Enterprise death is when there has been no turnover nor persons employed for two consecutive calendar years. A total of 2,895 enterprises in the business economy discontinued operations in 2015. Individuals with operation on their own personal identification number are included in the enterprise definition. These enterprises’ combine turnover was over 36.5 billion ISK in 2015 and the number of persons employed in these enterprises was over 3,000. The majority of the enterprises were small, with over 92% employing none to one person and a combined turnover just under 15 billion ISK. Enterprises that had two or more persons employed in their last operating year were just under 8% of total enterprise deaths, but their combined turnover was 21.5 billion ISK in 2015.
|Enterprise deaths for 2015 broken down by persons employed|
|Persons employed||The number of enterprises||The number of persons employed, annual averages||Turnover, billion ISK|
Over the five-year period 2011-2015, fewest enterprises discontinued their operations in 2013 and most in 2015.
High technology manufacturing and services had the highest death rate, between 10% and 13%, compared with other economic activities in 2011–2015. Construction industry had the second highest death rate, between 10% and 12% during the same period. The lowest death rate of enterprises was in manufacturing and fisheries between 6% and 9%.
|The death rate, the number of enterprise deaths, persons employed and turnover (billion ISK) by business divisions|
|Business divisions/ special aggregates||Year||The death rate of enterprises||The number of enterprises||The number of persons employed, annual averages||Turnover, billion ISK|
|Total business economy including fisheries and excluding financial and insurance activities||2011||10%||2730||3000||47.33|
|Manufacturing excluding fish processing||2011||8%||151||196||1.66|
|Construction, mining and quarrying||2011||12%||528||709||4.32|
|Wholesale and retail trade; repair of motor vehicles and motorcycles||2011||8%||332||402||31.93|
|High technology manufacturing and services2||2011||12%||223||212||0.79|
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.
Enterprise death is when there has been no turnover nor persons employed for two consecutive calendar years. When operation of enterprise moves between identification numbers, it is not considered death 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.
Amounts are at current prices.