FIN 310U Entrepreneurial Finance: Industry Analysis
Common Challenges & Research Strategies
- Issue #1: Information availability depends on the specific industry. Not every industry is covered in all databases. There may not be a report on an emerging or niche industry in any database. Reports found via Google may not be available through the Library.
- Strategy: Broaden your search (e.g., instead of the "buttons industry", find information on "clothing accessories") or look up information in related/competing industries. Think about your target customers and what else they may like to do then research that market (you will need to make some educated assumptions). Do article/Web search. Look up Form S-1 or 10K of a public company in the same industry.
- Issue #2: Different databases may call the same industry differently. Even NAICS codes can be different as they are assigned by the research firms that produced the reports/data.
- Strategy: Brainstorm synonyms, be flexible in your search, or search by company name (main players) or prominent brand names.
- Issue #3: Even on the same industry, numbers from different databases may not be the same, due to difference in scope, time period, source, or methodology.
- Strategy: Make sure you understand how a particular report defines the industry, and what the numbers mean (e.g., production vs. retail sales). Get information from a few different sources and come up with your own estimate.
- Issue #4: Most databases provide industry/market information on the national level rather than local.
- Strategy: Make educated assumptions, consult Census industry data by state, do article/Web search for info on local markets.
Benchmarking: Industry Norms and Ratios
Recommended
- RMA Statement StudiesProvides financial ratio benchmarks data (norms and ratios) and industry default probablity data. This is the online version of the RMA annual statement studies.
- Business Insights: GlobalType in industry keyword or NAICS code, select the best match under Industry Profile, scroll down to the links under Plunkett Report.
- Mergent OnlineCreate company comparison report to compare norms and ratios of a customized set of companies.
Others
- Economic Data from CensusData from the Economic Census and various business-related surveys, including Economic Census, Current Industrial Reports, Annual Survey of Manufacturers, Service Annual Survey, Statistics of U.S. Businesses, E-Commerce, Small Business, Minority/Women Business Owners, and more.
- Ibbotson Cost of Capital YearbookCost of capital and other financial norms and ratios by industry (SIC).
- IRS SOI Tax StatsStatistics on income, deductions (expenditures on equipments, rental, labor, advertising, etc.), taxes, credits, and more reported by businesses (from corporations to sole proprietorships).
- Almanac of business and industrial financial ratios(1971-2014) Print reference book: HF5681.R25 T68, Ready Reference. Organized by NAICS.
- Industry norms and key business ratios(1988-2013) Print reference book: HD9724 .I514, Ready Reference. Organized by SIC.
- RMA annual statement studies(1977-2011; current data in the database RMA eStatement Studies) Print reference book: HC101 .R6, Circulation Desk. Organized by NAICS.
Library Databases with Industry Data & Analysis
Recommended:
- MintelMaintains market research reports and consumer demographic/lifestyle profiles covering U.S. and international marketplaces.
- Passport (by Euromonitor)Contains extensive statistics and analyses on countries, industries, companies, and consumers.
- StatistaProvides statistics from over 18,000 free and proprietary sources on a wide range of topics such as business, media, and demographics.
- Business Insights: GlobalProvides company and industry profiles, including SWOT reports, market share reports, investment reports, articles, financials, and case studies.
- Business Source PremierProvides full text and citations to articles in various business publications; also includes company profiles, industry profiles, and country information.
Others:
- Investext (via Mergent Online)Analyst reports. Type "industry reports" under "Report Style" and industry keyword (e.g, artificial intelligence) under Keywords.
- Automotive News Data CenterMaintains international statistics on the automotive market including sales, production, inventory, and incentives. PSU faculty/staff/students please log in with your PSU (ODIN) ID to view username/password. Visitors please contact the Reference Desk.
- SMA: Sports Market Analytics (formerly SBRNet: Sport Business Research Network)Provides coverage of market segmentation for sporting goods, sports e-commerce, sports marketing, sports sponsorship, and sports facilities as well as articles on sports broadcasting and social media.
Classification
Industry classification systems are created to promote data comparability. NAICS (current version) and SIC (older version) are the most widely used in the United States. You can search by codes to find information on industries or sectors in many databases and government websites. However, NAICS and SIC focus on broader industry activities and may not have a specific code for niche/emerging industries. Many databases (e.g., Hoover's) also have their own classification systems.
- NAICS (North American Industry Classification System)Standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. Updated every 5 years.
- SIC (Standard Industrial Classification)Older system (doesn't cover industries that emerged after 1987).
Industry/Trade Associations
An industry association is established to advocate for the industry and associated companies. They collect and provide unique data/articles/reports. Sometimes these sources are on their websites for free.
To find the industry association websites:
- Do a Google search with keywords followed by "association".
- Industry profiles in library databases may have a section for related associations. For example, in the IBISWorld report, look under the External Environment -> Assistance -> Non-government section.
Useful Websites
- COVID-19 Economic Impact Tracker (CEIT)"Provides access to Cortera’s database of over $1.5 trillion in annual spending by millions of US businesses to help understand the ongoing COVID-19 crisis." Data available by industry and state.
- Census Business and EconomyThe Census Bureau produces economic data across the entire economy on a monthly, quarterly, yearly, and five-year basis. ** Data NOT available from the Economic Census.
- Census Business Builder"A suite of services that provide selected demographic and economic data from the Census Bureau tailored to specific types of users in a simple to access and use format."
- Proquest Statistical Abstract of the United StatesMaintains the authoritative and comprehensive summary of statistics on the social, political, and economic conditions of the United States.