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1. What is the Economic Census?

The Economic Census collects and produces our Nation's most useful business statistics. It collects information about virtually every U.S. business, summarizes it for each industry and geographic area, and publishes our most complete and accurate business statistics. The Census Bureau conducts an Economic Census every 5 years.

• Virtually every business. The Economic Census includes all U.S. business activities except agriculture, government, most education, and some specialized activities (such as railroad, labor organization and religious activities). It excludes private household activities.
  
  
• Useful business statistics. Census statistics describe the structure and functioning of our Nation's economy, and illuminate hundreds of different industries and thousands of geographic areas. These data are relied on for sound business plans, effective economic development, and accurate economic indicator statistics.
  
  
• Available periodically. Census statistics provide reliable and comprehensive measures of our Nation's economy every 5 years. These are our most insightful and consistent measures of economic growth and change, including emerging industries, changes within and between industries, and local economic development.

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2. Why is this census important?

The Economic Census is important because it produces complete "snapshots" of our economy and our most widely used business statistics. Census statistics feature economy-wide coverage, exceptional accuracy, encyclopedic detail, and historic comparability. They are used in private business plans, public policy development, and statistical program quality control. Examples of users and uses include:

• Individual businesses. Small and large businesses use census statistics to develop business plans, locate facilities, define markets, assess competition, attract investment, manage sales, and evaluate efficiency.
  
  
• Business organizations. Industry professionals, economic analysts and business reporters use census statistics to assess industry growth and change, prepare economic forecasts, define legislative priorities, and produce education materials.
  
  
• Program agencies. Federal, state and local agencies use census statistics to design economic development and regulatory programs, evaluate program effects, conduct trade negotiations, and prepare revenue and spending plans.
  
  
• Statistical agencies. Federal and other statistical agencies use census statistics to validate and update key performance measures, including Federal measures of total domestic production, business productivity, and capacity utilization.

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3. Why is there a census for 2002?

Federal law requires the Census Bureau to conduct an Economic Census for calendar year 2002. This requirement is codified in the United States Code, Title 13, Chapters 1 and 5. Congress and the President adopted this law to provide the high quality statistics needed to help our Nation's growing and dynamic economy. Results for 2002 will continue and improve previous census statistics, including first-ever data on electronic commerce, leased employment, and services products.

• Required by law. Federal law requires that an Economic Census be conducted every five years, for calendar years ending in "2" and "7," and that the Census Bureau conduct this census.
  
  
• Needed statistics. The census provides statistics to profile where businesses are located and how they are organized and operate, including their employment and payroll, assets, primary physical and service inputs, and major products.
  
  
• First-ever results. New data for 2002 will include industry and geographic detail about the scope and nature of electronic commerce in the U.S., the increased use of leased instead of direct-payroll employees, and the products of service industries.

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4. Must I answer the census?

Yes. Federal law requires you to complete your Economic Census form and return it to the Census Bureau. The United States Code, Title 13, Chapter 7, establishes these requirements, applies them to business owners and employees, and authorizes penalties for those who do not cooperate. High quality census statistics, including useful profiles of each U.S. industry and locality, depend on information from each business that receives a 2002 Economic Census form.

• No exceptions. The Census Bureau has no authority to exempt or excuse individual businesses from the legal requirement to answer the Economic Census.
  
  
• No compensation. The Census Bureau has no authority or funds to reimburse, or otherwise compensate, businesses for answering the Economic Census.
  
  
• Authorized penalties. Chapter 7 authorizes fines of up to $500 per form for refusing to answer the census, and up to $10,000 for willfully providing false information.
  
  
• Statistical purpose. Penalty authority is provided to underscore census importance, encourage census cooperation and assure high quality U.S. business statistics. It is not intended to coerce businesses or produce revenue.

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5. Will my answer be confidential?

Yes. Federal law guarantees the confidentiality of information you provide on your census form. The United States Code, Title 13, Chapters 1 and 7, restricts who can see your information, limits how they can use it, and provides stiff penalties for any violations. In addition, your information is exempt from disclosure under the Freedom of Information Act and any file copies you retain are immune from legal process.

• Restricted access. Your information will be seen only by Census Bureau employees or other persons who need to see it, and who have agreed to keep it confidential. The penalty for any violation is a fine of up to $5,000, imprisonment for up to 5 years, or both.
  
  
• Limited use. Persons who are authorized access to your information can use it only for statistical purposes. They cannot use it for other purposes, use it for statistical purposes that identify you or your business, or share it with any unauthorized person.
  
  
• Anonymous publications. Census publications contain only aggregated statistics that combine information from many businesses. They do not identify individual businesses or their operations, and they are carefully reviewed to prevent unintended disclosures.

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