The European e-Business Report 2004 - Berlecon Research GmbH

The European E-Business Report 20042.5 Craft and trade sectors2.5.1 Economic profile“Craft and trade” is considered here as a group of professions in which “workers apply their specificknowledge and skills to produce or process goods” and in which “the tasks call for an understanding ofall stages of the production process, the materials and tools used and the nature and purpose of thefinal product”. 66 However, there is no European definition for craft enterprises, and crafts cover a verywide range of activities that do not constitute a marked-off sector in the General IndustrialClassification of Economic Activities within the European Communities (NACE).The e-Business W@tch applies an operational definition of craft enterprises as “firms with less than 50employees in craft-related NACE Rev. 1 business activities”. These business activities comprisemanufacturing activities in fields such as food, wood, metals and ceramics (NACE 15-37, excluding23-25), construction (NACE 45), repairs (NACE 50), transport (NACE 60), and several “other services”(NACE 90 and 93). The definition of "small" and "micro" enterprises – in this context as well as in othersectors studied – has been derived from and is in full conformity with the European SME definition. 67Exhibit 2.5-1: Configuration of the craft and trade sectors in terms of NACE Rev. 1NACE Rev. 1Division GroupsActivity17 17.1-7 Manufacture of textiles and textile products18 18.1-2 Manufacture of wearing apparel, dressing and dyeing of fur19 19.3 Manufacture of leather and leather products (footwear only)30 30.01-02 Manufacture of office machinery and computers31 31.1-2 Manufacture of electrical machinery and apparatus n.e.c.32 32.1-3 Manufacture of radio, television and communication equipment and apparatus34 34.1-3 Manufacture of motor vehicles, trailers and semi-trailers35 35.1-5 Manufacture of other transport equipment20 20.1-5 Manufacture of wood and of products of wood and cork, except furniture; manufacture ofarticles of straw and plaiting materials36 36.1 Manufacture of furniture45 45.2-4 Construction (Building of complete constructions, building installation and completion)EmploymentSmall businesses and crafts were the motor of employment in the past decade. Most crafts are rootedin the local economy and only a small percentage is engaged in international trade. Thus, crafts arealso important drivers of local and regional structural change.Craft firms account for the vast majority, commonly more than 90%, of enterprises in any country andany sector under consideration. In construction, the EU average share is even 99%. The significanceof employment in craft firms differs largely by country and sub-sector, implying differing industrystructures and market situations. Construction is the sub-sector with the highest share of craftemployment in total employment, with an EU average of 73%.Value added and productivityThe share of craft value added in total manufacturing value added tends to be lower than the share ofenterprises and people employed for most sectors. Again, the EU average percentages vary largelybetween the sub-sectors considered, showing the different levels of concentration in the sub-sector.6667See the European equivalent to the International Standard Classification of Occupations in Elias/Birch (1994).http://europa.eu.int/comm/enterprise/enterprise_policy/sme_definition/index_en.htm122