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Explanation of Terms of the 1999 Survey

Establishment

An establishment is defined, as a general rule, the following prerequisites are satisfied;

  1. The economic activity is carried out under a single entity of management at one location, occupying a demarcated area.
  2. The production or supply of goods or services is done on a continuing basis with the help of persons and equipment.

Type of legal organization

Individual proprietorship


This is an organizational state of an establishment owned and managed by an individual. It includes an establishment under the joint management of individuals which is not incorpo-rated.

Company


This represents a Joint-stock company, a limited company, a limited and unlimited liability partnership, a mutual insurance company and a foreign company. A foreign company is a prin-cipal branch office or a sales office of a company which was founded in a foreign country, which was registered according to the prescription in the Commercial Law. A company with capital participation by a foreign company is not regarded as a foreign company.

Others


The generic term for Corporation excluding company and Unincorporated association is Others.

Corporation excluding company

This is an organizational state of a incorporated establishment excluding any company, such as a public corporation and a foundation.

Unincorporated association

This is an association which is not legally incorporated.

Capital


This is amount of capital as to a Joint-stock company and a limited company, amount of in-vestment as to a limited and unlimited liability partnership, or amount of fund as to a mutual insurance company.

Opening year


This is defined as the year when the establishment opened the business at the current location, made a drastic conversion to the other type of business, or changed the type of legal organization.

Type of opening

Established

An establishment which newly started a business and the following are applicable to this category. 

  1. In case of an establishment by individual proprietorship, a management right transfers to a person except an heir and a manager changes .
  2. Two or more establishments are merged to equal as a new company.

Separated from other enterprise or association

An establishment which became independent as the result of being given a goodwill of a shop by the storekeeper and an establishment which was separated from other enterprise as a sub-sidiary company is applicable to this category.

Converted from other business or activity

An establishment which made a drastic conversion to the other type of business, for instance, from a laundry to a photographic studio, is applicable to this category.

Opened as a branch

An establishment which was opened as a branch office under the control of the head office in other location is applicable to this category.

Persons engaged


Persons engaged includes all persons who are engaged in the business of the establishment as of the date of the Survey (The First Survey is 1 July 1989, the Second Survey is 1 November 1994, the Third Survey is 15 November 1999.), that is, dispatched persons to other organizations are also applicable to this category. Therefore, persons who don't receive payment (including payment in kind) from the establishment, as dispatched persons from other organizations, are excluded from Persons engaged.
Family workers in the establishment of the individual proprietorship are treated as persons engaged, even if they are not paid wages and salaries.

Employment status

Individual proprietors


Individual proprietors are proprietors of establishments who own and manage the business on their own account, and are not nominal owners.

Unpaid family workers


Unpaid family workers are family members of individual proprietors who are working for the family business without wages and salaries. Family members who work and get as much in-come as employees are treated as regular employees or temporary employees.

Employees


The generic term for Salaried directors, Regular employees and Temporary employees is Employees.

Salaried directors


This category mean salaried managers or directors of corporations or associations irre-spective of the fact whether they are full-time or part-time workers.
However, directors or managers who are concurrently regular employees and receive payment on the same payroll scheme as regular employees are excluded from this category and are classified as regular employees.

Regular employees


Regular employees are employees engaged regularly in the business of establishments. Temporary workers are generally excluded from this category, but they are included, if they are on a contract of more than one month, or if they are employed for 18 days or more in each of the past two months.

Part-timers and so on


Those who are called such as "part-timer", "arubaito" or the like at their places of regular employees are classified this category.

Temporary employees

Temporary employees are persons other than regular employees, who are on a contract not exceeding one month or who are employed on a daily basis.

Income (annual)


This is annual income (the accounts of the one year to from November 1998 October 1999), that is, the total income from all operations of the establishment (actual income including expenses, wages and salaries and also consumption tax). Those income such as interest, dividend, income by the sales of land or buildings, and borrowings are excluded.
In case of a public corporation and so on (Corporation excluding company and Unincorpo-rated association), income that the establishment got by business or activity, income that the es-tablishment continues business (donations, contributions, subsidies and membership fees) are applicable to this category. And donations and offerings to temples or shrines are also applicable to this category.

Industry


As a general rule, establishments are classified in accordance with minor groups of the "Stan-dard Industrial Classification for Japan". Some of them, however, are further divided into Indus-tries (minor groups).

Profit Industries


Kind of industries included the following medium groups which fall under the major group "L-service" of the Standard Industrial Classification for Japan. 72-Laundry, beauty and bath services
73-Automobile parking
74-Miscellaneous domestic and personal services
Note: However, the following industries in the minor groups were to be excluded from the medium group.
741-Domestic services, resident
742-Domestic services, non-resident
75-Hotels, boarding house and other lodging places
76-Amusement and recreation services, except motion picture and video production.
77-Automobile repair services
78-Machine, upholstery, furniture, etc., repair services, except otherwise classified
79-Goods rental and leasing
80-Motion picture and video production
81-Broadcasting
82-Information services and research
83-Advertising
84-Professional services, n.e.c.
86-Miscellaneous business services
87-Waste treatment services

Primary industry and Secondary industry

Primary industry

The decision of the Primary industries is as follows. If the business or activity under a single grouping of the classification is executed within one establishment, the business or activity is to be taken as the industry of that establishment. If the businesses or activities under two or more different groupings of the classification are performed by one establishment, the industry of the establishment is decided by its main business or activity (the largest value of income in the last one year).

Secondary industry

Secondary industry refers to industries other than the primary industry of the establishment which executes two or more businesses or activities.  

Other parties that establishments got income

It is classified into as follows.

Individuals (general consumers)

It means that income are gained from general consumers.

Enterprises and associations

It means that income are gained from enterprises and associations. And it also includes that income are gained from the dealings between establishments under the control of the same management, such as dealings between head office and branch office.

Government offices

It also includes income of subsidy .etc from Government offices.

Expenses (annual)

It refers to the expenses which are required for operating a business, that is, first cost, tax and public dues, water, electricity and fuel expenses, traveling expenses, communication expenses, real estate and other rents, advertising costs, repairing costs, the cost of expendable supplies, in-surance against loss, depreciation expenses, welfare expenses and entertainment expenses.  

Wages and salaries (annual)

It is defined as the before-tax wages and salaries (including income tax and social insurance premium) to Employees containing Salaried directors.

Equipment investment (annual)

It is defined as the expenses paid out for the plant or equipment with more than one year of durability and more than ¥100,000 purchase price (however more than ¥200,000 about things purchased before 31 December 1998). The expenses for acquiring, or improving and reclaiming land are excluded.


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