Methodology and Quality update

Methodology and Quality last update

21/12/2023

Statistical Presentation

Data description

The importance of statistics for small, medium, and micro-establishments lies in providing data about the business sector. The statistical publication on small, medium, and micro-establishments presents statistical indicators on the economic activities of these establishments, including the number of employees, their compensation, expenses, and operational revenues. Additionally, it highlights the composition of fixed capital to showcase the economic growth of the Kingdom of Saudi Arabia. This is achieved by providing precise statistical indicators and opinion surveys that are high-precision, comprehensive, and meet the demands of international, national, and local organizations.
The survey of small, medium, and micro-establishment statistics is conducted to gather data on key characteristics as follows:
•    Assessing the structure of the business sector for small, medium, and micro-establishments in the Kingdom of Saudi Arabia. 
•    Providing data on economic activities based on the size of these establishments to compile indicators that help understand growth rates for each economic activity. 
•    Identifying the contribution of each activity to economic development. 
•    Understanding the relative importance of each economic activity and sector.
The key targeted indicators:
•    Economic activity and the size of the establishments. 
•    Operating expenses by economic activity and the size of the establishments. 
•    Operational revenues by economic activity and the size of the establishments. 
•    Operating surplus by economic activity and the size of the establishments.

Classification system

The following classifications are applied in the survey of small, medium, and micro-establishment statistics:
National classification of economic activities (ISIC4):
The statistical classification based on the International Standard of Industrial Classification of All Economic Activities (ISIC4) is used to describe productive activities of an establishment.
The classifications are available on the General Authority for Statistics website:
www.stats.gov.sa
The Saudi Classification of Products and Services is based on the Central Product Classification (CPC2.1):
The Saudi Classification of Products and Services, based on the Central Product Classification (CPC2.1) issued by the United Nations Statistical Commission and published in 2018, constitutes a comprehensive classification for products, including goods. The purpose of this classification is to serve as an international standard for the collection and tabulation of all types of data requiring product details. This encompasses industrial production, national accounts, service industries, local and international trade in commodities, international trade in services, balance of payments, consumption, and price statistics. Other key purposes include providing a framework for international comparisons and fostering coordination among various types of statistics related to goods and services.

Sector coverage

The survey covers all economic activities (ISIC4):
The classification of establishment size is divided into three categories based on the size of the establishment as follows:
•    Micro:
It includes all establishments with (1-5) employees.
•    Small:
It includes all establishments with (6-49) employees.
•    Medium:
It includes all establishments with (50-249) employees.

Statistical concepts and definitions

Terminologies and concepts of survey of small, medium, and micro-establishment statistics:
•    Establishment:
An economic business unit with a legal character, and with (a business registry), where it practices a particular economic activity. It is owned by an individual, a group of individuals, a company, a semi-government sector or an institution. 
•    Economic Activity:
It refers to all the activities or services practiced or provided by the establishment. It might be profitable, or non-profitable (as is the case with charities which depend upon donations.). In the case of multiple economic activities for a single establishment, the economic activity with the highest revenue is selected. Classification of the economic activity of the establishments relies on International Standard Industrial Classification (ISIC REV.4). The structural classification of business activities is based on the International Standard Industrial Classification (ISIC).
•    Operation Revenues:
They are the cash revenues achieved due to the establishment engagement in its main activity or other secondary activities, such as the sale and marketing of its products, the provision of services to consumers or the trade in goods generally. They include also other operation revenues not related to the main economic activity of the establishment, but related to the secondary activities of the establishment, including the industrial services revenues, the secondary activities revenues and the proceedings generated from the sale of production waste as well as the lease of buildings, non-agricultural lands, machinery, and equipment. And any other operating revenues, specifying the types of those revenues.
•    A-Commodity requirements:
The values of all local and imported goods supplies used by the establishment either in productive goods installation (such as raw materials), or the goods required for their production. They also include the values of stationery, spare parts, fuel, oils, electricity, and water consumption costs ... etc., or any other goods supplies with mentioning the types of such goods for necessity.
•    Service requirements:
The values of all service requirements that the establishment uses including post office and telephone costs, training and secondment costs, travel costs, machines and equipment rent costs, premises, and non-agricultural lands rent costs, and what the establishment pays for legal consultations or for services provided by others ... etc., or any other service requirements with mentioning the types of such services for necessity.
•    Workers' remunerations:
They are the due regular amounts paid by the establishment to its workers throughout the year, such as wages and salaries payable in consideration of the normal working hours, fixed bonuses together with all benefits and allowances, e.g., accommodation and social insurance, insurance, transportation allowances, etc.
•    Formation of Fixed Capital:
It is the flows in fixed assets that indicate the movement of assets within and outside the organization. It includes the fixed assets owned by the organization for use in achieving its objectives, not to sell them or use them as raw materials in its production operations (such as residential and non-residential buildings, transportation equipment, furniture, machinery, and equipment).

Statistical unit

The statistical unit in the survey of small, medium, and micro-establishment statistics is the establishment.

Statistical population

The targeted statistical community in the publication of small, medium, and micro-establishment statistics consists of all economic establishments that have business records in government entities in the Kingdom of Saudi Arabia.

Reference area

The survey of small, medium, and micro-establishment statistics covers all (13) administrative regions of the Kingdom of Saudi Arabia (Riyadh, Makkah, Al-Madinah, Al-Qassim, Eastern Province, Asir, Tabuk, Hail, Northern Borders, Jazan, Najran, Al-Baha, Al-Jouf).

Time coverage

Data are available from 2019 to 2022.

Base period

Not applicable. 

Unit of measure

Most of the results consist of numerical values, and the input category is in thousands of Saudi Riyals (e.g., operating revenues in thousands).

Reference period

Data for the survey of small, medium, and micro-establishment statistics is collected during the specified time by reaching out to establishments through the targeted survey sample and completing the survey form. Survey data is typically assigned to the previous fiscal year for the period of its implementation.

Confidentiality 

Confidentiality - policy

According to the Royal Decree No. 23 dated 07-12-1397, data must always be kept confidential, and must be used by GASTAT only for statistical purposes.
Therefore, the data are protected in the data servers of the Authority.

Confidentiality - data treatment

Data were displayed in appropriate tables to facilitate its summarization, comprehension, and results extraction. Also, to compare data with other data and extract statistical meanings for the study community. It is also easier to check tables without the need to see the original questionnaire, which usually include data like names and addresses of individuals, names of data providers, which violates data confidentiality of statistical data.
“Anonymity of data” is one of the most important procedures. To keep data confidential,
GASTAT removed information on individual persons, households, or business entities such a way that the respondent cannot be identified either directly (by name, address, contact number, identity number etc.) or indirectly (by combining different - especially rare - characteristics of respondents: age, occupation, education etc.).

Release policy

Release calendar

The survey of small, medium, and micro-establishment statistics results is bound by a release calendar.

Release calendar access

Available on the:  https://www.stats.gov.sa/en/future-releases

User access

One of GASTAT’s objectives is to meet better its clients' needs, so it immediately provides them with the bulletin’s results once the survey of small, medium, and micro-establishment statistics publication is published.
It also receives questions and inquiries of the clients about the Bulletin and its results through various communication channels, such as:
•    GASTAT’s official website: www.stats.gov.sa
•    GASTAT’s official e-mail address:  info@stats.gov.sa
•    Client Support’s e-mail address: cs@stats.gov.sa
•    Official visits to GASTAT’s official head office in Riyadh or one of its branches in Saudi Arabia.
•    Official letters.
•    Statistical telephone (92002008).

Frequency of dissemination

 Annual.

Accessibility and clarity

News release

The announcements for each publication are available on release calendar as mentioned in 7.2. Release calendar access. The news release can be viewed on the website of GASTAT in the link:  https://www.stats.gov.sa/en/news

Publications

GASTAT issues survey of small, medium, and micro-establishment statistics publications and reports on a regular basis within a pre-prepared publishing plan and installed on the GASTAT’s website. GASTAT is keen to publish its publications in a manner that serves all users of different types, including publications in different formats that contain (publication tables, data graphs, indicators, methodology and quality report, and used questionnaires) in both English and Arabic.
The survey of small, medium, and micro-establishment statistics publications is available on the link: 
Survey of Small and Medium-sized Enterprises | General Authority for Statistics (stats.gov.sa)

On-line database

The data is published in the statistical database on the link: GASTAT (stats.gov.sa)

Micro-data access 

Not applicable.

Other

Not available.

Documentation on methodology

Survey of small, medium, and micro-establishment statistics: concepts, definitions, issues, and classifications are based on international standards:
•    European Statistical System Handbook on Quality and Descriptive Data, European Union Statistical Office: https://ec.europa.eu/eurostat/web/european-statistical-system/news
•    National Accounts System 2008:
https://www.stats.gov.sa/ar/1467
•    United Nations Statistics Division (UNSD):
https://unstats.un.org/UNSDWebsite

Quality documentation

Quality documentation covers documentation on methods and standards for assessing, measuring, and monitoring the quality of statistical process and output. It is based on standard quality criteria such as relevance, accuracy and reliability, timeliness and punctuality, accessibility and clarity, comparability, and coherence.

Quality management

Quality assurance

GASTAT declares that it considers the following principles: impartiality, user orientated, quality of processes and output, effectiveness of statistical processes, reducing the workload for respondents. 
Quality controls and validation of data are actions carried out throughout the process in different stages such as the data input and data collection and other final controls.

Quality assessment

GASTAT performs all statistical activities according to a national model (Generic Statistical Business Process Model – GSBPM). According to the GSBPM, the final phase of statistical activities is overall evaluation using information gathered in each phase or sub-process. This information is used to prepare the evaluation report which outlines all the quality issues related to the specific statistical activity and serves as input for improvement actions.

Relevance 

User needs 

Internal GASTAT’s users, which make use of survey of small, medium, and micro-establishment statistics data, include:
National accounts.
External users who make significant use of survey of small, medium, and micro-establishment statistics data include, but is not limited to:
•    Governmental entities.
•    Regional and International Organizations.
•    Research institutions.
•    Private Sector.
The disseminated key variables that mostly used by key users:
•    Operating Revenues.
•    Employee Compensation.
•    Operating Expenses.

User satisfaction

Not available.

Completeness 

Survey of small, medium, and micro-establishment statistics data is based on 
Two main sources: The first is administrative record data from government entities. The second source is data collected through field surveys of establishments to provide comprehensive information on the indicators of small, medium, and micro-establishment statistics. The data status is complete.

Accuracy and reliability 

Overall accuracy

•    The data collected is improved through the researchers, that have been selected according to a set of practical and objective criteria and training program related to the field of work.
•    The electronic data collection form of the survey of small, medium, and micro-establishment statistics questionnaire includes.
•    Alert, prevention rules and correction rules during the data collection process to improve data quality. 
•    The data is checked with previous years to identify any significant changes in the data. The internal consistency of the data is checked before it is finalized.
•    The links between variables are checked and coherence between different data series is confirmed. 

Timeliness and punctuality 

Timeliness 

GASTAT uses the Special Data Dissemination Standard (SDDS) issued by the International Monetary Fund. According to this Standard, all statistics agencies are required to publish data on an annual basis, and with a delay not exceeding half a year (180 days). after the end of the reference period. If the data are from different source, they may be published in a different frequency.

Punctuality

Publication takes place in accordance with published release dates for survey of small, medium, and micro-establishment statistics in the GASTAT webpage.
The data are available at the expected time, as scheduled the release calendar, If the publication delayed the reasons would be provided. 

Coherence and comparability

Comparability - geographical

Data are fully comparable.

Comparability - over time 

The survey started in 2019 as annual survey, Major changes in recent years:
In 2019, the General Authority for Statistics transitioned to administrative records to build and update the statistical business register in accordance with international practices, ensuring the periodic update of statistical frameworks on an annual basis.

Coherence- cross domain 

Not applicable. 

Coherence - sub annual and annual statistics 

Not applicable. 

Coherence- National Accounts 

Not applicable. 

Coherence - internal 

Survey of small, medium, and micro-establishment statistics estimates for a given reference period have full internal coherence, as they are all based on the same corpus of microdata.

Resources used 

Data revision

Data revision - policy

Not applicable, only results will be published.

Data revision - practice

Not applicable, only results will be published.

Statistical processing

Source data

The publication of small, medium, and micro-establishment statistics relies on two main sources:
First source: The survey of small, medium, and micro-establishments conducted annually by the General Authority for Statistics.
The disseminated key variables of survey of small, medium, and micro-establishment statistics data are: 
•    Operating Revenues.
•    Operating Expenses.
•    Employee Compensation.
•    Operating Surplus.
Second source: is administrative records: 
•    General Organization for Social Insurance.
•    The Ministry of Commerce.
•    The Ministry of Human Resources and Social Development.
The 2022 AD business framework was used. It constitutes a basic framework for this survey and other economic research that the Authority will conduct in the future, through which all establishments are classified according to economic activity and the size of the establishment at the level of the Kingdom and administrative regions, and the activities of these establishments are classified according to the national classification of economic activities. (ISIC-4).

Frequency of data collection 

Annual.

Data collection

Data collection from survey:
The survey of small, medium, and micro-establishment statistics data collection is carried out through Computer-assisted telephone interviewing (CATI), Computer-assisted web interviewing (CAWI) and Computer-Assisted Personal Interviews (CAPI). 
Data collection from administrative records:
In coordination with GASTAT’s departments related to the implementation of the survey and the data acquisition department, the survey of small, medium, and micro-establishment statistics publication data obtained from the General Organization for Social Insurance, the Ministry of Commerce and the Ministry of Human Resources and Social Development, which include data on the number of employees, commercial registration, and economic activities. 
The data were saved on GASTAT's databases, data have been audited and reviewed according to the statistical method and recognized quality standards, in case of defect quality issues or errors in the data we refer to data source.

Data validation

Data are reviewed and matched to ensure their accuracy and precision in a way that suits their nature with the aim of giving the presented statistics quality and accuracy.
The data of the publication's current year are compared with the data of the previous year to ensure their integrity and consistency in preparation for processing data and extracting and reviewing results.
In addition to the data processing and tabulation to check their accuracy, all the outputs are stored and uploaded to the database after being calculated by GASTAT to be reviewed and processed by specialists in Business, Investment, and International Trade Department through modern technologies and software designed for this purpose.

Data compilation

Data Coding:
In the survey of small, medium, and micro-establishment statistics, interviewers collect from respondents, a detailed description of each field. This information is then coded in-house by an automated process, which is reviewed by a small-dedicated team of coding experts using a series of consistency checks.
Data Editing:
Specialists of Business, Investment, and International Trade Department have processed and analyzed data in this stage, and this step was based on the following measures:
•    Sort and arrange data in groups or different categories in a serial order.
•    Summarize detailed data into main points or main data.
•    Link between many parts of data and make them connected.
•    Process incomplete or missing data.
•    Process illogical data.
•    Convert data into statistically significant data.
•    Organize, display, and interpret data.
Imputation (for Non-Response or Incomplete Data Sets):
The approach followed for compensating in the survey of Small and Medium-sized Establishments (SMEs), whether for establishments with complete non-response or missing data for specific variables, involves allowing for re-interviews to obtain data from missing respondents or non-response cases. Afterward, dealing with the missing data or non-response is done by evaluating it to follow a scientific methodology for estimating results through several considerations, including a historical dataset and an acceptable range of missing data, and estimates based on class data.
Extrapolation and weighting:
After processing the data collected from the responding establishments, survey weights were generated to produce indicator tables by following two main steps in creating survey weights:
•    Adjustment of non-response.
•    Calibration weight.
Applied statistical estimation: 
GASTAT has relied on the formulas approved by the international standards in calculating survey of small, medium, and micro-establishment statistics indicators, as follows:
-    Operating Surplus = Operating Revenue - Operating Expenses - Employee Compensation.

Adjustment

Not applicable, only results will be published.