Out of 31,430 active enterprises in 2018, 3,547 enterprises started operations in the business economy. That year, most enterprise births were in construction, a total of 622 enterprises. In tourism industries during 2018, 466 enterprises were born in comparison to 652 enterprises in 2017 and 762 enterprises in 2016.

In 2018, the birth rate of enterprises in the total business economy was 11%. However, the birth rate of enterprises varies depending on economic activity. In 2018, the lowest birth rate was in fisheries and manufacturing, or 6%, and the highest birth rate 12% was in high technology manufacturing and services.

Enterprise means both juridical entities and natural persons that are operating under their own ID number. Enterprises that started operations in the total business economy during 2018 had over 3,500 persons employed and over 34.7 billion ISK in turnover.

Out of 3,041 enterprises that were born in 2013, 1,282 enterprises, or 42%, were still active in 2018. The highest 5-year survival rate of enterprises was in tourism industries. Out of 337 enterprises that were born in 2013, 188 enterprises, or 56%, were still active in 2018. In contrast to that, the lowest 5-year survival rate of enterprises was in the information sector, or 32%.

Turnover of enterprises in the total business economy, which began operations in 2013 and were still active in 2018, increased by almost 340% during that period. Turnover of these companies amounted close to 21 billion ISK in 2013, which increased by 69 billion ISK and amounted to 90 billion ISK in 2018. The number of persons employed in these enterprises increased by 120% from 1,659 persons employed in 2013 to 3,600 persons employed in 2018.

Methods
Business Demography Statistics are based on Eurostat and OECD harmonized methodologies. Therefore, they are comparable to statistics in other European countries. The statistics are based on tax returns of enterprises and individuals. It covers the private sector except agriculture and financial and insurance services. Public administration, health and social services, educational activities, cultural, sporting and recreational activities, as well as NGO activities, are excluded.

The statistics that are now published are for the period 2003-2018 and are broken down by industry according to ÍSAT2008.

Enterprises are considered active when they have operating income or personnel costs. When operation of enterprise moves between identification numbers, it is not considered to be an enterprise birth unless two of the following three conditions are met; operation is in another economic sector according to ÍSAT2008, operation is carried out at another location or the majority of staff has been changed. Adjustments are also made in connection with mergers and split-offs.

Enterprises newly born in t having survived to t+5 are enterprises that were active in terms of turnover and/or paid employment in any part of year t+1, t+2, t+3, t+4 and t+5 (= survival without changes). During data processing, corrections are made.

1) Transport (total); Accommodation, food and beverages; Leiga á vélknúnum ökutækjum; Renting and leasing of motor vehicles, recreational and sports goods; Travel agency, tour operator and other reservation service and related activities.
2) Manufacture of chemicals and chemical products; Manufacture of weapons and ammunition; Manufacture of computer, electronic and optical products; Manufacture of electrical equipment; Manufacture of machinery and equipment n.e.c.; Manufacture of motor vehicles, trailers and semi-trailers; Manufacture of other transport equipment; Manufacture of medical and dental instruments and supplies; Postal and courier activities; Publishing activities; Programming and broadcasting activities; Telecommunications; Computer programming, consultancy and related activities; Information service activities; Scientific research and development.

Amounts are at current prices.

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