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For the first time, DREM releases monthly data on Business demography in the Autonomous Region of Madeira

The Regional Directorate of Statistics of Madeira (DREM) releases today, for the first time, a statistical report on the monthly indicators of active enterprises and births of enterprises for the Autonomous Region of Madeira (ARM), for the period from January 2018 to August 2021, with a breakdown by legal form and economic sector.

The indicators now published were compiled by Statistics Portugal (INE) based on administrative information from two sources: Information from the Monthly Statement of Remuneration (DMR) of the Social Security, corresponding to enterprises with at least one employee, and information from the E-fatura system of the Tax and Customs Authority (AT).

The criterion for defining an active enterprise may be improved in the future depending on access to additional sources of information, however, in this study, all enterprises that provided the DMR and/or information from the E-fatura system for each month were considered active. Thus, this criterion differs from the criterion based on the legal registration of the incorporation and dissolution of enterprises, as these formal moments may differ from the effective starting point or cessation of the economic activity of the enterprises.

Regarding the specific case of births, the operationalisation of the criterion considered as births those enterprises that were active in each month and had not provided information (DMR or E-fatura) in the previous two calendar years.

This study focuses on market enterprises classified in sections A through S (except O) of the Portuguese Classification of Economic Activities, revision 3 (CAE – Rev.3).

This study was made available in StatsLab - Statistics in Development. StatsLab is a section on INE's website where new statistical products are presented before they acquire their final format aiming to take advantage of new data sources and new methods.

Demografia Empresas novo EN


Number of active enterprises fell by 10% between 2019 and 2020, recovering from April 2021 onwards

In the Autonomous Region of Madeira, there were 18,819 active enterprises on a monthly average, between January 2018 and August 2021, with maximum and minimum values in December 2018 and April 2020, i.e., 20,953 and 14,890 enterprises, by the same order.

Between March and April 2020, there was the largest monthly decrease in the number of active enterprises (-3 980 enterprises, -21.1%), coinciding with the first lockdown as a result of the COVID -19 pandemic, in which many customer services were closed, and occurred mainly in individual enterprises (-3 594 enterprises, -31.9%).

Between 2019 and 2020, the average monthly number of active enterprises fell by 10.0% (-1 973 enterprises), while the decrease in the country was 6.4%.

In 2021, the largest year-on-year increases were in April and May, with a rise of 20.6% and 21.0%, respectively. In August 2021, the latest month for which records are available, 18,785 enterprises were active, an increase of 1,198 enterprises compared to the same month last year (+6.8%).

As expected, the majority of monthly active enterprises are individual enterprises, whose share remained relatively constant when comparing the beginning and the end of the series period (i.e. January 2018 and August 2021) (58.1% and 58.3%, respectively). However, the impact of the pandemic has temporarily led to a decrease in the share of individual enterprises, with the minimum being reached in April (51.5%).

In the Autonomous Region of Madeira, in the period between 2019 and 2020, the economic activities in which the average monthly number of active enterprises decreased the most were "Other service activities" (-966 enterprises; -12.5%), "Accommodation, food services and similar" (-427 enterprises; -15.0%), "Trade" (-302 enterprises; -10.3%) and "Transport and storage" (-100 enterprises; -11.9%).

The average number of monthly births between January 2018 and August 2021 was 322. The lowest value of the monthly births was reached in April 2020 with 162 enterprises, while May 2018 was the month with the highest number of monthly enterprise births (471).

The annual average of monthly birth rates, which derives from the average of the ratio between the number of births and the active population of enterprises in each month, shows a successively decreasing trend, from 1.9% in 2018, to 1.8% in 2019, to about 1.5% in 2020 and 2021. The highest rate was recorded in May 2018 (2.4%) and the lowest in April and May 2020 and February 2021 (1.1%).

About 79.4% of the monthly births were recorded in the "Trade", "Accommodation, food services and similar" and "Other services activities" sectors.

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