MEASURING ENTREPRENEURSHIP

OECD-EUROSTAT ENTREPRENEURSCHIP INDICATORS PROGRAMME

(EIP)

Joint UNECE/Eurostat Seminar on Business Registers

Luxembourg, 7 October 2009

Koen De Backer OECD

ENTREPRENEURSHIP INDICATORS PROGRAMME (EIP)

• Feasability study in 2005 • Started in 2006• Funding by Kauffman Foundation and Danish led

‘International Consortium on Entrepreneurship (ICE)

• Partnership with Eurostat - OECD – Eurostat EIP• Activities 2006 – 2008 (OECD Secretariat –

Eurostat – EIP Steering Group) • Cooperating with National Statistical Offices • Developing common definitions for entrepreneurship• Drawing a list of empirical indicators on entrepreneurship• Data collection

INDICATORS OF ENTREPRENEURSHIP:

EIP APPROACH (1) • Broad definitions of entrepreneurship • Importance of ‘new’ and ‘value’• Focus on business entrepreneurship

• No single measure perfectly reflects definition• Must distinguish types of entrepreneurship

• Employer vs non-employer firms• High growth firms and gazelles

Economic Growth

Determinants

Poverty Reduction

Employment-based Indicators

Other Indicators of Entrepreneurial Performance

CultureAccess to Finance

Market Conditions

Job Creation

EntrepreneurialPerformance

Impact

Regulatory Framework

R&D and Technology

Entrepreneurial Capabilities

Firm-based Indicators

Original data-collection, due to and in close cooperation with NSOs!

INDICATORS OF ENTREPRENEURSHIP:

EIP APPROACH (2)

ENTERPRISE BIRTH AND DEATH RATES (1)

ENTERPRISE BIRTH AND DEATH RATES (2)

ENTERPRISE BIRTH AND DEATH RATES (3)

ENTERPRISE BIRTH AND DEATH RATES (4)

ENTERPRISE BIRTH AND DEATH RATES (5)

ENTERPRISE BIRTH AND DEATH RATES (6)

SURVIVAL RATES – ENTRY COHORTS

HIGH GROWTH FIRMS

YOUNG HIGH GROWTH FIRMS - GAZELLES

EXTENDING THE COUNTRY COVERAGE (1)

Digest publication 2008 Digest publication 2009

18 countries 23 countries/regions

• OECD countries– large countries (Australia, France, Germany,

United Kingdom) miss out– Voluntary data collection on EU-level

• Non-OECD countries– Accession/enhanced engagement countries– Cooperation with UNCTAD

• Regions (Andalucia is testcase)

EXTENDING THE COUNTRY COVERAGE (2)

Timely indicators for the EIP

- EIP produces solid but rather late indicators- official (NSOs) and validated indicators- not timely: 2-3 years time lag

- A high demand for more timely entrepreneurship indicators:

- financial crisis; - short term, leading indicators

- Using additionally sources: administrative data- Chambres of commerce- business associations

Economic Growth

Determinants

Poverty Reduction

Employment-based Indicators

Other Indicators of Entrepreneurial Performance

CultureAccess to Finance

Market Conditions

Job Creation

EntrepreneurialPerformance

Impact

Regulatory Framework

R&D and Technology

Entrepreneurial Capabilities

Firm-based Indicators

Original data-collection, due to and in close cooperation with NSOs!

Filling in indicators, based on existing evidence

INDICATORS OF ENTREPRENEURSHIP:

EIP APPROACH (3)

A FIRST STEP (1)

CREATION AND DIFFUSIONOF KNOWLEDGE

ACCESS TO FINANCE

ENTREPRENEURIAL CAPABILITIES

- business R&D-intensity, by size class of firms (OECD-STI) - new-to market innovating firms, by size class (OECD-STI) - collaboration in innovation, by size class of firms (OECD-STI) - ecommerce (OECD-STI)

- ease of getting bank loans (World Economic Forum) - number and investments by business angels (OECD-STD) - venture capital in % of GDP, by investment stage (OECD-STD) - venture capital investments in high technology industries (OECD-STD)

- tertiary attainment, 25-64 and 25-64 years old (OECD-EDU) - self-employment, foreign and native-born population (OECD-ELS) - international mobility of students (OECD-EDU) - people having received training for starting up a business (GEM)

REGULATORY FRAMEWORK

MARKET CONDITIONS

ENTREPRENEURIAL CULTURE- choice of status; employee or self-employed (Eurobarometer) - entrepreneurial perceptions: opportunities versus risk (GEM) - positive image of entrepreneurship (Eurobarometer) - negative image of entrepreneurship (Eurobarometer)

- ease of doing business (World Bank) - barriers to entrepreneurship (OECD-ECO) - top statutory personal income tax rate (OECD-CTP) - corporate income tax rate, overall and for SMEs (OECD-CTP)

- Competition Law and Policy Indicator (OECD-ECO) - Import Burden (World Bank) - Export Burden (World Bank)

A FIRST STEP (1)