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Explanation of Terms
Industrial classification
The classification is based on the Japan Standard Industrial Classification (revised in October 2013) according to the type of main business (the one with the highest revenue or sales during the previous year). Enterprises that operate more than one business are classified according to the type of business with the largest amount of revenue or sales during the previous year for the whole company, including branches.
For the correspondence between the industrial classifications in the statistical table and the Japan Standard Industrial Classification, see List of Industrial Classifications Used for Unincorporated Enterprise Survey(Excel:18 KB).
Business conditions
1 Sales
Sales refer to the sales amount realized by the sale of goods, etc. or the provision of services, operating revenue, and proceeds from completed works. This does not include income from the sale of property, including tangible fixed assets such as securities, land, buildings and machinery and equipment.
2 Cost of sales
Cost of sales refers to the figure obtained by adding current purchases to initial inventories (i.e., commodities, products and raw materials), then subtracting final inventories from this total.
3 Total operating expenses
The total operating expenses refer to the following costs involved in business activities:
Taxes and public charges (excluding income tax and resident tax, etc.), damage insurance premiums, depreciation, welfare cost, salaries and wages, cost of subcontracted works, interest and discount expenses, etc.
4 Salaries and wages
Salaries and wages refer to the total amount of compensation (compensation, bonuses, allowances, wages, etc., before deduction of income tax and insurance premiums, etc.) paid to persons engaged (including temporary employees), except family employees.
5 Net operating profit
Net operating profit refers to the amount obtained by subtracting salaries and wages and operating expenses from gross profit, which is sales minus cost of sales.
6 Investment in plant and machinery
Investment in plant and machinery refers to outlays required to buy buildings with a useful life of a year or more that are valued at 100,000 yen (or more (the residential section of the land and buildings is excluded in the case of stores with sleeping quarters)), building accessories, vehicles, machinery, tools, equipment, and fittings.
Persons engaged
1 Family workers
?Family workers? refers to family members of the business proprietor who work full-time without receiving salaries or wages. Family members who work and receive salaries or wages comparable to those of the employer are included in the "regular employees" or "temporary employees" category.
2 Regular employees
?Regular employees? refers to persons who were employed for an unspecified period of time or for a specified period exceeding one month. They include family members of the business proprietor who are paid workers.
3 Temporary employees
Temporary employees refers to persons employed for periods of less than one month or on a daily basis.
4 Total number of persons employed during last one year and total number of persons separated from their employment during last one year
This refers to the total number of "regular employees" who were hired or resigned (retired) over the course of a year (From June 1 of the previous year to May 31 of the current year).
?Regular employees? refers to persons employed for an unspecified period of time or for a specified period exceeding one month.
Other matters
1 Operation days for one year
Operation days for one year refers to operation days over the period of a year excluding regular holidays and special holidays, etc.
All days that a shop or office is open, even if there are no sales or purchases, count as operation days.
In case the company operates several businesses, the number refers to the average operating hours per day of the business establishment with the largest amount of revenue or sales.
2 Average operating hours per day
Average operating hours per day refers to the average length of operation time of a normal day when a shop or office is usually open for one year.
The time for which a shop or office is open, even if there are no sales or purchase, counts as operation time.
In case the company operates several businesses, the number refers to the operating days of the business establishment with the largest amount of revenue or sales.
3 When establishments opened
When establishments opened refers to the date business commenced at the place as of the date of the survey.
In case the company operates several business establishments, it is the date when the main business establishment opened.
4 Affiliation or otherwise with a chain organization
Chain organization refers to a franchise or voluntary chain.
5 Plans for incorporating enterprise
Plans for incorporating enterprise refers to plans for changing the status of an establishment to that of an incorporated enterprise such as a joint stock company.
