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

Metadata

Statistics