The prototype tables for a restored Enterprise Statistics Program were prepared using the final 2007 Economic Census records for establishments with and without paid employees as well as related records of domestic establishments primarily engaged in industries not covered in the 2007 Economic Census (out-of-scope). However, data for firms with no paid employees, or nonemployers, are limited to prototype Table C. Data for these firms are not included in the other prototype tables of this enterprise statistic report or in most 2007 Economic Censuses reports because they are not available at the same level of industry coding as the data for firms with paid employees.¹ In addition, not all important data items collected on the 2007 establishment report forms, such as value added and inventories, were selected for the prototype tables. Such items were excluded because they were not collected on all 2007 Economic Census establishment report forms and the prototype tables show data for all industries covered in 2007.

In general, the establishment statistics in this enterprise statistics report are comparable to the corresponding statistics published in the regular 2007 Economic Census reports with several exceptions. For the enterprise statistics report, establishments providing certain service activities for other establishments of the same company are classified as auxiliaries and not in the industry that covers these services, such as "Warehousing and Storage" and "Scientific Research and Development." Establishments classified in the 2007 Economic Census in the "Monetary Authorities - Central Bank" industry are classified as out of scope. Some census establishment records were reclassified or deleted as part of the special post-census review used to prepare this prototype enterprise statistics report.

Based on these domestic establishment records, a primary enterprise industry category classification was assigned using establishment payroll data. For each enterprise, the classification methodology started by excluding nonoperating establishments - establishments classified as manufacturers' sales branches and offices, central administrative offices (NAICS 551114), and auxiliaries. From the remaining establishments, a primary NAICS sector was selected. If the primary sector was outside the scope of the 2007 Economic Census, the records of the establishments in these sectors were deleted and a primary in-scope sector was selected based on payroll. The primary enterprise industry category is the category in that sector with the largest aggregate payroll. (This is the same method used for previous enterprise statistics programs.)

Two company characteristics - employment size and industry specialization - are shown in the prototype tables. These characteristics are calculated from enterprise records that are compiled to prepare the enterprise statistics report. The enterprise records consist of the establishment records for each company - operating establishments, including those outside the scope of the 2007 Economic Census of primarily within scope companies (manufacturers' sales branches and offices, central administrative offices, and auxiliaries).² Employment size for each enterprise is determined by summing the employment for all establishments of the company. The primary industry specialization of each company is calculated as the ratio of the sum of establishments classified in the same enterprise category as the owning company divided by the sum of all operating establishments of the owning company; data for manufacturers' sales branches and offices, central administrative offices, and auxiliaries are excluded from the calculation of the industry specialization ratio.

The prototype tables capture most of the types of data shown in previous enterprise statistics reports. Some types of data were omitted from the prototype tables because of the limited time to develop them - e.g., geographic distributions and legal form of organization. Other data were omitted because the data needed to produce them was no longer available – e.g., net company sales and receipts and business expenses. Finally, tables show only data for 2007; comparable data for earlier years is not available.

The prototype enterprise statistics tables were designed to reduce their size and to minimize the number of cells where it would be necessary to withhold a data item to avoid disclosure. For employment, some useful information is provided by a letter code, which as shown in the footnotes to these tables, designating a broad employment size class into which the actual figure falls. When it was necessary to withhold a dollar or ratio, size class ranges were not used and the symbol "(D)" appears.

Table A1 presents selected statistics collected in the 2007 Economic Census for establishments with paid employees by the equivalent enterprise industry category and sector classification system used in this prototype 2007 enterprise statistics report. The number of companies and establishments, employment, annual payroll, and sales and receipts are shown for each of these categories. These statistics also are aggregated to show the same statistics for each sector. For the "Other Establishments" sector, which partly includes establishments covered in the 2007 Economic Census, and for "All Industries," sales and receipts are not shown.³

"All establishments" statistics for each industry category and sector are shown in column (a) of Table A1 regardless of the classification of their owning companies. For each industry category, these "all establishments" data are allocated between those establishments classified in the same industry category as their owning companies, in column (b), and those establishments whose owning companies are classified in different categories, in column (c). The data shown in column (c) are further subdivided by the industry sector classification of the owning company - the same sector in column (d) and a different sectors in column (e).

Column (f) shows the "Ownership Specialization Ratio," which is calculated as column (b) divided by column (a). This ratio provides a summary measure of the extent to which establishments classified in a given industry category are owned by companies classified in the same category. This ratio is calculated only for operating establishments classified within the scope of the 2007 Economic Census; within scope establishments that were primarily engaged in providing certain service activities for other establishments of the same company are shown as "Other Establishments" in this table. These establishments consist of manufacturers' sales branches and offices (part of Wholesale Trade), central administrative offices (part of Management of Companies and Enterprises), and auxiliaries (primarily parts of "Warehousing and Storage" and "Scientific Research and Development").

Table A2A distributes the 2007 Economic Census establishment statistics shown in Table A1 by two characteristics of their owning companies - employment size and industry specialization. These characteristics are calculated from enterprise records that consist of the establishment records for each company - operating establishments, including those outside the scope of the 2007 Economic Census of primarily within scope companies (manufacturers' sales branches and offices, central administrative offices, and auxiliaries).

The first characteristic, company employment size, is determined by summing the employment for all establishments of the company. In Table A2A, establishment data for each enterprise category are shown for four enterprise size classes - more detailed size classes but only for the number of companies are shown in Table A2B. The second characteristic, primary industry specialization of the owning company, is calculated as the ratio of the sum of establishments classified in the same enterprise category as the owning company divided by the sum of all operating establishments of the owning company - i.e., manufacturers' sales branches and offices, central administrative offices, and auxiliaries are excluded from the calculation of the industry specialization ratio. For each enterprise industry category, the establishment data are shown separately for companies whose establishments are classified in a single industry category (100% industry specialization or single-industry companies) and for companies whose operating establishments are classified in more than one industry category (under 100% specialization or multi-industry companies). Industry specialization provides a summary measure of the extent to which a company operates in multiple industries, and in Table A2A it shows the extent to which establishments in a category are owned by diversified or nondiversified firms.⁴

To reduce the size of the table and number of suppressed cells, statistics in Table A2A at the industry category level have been limited to the number of companies and employees, and sales and receipts. (For "Other Establishments," only the number of companies and employees are shown.) For each of the two industry specialization categories, only the number of companies is shown.

Table A2B provides expanded detail on the 2007 Economic Census establishment data shown in Table A2A. The number of employment size classes is expanded from four to ten and the industry specialization category for multi-industry companies is expanded to show quartiles. Unlike Table A2A, only the number of companies is shown at all levels.

Table B1 presents selected statistics collected in the 2007 Economic Census for establishment records of firms with paid employees for companies classified in each of the 376 enterprise industry categories and their sectors. Statistics are shown at the enterprise industry category, sector, and all industry levels for the number of companies, establishments, and employees.

As noted in the description of the Enterprise Classification System, a primary enterprise industry category classification is assigned to each company based on payroll of domestic establishments. For each enterprise, the classification is determined using only operating establishments; it ignores establishments classified as manufacturers' sales branches and offices, central administrative offices (NAICS 551114), and auxiliaries. From the remaining establishments, a primary NAICS sector is selected. If the primariy sector is outside the scope of the 2007 Economic Census, the records of the establishments in these sectors are deleted and a primary in-scope sector is selected based on payroll. The primary enterprise industry category is the category in that sector with the largest aggregate payroll.

"All establishments" statistics for each industry category and sector, shown in column (a) of Table B1, are aggregations of domestic establishment records of companies determined to be primarily in scope of the 2007 Economic Census.⁵ These establishment records, which are shown in Table A1 by the classification of the establishment, include all within-scope establishments except for those classified in NAICS 5211, "Monetary Authorities - Central Bank," and establishment records classified outside the scope of the 2007 Economic Census of primarily out-of-scope firms. Their statistics are distributed as follows: establishments classified in the same industry category as their owning companies, in column (b); operating establishments classified in different industry categories, in column (c); and establishments classified as manufacturers' sales branches and offices, central administrative offices, and auxiliaries in column (d).

Column (e) shows the industry specialization ratio, which is calculated as column (b) divided by the sum of columns (b) and (c). This ratio provides a summary measure of the extent to which companies in an enterprise industry operate in their primary industry and is a measure of the extent of diversification of the enterprises classified in an enterprise category.

Table B2A distributes several of the company statistics shown in Table B1 by two company characteristics - employment size and industry specialization.⁶ These characteristics are calculated from enterprise records that consist of the establishment records for each company - operating establishments, including those outside the scope of the 2007 Economic Census of primarily within scope companies (manufacturers' sales branches and offices, central administrative offices, and auxiliaries).

Employment size for each enterprise is determined by summing the employment for all establishments of the company. In Table B2A, establishment data for each enterprise category are shown for four enterprise size classes - more detailed size classes but only for the number of companies are shown in Table B2B. The primary industry specialization of each company is calculated as the ratio of the sum of establishments classified in the same enterprise category as the owning company divided by the sum of all operating establishment of the owning company; data for manufacturers' sales branches and offices, central administrative offices, and auxiliaries are excluded from the calculation of the industry specialization ratio. For each enterprise industry category in Table A2A, the establishment data are shown separately for companies whose establishments are classified in a single industry category (100% industry specialization or single-industry companies) and for those whose operating establishments are classified in more than one industry category (under 100% specialization or multi-industry companies). Industry specialization provides a summary measure of the extent to which a company operates in multiple industries. In Table A2A, it shows the extent to which establishments in a category are owned by diversified or nondiversified firms.⁷

To reduce the size of the table and number of suppressed cells at the enterprise industry category level, statistics in Table B2A have been limited to the number of companies and establishments and employment at the "All Industries" and sector levels, and number of companies and employment at the total industry category level. For each of the two industry specialization categories, the same level is shown at the "All Industries" level, companies and employment at the sector level, and only companies at the enterprise category level.

Table B2B provides expanded detail for the company data shown in Table B2A. The number of employment size classes is expanded from four to ten, and the industry specialization category for multi-industry companies is expanded to show quartiles. Unlike Table B2A, only the number of companies is shown at all levels.

Table B3 shows the extent and specific nature of industrial diversification patterns reported in the 2007 Economic Census at the enterprise industry category level.⁸ The table presents an expanded view of the data in column (c) of Table B1 -- establishments classified in a different industry category than the companies primary activity and column (d) nonoperating establishments. Table B3 also presents an expanded view of the data in column (c) of Table A1 - establishments whose owning company is classified as primarily engaged in a different industry category. (These data must be derived by summing the row detail for each enterprise category.) Thus, Table B3 can be thought of as a matrix whose columns show the detailed establishment industries of the companies classified in each industry and rows show the detailed company industries of the establishments in each industry category.

Three data items are shown in Table B3, number of establishments and companies and employment. Unlike the other prototypes tables, all employment data are designated by a broad employment size class into which the actual figure falls whether or not it was necessary to suppress the actual data.

Table C provides the number of, and sales and receipts for, firms with no paid employees, or "nonemployer" firms. Data for these firms are not included either in the Tables A1 - Table B3 of this enterprise statistics report or most 2007 Economic Census reports. The number of, and sales and receipts for, these firms are published annually in a separate Nonemployer Statistics report. These data are presented by NAICS industry, geography, and legal form of organization, and are derived from Federal income tax returns. Because the level of industry coding available from these returns is limited, data for each enterprise industry category cannot be shown, so that some categories have been combined for this table. Although for most industries, nonemployer firms do not account for a significant share of sales and receipts, they do account for most of the number of businesses. In addition, it is assumed that because these firms operate only a single establishment, the classification of the establishment and enterprise is the same.

¹ The number of, and sales and receipts for, these firms by industry are published annually by the Census Bureau in the separate Nonemployer Statistics report.
² These enterprise records are similar to those compiled for the selection of the sample of firms for the Annual Capital Expenditures Survey.
³ Sales and receipts for "Other Establishments" are not shown because for manufacturers' sales branches and offices (part of Wholesale Trade in the economic census reports), central administrative offices (NAICS 551114 in the economic census reports), and auxiliaries (primarily parts of "Warehousing and Storage" and "Scientific Research and Development" industries in the economic census reports) because the sales and receipts reported in the economic censuses typically duplicate sales reported by the operating establishments of their owning company that are included in the data for the other sectors. Sales and receipts data were not collected for census out-of-scope establishments.
⁴ Because most of the enterprise industry categories consist of more than one NAICS industry, a single-industry company can have establishments in more than one NAICS industry or one operating establishment and one or more nonoperating establishments.
⁵ Unlike Table A1, sales and receipts data are not shown in Table B1 because aggregations of sales data for multi-establishment companies would significantly overstate the actual net sale and receipts for such firms. In previous enterprise statistics reports, enterprise industry category sales and receipts were published because the Census Bureau collected unduplicated data from large companies to replace the sum of their establishment sales data. These unduplicated sales data were not collected in 2007.
⁶ Statistics in Table B2A have been limited to reduce the size of the table and number of suppressed cells. At the category level, the number of establishments and payroll are not shown; at the specialization category level, only the number of companies is shown.
⁷ Because most of the enterprise industry categories consist of more than one NAICS industry, a single-industry company can have establishments in more than one NAICS industry or one operating establishment and one or more nonoperating establishments.
⁸ The establishment data shown in the rows of this table also can be presented at the detailed NAICS industry level. Because such a table would have over 1,000 rows, it was omitted from the prototype 2007 enterprise statistics programs tables.