What is the primary economic activity of my organisation?
The primary economic activity of an organisation refers to the main source of economic value or revenue generated by the company. It is typically the activity that defines the organisation's core operations and is usually identified through industry classification frameworks, such as “NACE”.
How to Identify Your Organization's Primary Economic Activity
An organisation's primary economic activity can be identified by analysing its revenue streams, operational focus, or production outputs. If multiple activities are significant, the primary activity is typically the one that generates the highest proportion of revenue.
The following approaches can help you assess your primary economic activity:
- Revenue Analysis: Determines which activity contributes the largest portion of an organisation's total revenue.
- Operational Focus: Assesses the main focus of an organisation’s operations or the activity most critical to its value chain.
- Production Focus: Assesses the main production outputs of an organisation.
After determining what your primary economic activity is, you can classify this activity under the NACE framework. Using the appropriate NACE code for your primary economic activity ensures consistency and alignment in reporting across the EU.
For more information on NACE, Atlas Metrics also recommends reading the following FAQs:
Can an organisation have one or multiple NACE codes?
Glossary, Definitions, and Links
NACE - Nomenclature of Economic Activities. NACE is a standardised framework established by the European Union to categorise economic activities across its member states.
Link - NACE Classification (Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the Council (18) as defined in Commission Delegated Regulation (EU) 2022/1288 (19)).
Link - NACE Rev. 2 Manual (Statistical classification of economic activities in the European Community).