Ministry of Internal Affairs and Communications Statistics Bureau
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Establishment and Enterprise Census

Summary of the Results of the 1999 Census

General Situation of Establishments

1 The number of private establishments declined to 6,203,000 from the previous survey

The number of private establishments in Japan stands at 6,203,000 as of July 1, 1999, decreasing 319,000 or 4.9% over three years from the previous survey of 1996. This represents a 1.8% decline per annum. (The figures in the graph are displayed on an annual basis for the purpose of chronological comparison)

Figure1  Trends in Number of Establishments (1963-1999)

Figure  Trends in Number of Establishments (1963-1999)

2 Both secondary and tertiary industries show substantial decrease in number of establishments

An examination of the three industrial sectors reveals a significant decline in the secondary (down 118,000 or 8.3%) and tertiary industries (down 200,000 or 3.9%). The tertiary industry posted a decline in this survey.
A comparison of the decline in establishments with 1996 figures by major industry group reveals a decrease of 162,000 establishments (down 5.7%) in "wholesale and retail, restaurants", a decline of 83,000 establishments (down 10.7%) in "manufacturing", and a drop of 35,000 establishments (down 5.4%) in "construction".

Figure2  Trends in Annual Growth Rate of Number of Establishments by Three Industrial Sectors (1981-1999)

Figure  Trends in Annual Growth Rate of Number of Establishments by Three Industrial Sectors (1981-1999)

(Note) Primary industry excludes private-managed establishments.

3 "Transport and communications" has the highest percentage of new establishments

A look at the percentage of new establishments by major industry group reveals a high percentage in "transport and communications" (15.9%), followed by "wholesale and retail, restaurants" (14.4%), "finance and insurance" (13.3%), and "service"(11.7%).
On the other hand, a high percentage of closed establishments is seen in "wholesale and retail, restaurants" (19.4%), followed by "finance and insurance" (18.1%) and "transport and communications" (17.8%).

Figure3  Percentage of New Establishments and Percentage of Closed Establishments by Major Industry Group (1999)

Figure  Percentage of New Establishments and Percentage of Closed Establishments by Major Industry Group (1999)

4 Percentage of corporate establishments continues to grow

A comparison of the number of establishments by type of legal organization with 1996 figures indicates a sharp fall of 247,000 individual proprietorships (down 7.1%) and a moderate decline of 69,000 corporate establishments (down 2.3%).
Owing to the high rate of decline in individual proprietorships, the percentage of such establishments continues to fall while the percentage of corporate establishments continues to expand.
The number of corporate establishments is rising in "service" (up 1.1%) and "transport and communications" (up 0.3%).

Figure4  Composition Ratio of Establishments by Type of Legal Organization (1981, 1991, 1999)

Figure  Composition Ratio of Number of Private Establishments by Management Structure (1981, 1991, 1999)

Figure5  Growth Rate of Increase in Number of Corporate Establishments by Major Industry Group (1996-1999)

Figure  Growth Rate of Number of Corporate Establishments by Major Industry Group (1996-1999)

5 In "service", establishments with "30 persons or more" are increasing

A comparison of the number of establishments by size of persons engaged with 1996 figures indicates a 4-6% decline in all segments. In particular, establishments with "1-4 persons" sharply decreased by179,000 establishments (down 4.4%) while establishments with "5-9 persons" decreased at a high rate of 6.1% (down 75,000 establishments).
A look at the number of establishments by workforce for each major industry group shows an increase in the 1% range in establishments with "1-4 persons" and with "5-9 persons" for "transport and communications" and an increase of 0.5% in establishments with "20-29 persons" for "wholesale and retail, restaurants". Meanwhile, establishments with "30 persons or more" rose 3.1% for "service".

General Situation of Persons Engaged

1 The number of persons engaged stands at 53,807,000, lower than that of the previous survey

The number of persons engaged in private establishments in Japan comes to 53,807,000 as of July 1, 1999, a decrease of 3,776,000 (down 6.6%) from 1996. This represents a 2.4% decline on an annual basis.
Compared with 1996 figures, the number of persons engaged by major industry group took a downturn in all industries. In particular, the rate of decline was large in "finance and insurance" (down 12.1%),"construction" (down 11.9%) and "manufacturing" (down 11.4%).
The number of persons engaged per establishment stood at 8.7, almost unchanged from the level of 1996 (8.8).

Figure6 Trends in Number of Persons Engaged in Private Establishments (1963-1999)

Figure Trends

Figure7  Trends in Number of Persons Engaged per Establishment (1963-1999)

Figure  Trends in Number of Persons Engaged per Establishment (1963-1999)

2 Surge in number of dispatched subcontract employees seen in "construction"

There are 2,363,000 employees dispatched from separately managed establishments or subcontractors (hereinafter"dispatched subcontract employees"), an increase of 446,000 (up 23.3%) from 1996. Compared with 1996 figures, the number of dispatched subcontract employees by major industry group grew substantially in "construction" (up 60.8%), "manufacturing" (up 25.6%), and "service" (up 25.0%).

General Situation of Incorporated Enterprises

1 The number of incorporated enterprises stands at 1,668,000, lower than that of the previous survey

The number of incorporated enterprises in Japan stands at 1,668,000 as of July 1, 1999, down 7,000 or 0.4% from 1996. This represents a 0.1% decrease per annum.

Figure8 Trends in Number of Incorporated Enterprises (1973-1999)

Figure

2 The number of incorporated enterprises in "service" is rising

Compared with 1996 figures, the number of incorporated enterprises by major industrial groups fell 12,000 enterprises (down 3.7%) in "manufacturing" and 4,000 enterprises (down 0.7%) in "wholesale and retail, restaurants". Meanwhile, the number of incorporated enterprises rose 11,000 enterprises (up 4.4%) in "service" and 1,000 enterprises (up 2.2%) in "transport and communications".

3 Joint-stock companies are decreasing while limited companies are increasing

A comparison of the number of incorporated enterprises by type of legal organization with that of 1996 indicates a sharp contrast, that is, a decline in joint-stock companies (16,000 enterprises, down 2.0%) and an increase in limited companies (11,000 enterprises, up 1.3%).

4 Joint-stock companies with "300 persons or more" are growing rapidly

An exmaination of the composition ratio by type of legal organization for each segment of regular employment shows that limited companies account for the majority of incorporated enterprises in each group with "less than 10 persons". However, joint-stock companies make up more than 60% of company enterprises with "10-19 persons". The ratio of joint-stock companies rises as the employment size becomes larger.
Compared with the results of 1996, joint-stock companies with"less than 300 persons" dropped (down 2.1%) while those with "300 persons or more" grew (up 7.0%). On the other hand, limited companies increased in all segments other than "10-19 persons".

Figure9  Composition Ratio of Number of Incorporated Enterprises by Regular Employment Size (1999)

Figure  Composition Ratio of Number of Company Enterprises by Full-time Employment Size (1999)

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