Press Release 12/21/2017

BASQUE BUSINESS STRUCTURE AND DEMOGRAPHY 01/01/2017

97.6% of companies operating in the Basque Country in 2017 were based here

The greatest rotation was seen in the branches of Trade, Transportation and Hotel Management & Catering, with 29.5% of new openings and 33.1% of closures

At the beginning of 2017, there were 158,086 companies operating in the Basque Country in various sectors of economic activity, of which 97.6% were based in the Basque Country, according to Eustat data. These companies carried out their activities in 175,393 establishments (factories, shops, offices, etc.) with 14.2% in Álava, 51.8% in Bizkaia and 34.0% in Gipuzkoa.

By activity sector, the number of establishments increased compared to the previous year in the sectors of Public Administration, Education & Health (2.1%), Agriculture and Fishing (1.7%), Information & Communications (1.5%), Other Services (1.2%), Real Estate Activities (1.1%) and Professional & Auxiliary Activities (0.6%). On the other hand, there was a notable decrease in the number of establishments within the Industrial sector (-2.6%), the Financial and Insurance Activities sector (-1.8%), Trade, Transportation and Hotel Management (-0.9%) and the Construction sector (-0.6%). The overall balance for the establishments as a whole was down 0.2%.

The largest sector was Trade, Transport and Hotel Management & Catering, with 37.7% of all establishments, followed by Professional Activities and Support Services (16.3%) and Construction (11.7%).

Throughout 2016, the distribution of establishments according to their size remained very similar to the previous year. Barely 2,385 establishments, 1.4% of the total, had 50 or more employees, despite accounting for 39.9% of the total. On the other hand, 129,892 establishments, almost three-quarters of the total, employed fewer than 3 people and accounted for just 18.3% of all those in work.

As regards the average size of the establishments by branch of activity, the greatest concentration of employed individuals was recorded in Industry, Energy and Sewerage, both in terms of the Basque Country overall, with an average size of 15.1 employees per establishment, and at provincial level, with Álava standing out at 19.2; the average size in Bizkaia and Gipuzkoa was 13.6 and 14.9 employees per establishment, respectively.

COMPANIES

Of the total of companies, legal units that provide support for the establishments' activities, 97.6% were based in the Basque Country and 3,785 in the rest of the State. Bizkaia, with 79,911 companies, contributed just over half; Gipuzkoa 52,928 (33.5%) and Álava 21,462 (13.6%).

The average size of companies in the Basque Country remained stable, with 5.5 employees per company and 5.0 per establishment. The analysis by legal status reveals, however, noticeable differences. Companies under individual ownership only had 1.4 employees, both per company and establishment, whereas for the other legal forms these averages reached 11.4 and 9.3 employees per company and establishment, respectively.

BUSINESS DEMOGRAPHICS

In relation to age, the presence of relatively recent companies to the Basque business scene should be pointed out. 32.7% of companies operating in the Basque Country were five years old or under and the percentage of those in operation for two years or under stood at 17.2%.

Regarding rotation, and taking into account openings and closures of establishments, almost the same number began and ended activity over 2016. The greatest rotation was seen in the branches of Trade, Transportation and Hotel Management & Catering, with 29.5% of new openings and 33.1% of closures; 18.4% of new openings and 17.1% of closures in Professional Activities and Support Services; and Construction, with figures of 17.6% and 17.8%, respectively. All of this gave a negative total net balance of 281 establishments.

In the analysis of demography by legal status, the establishments created under the individual ownership formula stand out for having generated 65.2% of new openings and 66.3% of closures.

In terms of individuals employed, individually-owned establishments accounted for 36.3% of jobs created and 41.9% of jobs lost. Following these, Limited Companies accounted for 33.3% of jobs created and 31.2% of jobs lost.

In terms of establishment size, the most dynamic stratum was that of 2 employees or under, as has become the norm. This stratum alone accounted for 90.3% of all registrations and 91.1% of all closures.

On the contrary, the stratum of Large Stores, those with 50 or more employees, only accounted for 0.3% of all establishments opened and 0.1% all closures. On the other hand, it accounted for 14.9% of all jobs created and 9.4% if all jobs lost.

For further information:

Eustat - Euskal Estatistika Erakundea / Basque Statistics Institute C/ Donostia-San Sebastián, 1 01010 Vitoria-Gasteiz Press Service: servicioprensa@eustat.es Tel: 945 01 75 62