November Full-time employees Annual wage and salary costs DKK mio. activities Monetary intermediation Mortgage credit institutions etc Insurance and pension funds Activities auxiliary to finan. intermediat Letting of property Real estate agents, etc Renting of machinery and equipment, etc Computer and related activities Research and development Legal advice Accounting, bookkeeping, auditing, etc Consulting engineers, architects, etc Advertising, marketing Cleaning activities Other business activities Public and personal services General public service activities Regulation of public service activities Defence, police and judicial system Primary education etc Upper-secondary education Higher education Adult and other education etc Hospital activities Medical, dental, veterinary activities etc Social institutions etc. for children Social institutions etc. for adults Sewerage and refuse disp. and similar activities Activities of membership organizations, n.e.s Recreational, cultural, sporting activities Other service activities
12 Table 259 (continued) Workplaces by size, county and industry 2000 Jobs at workplaces at the end of November Total workplaces, total Total Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Copenhagen Municipality Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Frederiksberg Municipality Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Copenhagen County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Frederiksborg County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services
13 Table 259 (continued) Workplaces by size, county and industry 2000 Jobs at workplaces at the end of November Total workplaces, total Roskilde County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services West Zealand County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Storstrøm County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Bornholm County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Funen County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services
14 Table 259 (continued) Workplaces by size, county and industry 2000 Jobs at workplaces at the end of November Total workplaces, total South Jutland County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Ribe County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Vejle County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Ringkøbing County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Århus County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services
15 Table 259 Workplaces by size, county and industry 2000 Jobs at workplaces at the end of November Total workplaces, total Viborg County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services North Jutland County Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Outside Denmark Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Ws and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services
16 Table 260 (continued) Jobs by size of workplace, county and industry 2000 Jobs at the workplace at the end of November Not stated Total number of jobs Total Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Copenhagen Municipality Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Frederiksberg Municipality Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Copenhagen County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Frederiksborg County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Roskilde County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction
17 Table 260 (continued) Jobs by size of workplace, county and industry 2000 Jobs at the workplace at the end of November Not stated Total number of jobs Roskilde County (cont.) Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services West Zealand County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Storstrøm County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Bornholm County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Funen County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services South Jutland County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication
18 Table 260 (continued) Jobs by size of workplace, county and industry 2000 Jobs at the workplace at the end of November Not stated Total number of jobs South Jutland County (cont.) activities Public and personal services Ribe County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Vejle County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Ringkøbing County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Århus County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Viborg County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services
19 Table 260 Jobs by size of workplace, county and industry 2000 Jobs at the workplace at the end of November Not stated Total number of jobs North Jutland County Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services Outside Denmark Agriculture, fishing and quarrying Manufacturing, energy and water supply Construction Ws. and retail trade, hotels and restaurants Transport, storage and communication activities Public and personal services
20 Table 261 Workplaces, jobs, wage and salary costs, by sector 2000 Workplaces at the end of November Jobs at the end of November Full-time employees Annual aggregate wage and salary costs DKK mio. Total Private sector Public sector, total Public corporations and quasi-corporations General government Central government Social security funds Counties Municipalities
21 Table 262 Workplaces by size and sector 2000 Jobs at workplaces at the end of November Total number of workplaces Total Private sector Public sector, total Public corporations and quasi-corporations General government, total Central government Social security funds Counties Municipalities
22 Table 263 Jobs by size of workplace and sector 2000 Jobs at workplaces at the end of November Not stated Total number of workplaces Total Private sector Public sector, total Public corporations and quasi-corporations General government, total Central government Social security funds Counties Municipalities
23 Table 264 New enterprises, turnover and number of employees 2000 Total number of enterprises Turnover reported for VAT Average turnover Enterprises with employees Number of employees end November DKK thousands Total Manufacturing Construction Wholesale, retail trade, hotels and restaurants Of which: Wholesale Retail trade Hotels and restaurants Transport, storage and communication Financial intermediation etc. business activities Public and personal services Activity not known
24 Table 265 New sole proprietorships by sex and age of owner 2000 Men Women Under 30 years years 40+ years Total Under 30 years years 40+ years Total Total Manufacturing Construction Wholesale, retail trade, hotels and restaurants Of which: Wholesale Retail trade Hotels and restaurants Transport, storage and communication Business services Personal services Activity not known pct. Total
25 Table 266 Enterprises by kind of ownweship and industry 1999 Sole proprietorship Personally owned company Public limited company Private limited company Foundation, society, etc. Cooperative society, etc. Public authority Other owner Total number of enterprises Total Agriculture, fishing and quarrying Manufacturing Electricity, gas and water supply Construction Wholesale and retail trade, hotels and... restaurants, etc Transport, storage and communication activities Public and personal services Activity not stated Note Number of real active enterprises.
26 Table 267 Enterprises by full-time equivalent employees and industry 1999 Number of full-time equivalent employees Total number of enterprises Total Agriculture, horticulture and forestry Fishing, services incidental to fishing Mining and quarrying Mfr. of food, beverages and tobacco Mfr. of textiles, wearing apparel, leather Mfr. of wood products, printing and publ Mfr. of chemicals, plastic products etc Mfr. of other non-metallic mineral products Mfr. of basic metals and fabr. metal prod Mfr. of furniture; manufacturing n.e.c Electricity, gas and water supply Construction Sale and repair of motor vehicles etc Ws. and commis. trade, exc. of m. vehicles Re. trade and repair work exp Hotels and restaurants Transport Post and telecommunications Financial intermediation and insurance etc Letting and sale of real estate Business activities etc Public administration and defence etc Education Human health activities Social institutions etc Ref. disposal, organiz., entertainment etc Activity not stated Note Number of real active enterprises, that means enterprises where a performance of at least 0,5 full-time equivalent employees has been performed.
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