Industries

Description:
The industries that describe the business model of the business. Enigma provides two industry classification systems:

(1) Enigma Descriptions - human-readable descriptions of the industry the business operates in

(2) the North American Industry Classification System (NAICS) hierarchy - for which we provide both the code and category name.

Child attributes (and data file structure):

JSON Sample:

{
    "industries":
    [
      {
      "classification_type": "NAICS_2017",
      "classification_code": "2361",
      "classification_description": "Residential Building Construction",
      }
}

Coverage:

• Businesses: 76%
• Business Locations: 90%

Time structure:

• Current point in time. No historical information.

Data sources:

• Public data (e.g., corporate filings, PPP applications, etc.) where a business specifies its industry
• Online business directories where a business specifies its industry
• Information and keywords on a business’ website
• MCC codes from credit card transactions
• Third-party verification services

Methodology:

• When we have both an Enigma Description and NAICS 2017 categorization for the industry, we always provide the Enigma Description as the first object in the industries array.
• Enigma Descriptions do not have classification codes since these are human-readable descriptions rather than a rigid code classification system.
• All of the data sources listed above go into a model to determine a business’s industry.
  Enigma only tags a business with an industry code if we have greater than 85%+ confidence that the industry specification is correct.
• Enigma’s system attempts to tag the most granular NAICS code possible while maintaining high accuracy. The system starts by attempting to tag a six-digit code, but if the confidence level is less than 85%, then Enigma will try to provide five-digit granularity. If Enigma’s system does not have high enough confidence in a five-digit code, then it will move on to a four-digit code. This process continues all the way to a two-digit code.
  • As of August 2023, the breakdown of NAICs codes by granularity, given the business has an industry and revenues, is:

• A business location profile may have multiple NAICS industry codes. This is reflective that locations may have primary and secondary industries (e.g., a business can be a restaurant and can also sell packaged food).
• Business profiles, however, can only have one primary industry (which may be listed in terms of an Enigma Description and a NAICS code). This is determined by looking at the most prevalent industry across all locations associated with that business.