Number of Establishments

General Definition

An establishment is a single physical location at which business is conducted and/or services are provided. It is not necessarily identical with a company or enterprise, which may consist of one establishment or more. Economic census figures represent a summary of reports for individual establishments rather than companies. For cases where a census report was received, separate information was obtained for each location where business was conducted. When administrative records of other Federal agencies were used instead of a census report, no information was available on the number of locations operated. Each economic census establishment was tabulated according to the physical location at which the business was conducted. The count of establishments represents those in business at any time during 1997.

When two activities or more were carried on at a single location under a single ownership, all activities generally were grouped together as a single establishment. The entire establishment was classified on the basis of its major activity and all data for it were included in that classification. However, when distinct and separate economic activities (for which different industry classification codes were appropriate) were conducted at a single location under a single ownership, separate establishment reports for each of the different activities were obtained in the census.

Sector-Specific Information

Construction sector. Establishments are defined as a relatively permanent office or other place of business where the usual business activities related to construction are conducted. Establishments do not represent each project or construction site. Includes all establishments that were in business at any time during the year. It covers all full-year and part-year operations. Construction establishments which were inactive or idle for the entire year were not included. Establishments are based on a survey which included all large employers and a sample of the smaller ones.

Information; Professional, Scientific, and Technical Services; Administrative and Support and Waste Management and Remediation Services; Educational Services; Health Care and Social Assistance; Arts, Entertainment, and Recreation; and Other Services (Except Public Administration) sectors. An establishment is included in the census if it is an employer, the establishment has $1,000 in payroll, and was in operation at any time during 1997. Leased service departments (separately owned businesses operated as departments or concessions of other service establishments or of retail businesses, such as a separately owned shoeshine parlor in a barber shop, or a beauty shop in a department store) are treated as separate service establishments for census purposes. Leased retail departments located in service establishments (e.g., a gift shop located in a hotel) are considered separate retail establishments.

Manufacturing sector. Includes all manufacturing establishments (plants) with one employee or more and establishments in operation at any time during the year.

Mining sector. Includes all mineral establishments with one employee or more and establishments in operation at any time during the year. Establishments in the crude petroleum and natural gas and support activities for mining represent statewide operations rather than those at a single physical location.

Real Estate and Rental and Leasing sector. Data for individual properties leased or managed by property lessors or property managers are not normally considered separate establishments, but rather the permanent offices from which the properties are leased or managed are considered establishments. Data for separate automotive rental offices or concessions (e.g., airport locations) in the same metropolitan area for which a common fleet of cars is maintained are merged together and not considered as separate establishments.

Retail Trade sector. Leased departments are treated as separate establishments and are classified according to the kind of business they conduct. For example, a leased department selling shoes within a department store would be considered a separate retail establishment under the "shoe stores" classification.

Accommodation and Foodservices sector. Leased departments are treated as separate establishments and are classified according to the kind of business they conduct. For example, a leased department selling gifts/souvenirs within a hotel would be considered a separate retail establishment under the "gift, novelty, and souvenir stores" classification.

Auxiliaries sector. In the Standard Industrial Classification (SIC) system, auxiliary establishments (i.e., those establishments primarily serving other establishments of the same enterprise) were classified in the industry of the establishments served. In the North American Industry Classification System (NAICS), auxiliary establishments are classified according to the services performed rather than the industry served.