Out of 32,765 active enterprises in 2020, 3,890 enterprises started operation in the business economy. That year, the most enterprise births were in construction, a total of 671 enterprises. In tourism industries during 2020, there were born 315 enterprises in comparison to 513 enterprises in 2019.
In 2020, the birth rate of enterprises in the total business economy was 11.9%. However, the birth rate of enterprises varies depending on economic activity. In 2020, the lowest birth rate 7.5% was in tourism industries, and the highest birth rate 15% was in high technology manufacturing and services.
Enterprise means both juridical entities and natural persons that are operating under their own ID number. Enterprises that started operations in the total business economy during 2020 had over 3,400 persons employed and around 45.5 billion ISK in turnover.
During the period 2017-2020, there were 1,654 high growth enterprises (HGEs) measured in average annualised turnover growth greater than 10% per annum over a three-year period. In 2020, there were over 28 thousand persons employed with combined turnover of 1,200 billion ISK in high growth enterprises. For comparison, the combine turnover of these enterprises was above 670 billion ISK in 2017, the beginning year of growth period.
To be precise, there were 1,231 HGEs with two to nine persons employed and around 290 billion ISK in turnover. In 2020, the number of HGEs with 10 or more persons employed was 423 with excess of 910 billion ISK in turnover.
In 2020, the highest combine turnover was in wholesale and retail trade HGEs, or above 490 billion ISK and in fisheries, or above 170 billion ISK. In comparison, combine turnover of all active enterprises in the total business economy was above 4,240 billion ISK.
The number of high growth enterprises (HGEs) decreased between years, from 1,682 in 2019 to 1,654 in 2020, or by 1.7% between years. The highest number of HGEs was in construction related industries, or 431 in 2020. It decreased as well, by 11.5% compared with 2019.
However, the number of HGEs increased significantly in wholesale and retail trade, from 266 in 2019 to 405 in 2020, or by 52%. As well, it increased significantly in fisheries, from 68 in 2019 to 127 in 2020, or by 87%.
The one-year survival rate of enterprises, which were born in 2019 and still were active one-year later, or in 2020, was over 73% in the total business economy. That survival rate wasn´t lower since 2009 for enterprises that were born in 2008. The highest one-year survival rate of enterprises, which were born in 2019 and still were active one-year later, or in 2020, was in fisheries, or around 80% and the lowest 69.8% in manufacturing excluding fish processing.
The five-year survival rate of enterprises, which were born in 2015 and still were active five-year later, or in 2020, was 39.7% in the total business economy. That rate was the highest in fisheries, or 46.9%, and the lowest 36.4% in high technology manufacturing and services.
Combine turnover of enterprises, which were born in 2015 and still were active five-year later, or in 2020, increased by over 24 billion ISK from 14.2 billion ISK to 38.3 billion ISK in the total business economy during the period.
In wholesale and retail trade, combine turnover of the 5 years old enterprises increased by 5.4 billion ISK from 2.2 billion ISK to 7.6 billion ISK between 2015 and 2020.
In the total business economy, the number of persons employed in enterprises that were born in 2015 and still were active five-year later, or in 2020, increased from 1,600 persons employed in 2015 to 2,600 persons employed in 2020, or by 63%.
Enterprises deaths population consists from enterprises with neither turnover nor persons employed for two calendar years. 3,313 enterprises in the business economy discontinued operations in 2018. Individuals with operation on their own personal identification number are included in enterprise definition, as well. These enterprises’ combine turnover was below 50 billion ISK in 2018. And the number of persons employed in these enterprises was over 3,300. The death rate of enterprises, which discontinued operations in 2018, was 10.3%. It increased by 0.6% in comparison to 2017.
Notes
*Transport (total); Accommodation, food and beverages; Leiga á vélknúnum ökutækjum; Renting and
leasing of motor vehicles, recreational and sports goods; Travel agency, tour operator and other reservation service and related activities; Service activities incidental to air transportation; Physical well-being activities
**Manufacture of chemicals and chemical products; Manufacture of weapons and ammunition; Manufacture of computer, electronic and optical products; Manufacture of electrical equipment; Manufacture of machinery and equipment n.e.c.; Manufacture of motor vehicles, trailers and semi-trailers; Manufacture of other transport equipment; Manufacture of medical and dental instruments and supplies; Postal and courier activities; Publishing activities; Programming and broadcasting activities; Telecommunications; Computer programming, consultancy and related activities; Information service activities; Scientific research and development
Methods
Business Demography Statistics are based on Eurostat and OECD harmonized methodologies. Therefore, they are comparable to statistics in other European countries. The statistics are based on tax returns of enterprises and individuals. It covers the private sector except agriculture, financial and insurance services. Public administration, health and social services, educational activities, cultural, sporting and recreational activities, as well as NGO activities, are excluded.
The statistics that are now published are for the period 2003-2020 and are broken down by industry according to ÍSAT2008.
Enterprises are considered active when they have operating income or personnel costs. When operation of enterprise moves between identification numbers, it is not considered to be an enterprise birth unless two of the following three conditions are met; operation is in another economic sector according to ÍSAT2008, operation is carried out at another location or the majority of staff has been changed. Adjustments are also made in connection with mergers and split-offs.
Enterprises newly born in t having survived to t+5 are enterprises that were active in terms of turnover and/or paid employment in any part of year t+1, t+2, t+3, t+4 and t+5 (= survival without changes). During data processing, corrections are made.
Amounts are at current prices.