Activity of enterprises

Glossary of statistical terms

1. Entrepreneurship as independent, proactive, systematic, one’s own risk economic activity carried out by business entities to achieve economic and social benefits and profit. 2. Business entities participants of economic relationships that carry out economic activity, exercising their economic competence (the integrity of economic rights and obligations), have separate property and suffer liability by their obligations within this property, except for cases, envisaged by the law. Enterprises – depending on a number of employees and the volume of annual revenue may be classified as small (micro), medium-sized or big enterprises, in accordance with the Commercial Code of Ukraine 22 March 2012. 3. Small sized enterprises are economic entities of any form of legal entity's incorporation and ownership, where the average number of employees for the reporting period (calendar year) does not exceed 50 persons and the annual income from any activity does not exceed the equivalent of 10 million euro, determined by the average annual rate of the National Bank of Ukraine 4. Enterprise (legal entity) (here and thereafter enterprise) independent business entity set up by a competent state authority or local government, or other parties for the purpose of satisfaction of public or personal needs through regular production, academic and research, trade, and other activity in keeping with the procedure established by the Commercial Code and other laws. An enterprise not have other incorporated legal entities but shall be entitled to set up their affiliates (divisions), representative offices without establishing a legal entity. 5. Individual entrepreneurs a natural person registered under a stated order with the purpose to realize an entrepreneurial activity. 6. Principal activity activity which contributes most to the total value added of the entity under consideration. The principal activity so identified does not necessarily account for 50% or more of the entity's total value added. In practice due hard to calculate value added at each enterprise by type of activity using the following indicators: value sold production, the average number of employees and labour cost, by each type of activity 7. Number of hired workers (employees) include average number of on a full-time basis and self-employed (working under civil contracts and on a external part-time basis) employees of the enterprise. 8. Number of employed workers is determined taking into account regular, self-employed and unpaid (owners, founders of the company and their family members) employees of the enterprise 9. Volume of products (goods, services) sold is determined by the sale price of the shipped finished products (goods, services), which is stated in the executed documents as the basis for settlement (charges) with the buyers (customers) (including products (goods, services) under a barter contract) excluding VAT. 10. Financial result before tax (profit, loss) is defined as an algebraic sum of profit (loss) from operating activities, financial and other income (profits), financial and other expenses (losses 11. Personnel costs consist of: -payroll costs, which includes amounts credited salaries and wages, bonuses and motivational and compensation payment, vacation payments and remuneration for time not worked, and other payroll-related expenses - withholding for social measures, which includes sum of unified contribution to compulsory state social insurance ( pension, unemployment, temporary disability and accidents at workplace insurance contributions) accrued on the employees’ wages paid by the employer. 12. Profitability level of operating activities is calculated as a ratio of financial results of operating activities to operating activities costs of enterprises.