Enterprises deaths population consists from enterprises with neither turnover nor persons employed for two calendar years. 3,022 enterprises in the business economy discontinued operations in 2016. Individuals with operation on their own personal identification number are included in enterprise definition, as well. These enterprises’ combine turnover was over 19 billion ISK in 2016 and the number of persons employed in these enterprises was over 2,700.
High technology manufacturing and services had the highest death rate in comparison to other economic activities, or 11% in 2016. The death rate in wholesale and retail trade, construction and tourism industries was 9%. In addition, the lowest death rate of enterprises was in manufacturing and fisheries 8% during 2016.
| The number of enterprise deaths, the number of persons employed and turnover broken down by business divisions for 2011-2016 | |||||
| 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% | 2713 | 2851 | 18.31 |
| 2012 | 10% | 2652 | 2768 | 25.62 | |
| 2013 | 9% | 2566 | 2468 | 18.36 | |
| 2014 | 10% | 2799 | 2698 | 21.9 | |
| 2015 | 10% | 2859 | 2865 | 31.99 | |
| 2016 | 10% | 3022 | 2735 | 19.05 | |
| Fisheries | 2011 | 8% | 119 | 133 | 0.81 |
| 2012 | 7% | 108 | 195 | 1.8 | |
| 2013 | 8% | 116 | 129 | 1.5 | |
| 2014 | 8% | 115 | 106 | 0.58 | |
| 2015 | 8% | 120 | 139 | 1.49 | |
| 2016 | 8% | 112 | 92 | 0.7 | |
| Manufacturing excluding fish processing | 2011 | 8% | 150 | 174 | 1.5 |
| 2012 | 9% | 165 | 219 | 1.24 | |
| 2013 | 7% | 132 | 176 | 1.42 | |
| 2014 | 8% | 144 | 188 | 1.6 | |
| 2015 | 6% | 105 | 143 | 1.53 | |
| 2016 | 8% | 151 | 120 | 0.64 | |
| Construction, mining and quarrying | 2011 | 12% | 524 | 680 | 4.1 |
| 2012 | 10% | 446 | 492 | 3.8 | |
| 2013 | 10% | 439 | 454 | 2.33 | |
| 2014 | 10% | 472 | 518 | 4.5 | |
| 2015 | 10% | 479 | 431 | 3.05 | |
| 2016 | 9% | 474 | 464 | 3.24 | |
| Wholesale and retail trade; repair of motor vehicles and motorcycles | 2011 | 8% | 328 | 334 | 3.54 |
| 2012 | 9% | 350 | 313 | 4.19 | |
| 2013 | 9% | 356 | 337 | 3.64 | |
| 2014 | 9% | 379 | 361 | 3.75 | |
| 2015 | 9% | 359 | 456 | 10.67 | |
| 2016 | 9% | 376 | 380 | 4.33 | |
| Tourism industries1 | 2011 | 8% | 200 | 327 | 1.73 |
| 2012 | 8% | 196 | 401 | 8.56 | |
| 2013 | 7% | 196 | 283 | 1.56 | |
| 2014 | 8% | 235 | 301 | 2.45 | |
| 2015 | 8% | 261 | 335 | 2.09 | |
| 2016 | 9% | 348 | 409 | 2.45 | |
| High technology manufacturing and services2 | 2011 | 12% | 222 | 216 | 0.74 |
| 2012 | 12% | 220 | 202 | 1.15 | |
| 2013 | 10% | 187 | 188 | 0.76 | |
| 2014 | 13% | 260 | 275 | 1.64 | |
| 2015 | 12% | 239 | 252 | 2.55 | |
| 2016 | 11% | 235 | 199 | 0.71 | |
When the proportion of enterprise deaths’ is compared with respect to active age, it is relatively stable independently from the reference year. The highest proportion of enterprise deaths’ is among young enterprises (with 0 to 5 years of active age), or between 65% and 71% during period 2011 – 2016. However, it was 68% during 2014-2016.
The majority of these enterprises were small, with over 95% of them employing none to 1 person, and their combined turnover was just over 12.4 billion ISK. Enterprises that had 2 or more persons employed in their last operating year were just under 5% of total enterprise deaths, but their combined turnover was 6.6 billion ISK in 2016.
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.
Enterprises deaths population consists from enterprises with neither turnover nor persons employed for two calendar years. When operation of enterprise moves between identification numbers, it is not considered to be an enterprise 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.
1 Transport (total); Accommodation, food and beverages; Renting and leasing of motor vehicles, recreational and sports goods; Travel agency, tour operator and other reservation service and related activities. 2 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.
Insolvencies and activity of companies