06 / 20 Principal activity and secondary activities

What is a secondary activity?

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Statistical classification only

Statistical classification only. This guide does not determine any reader's code. Confirm a code with the national statistical institute or the business register that holds the record. This is general information, not advice on any reader's registration.

A secondary activity is any other activity of a unit, besides the principal activity, whose outputs are goods or services suitable for delivery to third parties. Eurostat states the definition in paragraph 60 of the introductory guidelines. A unit may perform multiple secondary activities. The label is statistical only. It does not determine a code for a specific reader, and it does not decide any question about tax, licensing or eligibility.

How is a secondary activity defined?

Paragraph 60 gives a short definition with two tests. First, the activity is not the principal activity. Second, its outputs are suitable for delivery to third parties. Both tests matter. An activity that only serves the unit itself fails the second test, and belongs with ancillary activities, which are covered in a separate guide. An activity that produces goods or services for sale, for stock for future sale, or for further processing passes the second test in the terms of paragraph 61, which describes principal and secondary products together.

The definition is deliberately open about number. A unit may be performing multiple secondary activities, in the words of paragraph 60. There is no stated limit of one secondary activity, and no ranking among secondary activities is given in the definition itself. Ranking enters only through the principal activity rule: the activity contributing most to value added is principal, and the rest, if they meet the delivery test, are secondary. The classification of the unit follows the principal activity alone.

What distinguishes a secondary activity from a principal activity?

The distinction is one of share, not of kind. Paragraph 61 states that principal and secondary activities produce for sale on the market or for other uses that are not defined in advance, for example stocking for future sale or for further processing. The same paragraph contrasts ancillary activities, which are undertaken solely to facilitate the principal or secondary activities by providing goods or services for the use of that unit only. A secondary activity and a principal activity therefore share the same outward character. They differ only in that the principal activity contributes most to total value added.

That shared character has a practical consequence for reading statistics. A unit counted under one class for its principal activity may still carry on substantial secondary activities in other classes. Paragraph 68 states that all activities are considered when the principal activity is determined, but only the principal activity is used to classify a unit. A count of units by class therefore counts units by principal activity, not by every activity carried on. A reader who needs the full activity profile of a unit needs more than the single classifying code.

How is a secondary activity shown in the manual?

| Term | Manual test | Result for the unit |

|---|---|

| Principal activity | Contributes most to total value added | Supplies the classifying code |

| Secondary activity | Other activity, outputs suitable for third parties | Recorded as an activity, not the classifying code |

| Ancillary activity | Serves only the unit itself | Classified with the principal activity |

The table summarises paragraphs 59 to 61. The ancillary row anticipates the next guide: ancillary activities are not given a separate classifying code, because their output is not supplied to third parties. The secondary row is the subject of this guide. Its outputs are suitable for delivery to third parties, which is why a secondary activity is recognised as an activity in its own right, even though it does not supply the unit’s single classifying code.

What does this classification not decide?

The limit matters because the same activity words appear in many different registers and forms. The classification gives the activity a statistical place. It does not give the unit a right, a rate or a status. Eurostat gives two limits: the legislation applies only to the use of the classification for statistical purposes, and member states are not obliged to collect, publish or supply data. A principal activity label therefore cannot be quoted as proof of eligibility for a scheme, a licence or an agreement. A separate step, taken with the institute or register named at the end of this guide, confirms the entry held for a specific unit.

Where is the entry confirmed?

The manual paragraphs cited in the sources come first, the explanatory note for the category in question comes next, and the institute or register holding the entry comes last in checking this subject. Each step answers a different question, and the last step is the only one that answers a question about a specific unit.

Name the activity that contributes most, list the other activities whose outputs reach third parties, and confirm the recorded entry with the institute or register that holds it.

Sources

  1. Eurostat: NACE Rev. 2.1 manual, introductory guidelines and explanatory notes
  2. Eurostat: Glossary, principal activity
  3. Eurostat: NACE overview