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BUSINESS DYNAMICS STATISTICS:
 An Overview
 January 2009
 John HaltiwangerUniversity of MarylandRon JarminU.S. Bureau of the Census Javier MirandaU.S. Bureau of the Census
 
Business Dynamics Statistics: An Overview
“The fundamental impulse that keepsthe capital engine in motion comesfrom the new consumers’goods,the new methods of productionand transportation,thenew markets …[The process] incessantlyrevolutionizes from within,incessantly destroying the old one,incessantly creating a new one.This process of Creative Destructionis the essential factof capitalism.”
– Joseph Schumpeter
©2008 by the Ewing Marion Kauffman Foundation. All rights reserved.
 
Business Dynamics Statistics: An Overview
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TABLE OF CONTENTS
General Explanation...............................................................................................................................1
Introduction............................................................................................................................................2Sources of Data......................................................................................................................................2Coverage, Scope, and Key Definitions....................................................................................................3Table 1. BDS Industrial Scope and Coverage, and Definitions of Key Data Items.............................3Establishments and Firms........................................................................................................................4Concepts and Methodology....................................................................................................................4Firm Size and Firm Age Measurement....................................................................................................6Comparability with Other Data..............................................................................................................7Figure 1. CBP vs. BDS Employment by Year.....................................................................................7Figure 2. Establishment Entry and Exit, Employment Weighted: BDS vs. SUSB by Year.....................8Reliability of the Data...................................................................................................................................8
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