Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out

Entrepreneurship Indicators - Performance_ Determinants and Impact

VIEWS: 8 PAGES: 29

									    Entrepreneurship Indicators

      A joint OECD / Eurostat project




1
               OECD/Eurostat 2007   axel.behrens@ec.europa.eu
                   Entrepreneurship Indicators
                  - Performance, Determinants and Impact

Task force on entrepreneurship indicators – manual drafting group

Chair: Eurostat
Composition:
• OECD
• European countries: Denmark, Latvia, Sweden, Germany,
Portugal, Estonia, Italy
• Non-European countries: Canada, United States
• European Commission: Eurostat, DG Enterprise
Meetings: Feb 2007, May 2007, planned Sep 2007


   2
                            OECD/Eurostat 2007              axel.behrens@ec.europa.eu
                   Entrepreneurship Indicators
                  - Performance, Determinants and Impact

Task force on entrepreneurship indicators – manual drafting group
Main results and conclusions (1):
• This group would take first steps in drafting a methodological manual on
entrepreneurship.

• The core part of the manual will be a harmonized list of indicators,
structured as appropriate, with related reference documents. It was agreed
that there needs to be room for the development of future indicators.

• The important role of business demography for the entrepreneurship
project was highlighted. Therefore it was considered to be crucial to publish
as soon as possible the methodological manual for business demography

• Eurostat will commit significant resources for future entrepreneurship
statistics within its new MEETS programme
   3
                             OECD/Eurostat 2007                axel.behrens@ec.europa.eu
                    Entrepreneurship Indicators
                   - Performance, Determinants and Impact

Task force on entrepreneurship indicators – manual drafting group

Main results and conclusions (2):

• It was agreed to set a threshold for firm creation with the “employer firm
birth (death) rate” indicating the emergence of a new firm with at least one
employee.

• There was agreement on the remainder of sections A and B of the matrix
list, it was proposed to merge both, as the border lines are not so clear cut.
These would be the core indicators describing the performance of an
economy in terms of entreprenership.


   4
                              OECD/Eurostat 2007                axel.behrens@ec.europa.eu
                   Entrepreneurship Indicators
                  - Performance, Determinants and Impact

Task force on entrepreneurship indicators – manual drafting group
Main results and conclusions (3):

• In view of the significant political interest in self employment in the EU
and beyond, it was decided to consider LFS data as a promising source to
measure the rate of self employment and other indicators related to the
entrepreneur (as a person).

• It was decided to use the experiences gained in the Eurostat pilot project
on linking trade data and enterprise variables for the analysis of
entrepreneurship effects on export and for the measurement of export
propensity of new firms.


 5
                              OECD/Eurostat 2007                axel.behrens@ec.europa.eu
                     Entrepreneurship Indicators
                    - Performance, Determinants and Impact

Task force on entrepreneurship indicators – manual drafting group
Main results and conclusions (4):

 • On indicators related to high growth, it was agreed that indicators of
 high growth will be included in the core list of Entrepreneurship Indicators
 but a final decision on the precise terms of the definitions will await the
 findings of the workshop to take place in the fall.

 • The group concluded consensus on the basic structure of the matrix list.
 It was proposed to present the the basic structure of this list for
 approval to the Istanbul meeting of the EISG. At the same time EISG is
 requested to give the mandate to draft a manual to this group.
    6
                               OECD/Eurostat 2007                 axel.behrens@ec.europa.eu
     The list of indicators

    A joint OECD / Eurostat project




7
             OECD/Eurostat 2007   axel.behrens@ec.europa.eu
          Entrepreneurship Indicators
         - Performance, Determinants and Impact




     The question is, what we have to
    measure to provide the necessary
    information to policy makers in the
        context of entrepreneurship



8
                  OECD/Eurostat 2007              axel.behrens@ec.europa.eu
          Entrepreneurship Indicators
          - Performance, Determinants and Impact




       The first component of the
    measurement relates to the state of
     the economy with regard to the
     entrepreneurship phenomenon



9
                   OECD/Eurostat 2007              axel.behrens@ec.europa.eu
          Entrepreneurship Indicators
         - Performance, Determinants and Impact




     The second component of the
  measurement relates to factors that
      might have an inpact on the
  entrepreneurship phenomenon and
that can be subjected to political control



10
                  OECD/Eurostat 2007              axel.behrens@ec.europa.eu
            Entrepreneurship Indicators
            - Performance, Determinants and Impact




          The third component of the
         measurement relates to policy
     targets that may be influenced by the
        entrepreneurship phenomenon



11
                     OECD/Eurostat 2007              axel.behrens@ec.europa.eu
     Entrepreneurship Indicators
     - Performance, Determinants and Impact




     We had very little time




12
              OECD/Eurostat 2007              axel.behrens@ec.europa.eu
          Entrepreneurship Indicators
          - Performance, Determinants and Impact




                                                Impact
Performance         Determinants
                                           (= policy targets)




13
                   OECD/Eurostat 2007              axel.behrens@ec.europa.eu
                     Entrepreneurship Indicators
                     - Performance, Determinants and Impact

Performance
     19 indicators

                            Firm births
                            and deaths



                           Firm survival



                           Employment
                           in new firms


                         Competitiveness
                           contribution


14
                               OECD/Eurostat 2007             axel.behrens@ec.europa.eu
                Entrepreneurship Indicators
               - Performance, Determinants and Impact


     Determinants
    ~ 50 indicators
grouped in 6 categories

                                 Market conditions

                                 Access to finance

                          Technology and infrastructures

                          Supply of entrepreneurial spirit

                             Entrepreneurship culture

                              Regulatory framework

15
                             OECD/Eurostat 2007              axel.behrens@ec.europa.eu
               Entrepreneurship Indicators
               - Performance, Determinants and Impact

                        Creation of more         Globalization challenges
      Impact             and better jobs                mastered
   12 potential
policy target areas     Economic growth
                                                  Technological changes
                                                         utilized

                                                        Reduction of
                        Productivity growth
                                                     informal economy

                         Increased SME               Enhancement of
                         competitiveness              job satisfaction

                      “Lead markets” created   Growth of workforce flexibility


                        Poverty reduction      Emigration of talent stopped


 16
                         OECD/Eurostat 2007                axel.behrens@ec.europa.eu
          Entrepreneurship Indicators
          - Performance, Determinants and Impact




Performance         Determinants                   Impact




17
                   OECD/Eurostat 2007               axel.behrens@ec.europa.eu
                 Entrepreneurship Indicators
                 - Performance, Determinants and Impact

Performance
 19 indicators

                      Firm births
                      and deaths

                                           Employer firm birth rate


                                           Employer firm death rate


                                           Business churn

                                           Net business population growth




18
                          OECD/Eurostat 2007                          axel.behrens@ec.europa.eu
                     Entrepreneurship Indicators
                     - Performance, Determinants and Impact

 Performance
     19 indicators

                            Firm births
                            and deaths



                           Firm survival



                           Employment
                           in new firms


                         Competitiveness
                           contribution


19
                               OECD/Eurostat 2007             axel.behrens@ec.europa.eu
                     Entrepreneurship Indicators
                     - Performance, Determinants and Impact


Performance
     19 indicators

                        Firm survival

                                        Survival rate among 3-year old businesses

                                        Survival rate among 5-year old businesses

                                     Proportion of young firms with 3-year survival

                                     Proportion of young firms with 5-year survival



20
                               OECD/Eurostat 2007                    axel.behrens@ec.europa.eu
                     Entrepreneurship Indicators
                     - Performance, Determinants and Impact

 Performance
     19 indicators

                           Firm births
                           and deaths



                          Firm survival



                          Employment
                          in new firms


                        Competitiveness
                          contribution


21
                              OECD/Eurostat 2007              axel.behrens@ec.europa.eu
                     Entrepreneurship Indicators
                     - Performance, Determinants and Impact

Performance
     19 indicators

              Employment
              in new firms
                                               Self employment:
                                    Business ownership rate among start-ups
                                             Self employment:
                               Business ownership rate in total firm population

                                  Employment rate in 3 (and/or 5) year old firms

                             Average firm size by employees after 3 (and/or 5) years

                             Percentage of adults in population starting a new firm
                                                   per month

22
                               OECD/Eurostat 2007                   axel.behrens@ec.europa.eu
                     Entrepreneurship Indicators
                     - Performance, Determinants and Impact


Performance
     19 indicators

                          Firm births
                          and deaths



                         Firm survival



                         Employment
                         in new firms


                       Competitiveness
                         contribution

23
                               OECD/Eurostat 2007             axel.behrens@ec.europa.eu
                 Entrepreneurship Indicators
                 - Performance, Determinants and Impact


Performance
 19 indicators

     Competitiveness contribution

                     Rate of high-growth firms by employment and/or turnover
                          “Gazelles”: Rate of young high-growth firms by
                                         employment and/or turnover

                               Value-added contribution by new firms

                        Contribution of firms to productivity growth by size

                        Contribution of firms to productivity growth by age

                                 Export propensity of new/small firms


24
                           OECD/Eurostat 2007                         axel.behrens@ec.europa.eu
                    Entrepreneurship Indicators
                   - Performance, Determinants and Impact

Task force on entrepreneurship indicators – manual drafting group
Proposals to the EISG in detail

 • The EISG is asked to approve the list of performance indicators and
 to mandate the MDG to produce a manual, where these indicators are
 described in detail. This manual should become a joined Eurostat/OECD
 manual, preferably supported also by other international organisations,
 and should lead to a situation that all data produced on the basis of this
 manual would be internationally comparable.

 • To keep the current momentum, a first publication of data according to
 this list is planned before the end of 2007.
    25
                              OECD/Eurostat 2007                axel.behrens@ec.europa.eu
          Entrepreneurship Indicators
          - Performance, Determinants and Impact




Performance         Determinants                   Impact




26
                   OECD/Eurostat 2007              axel.behrens@ec.europa.eu
                Entrepreneurship Indicators
               - Performance, Determinants and Impact


     Determinants
    ~ 50 indicators
grouped in 6 categories

                                 Market conditions

                                 Access to finance

                          Technology and infrastructures

                          Supply of entrepreneurial spirit

                             Entrepreneurship culture

                              Regulatory framework

27
                             OECD/Eurostat 2007              axel.behrens@ec.europa.eu
                     Entrepreneurship Indicators
                    - Performance, Determinants and Impact

Task force on entrepreneurship indicators – manual drafting group
Proposals to the EISG in detail (2)

 • As far as the determinants of entrepreneurship are concerned, the MDG
 is proposing to the EISG to agree to the list of 6 areas of interest. Work
 on these areas is in different stages of development.

 • Work from different sources may feed these areas. In some cases this
 goes beyond the sphere of National Statistical Offices, i.e. goes beyond
 official statistics. A combination of sources is possible.

 • These areas should give a frame for work in the different fields.

    28
                               OECD/Eurostat 2007               axel.behrens@ec.europa.eu
                        Entrepreneurship Indicators    Performance, Determinants and Impact
  Performance                                                              Determinants                                                                    Impact
                                                                                                                                                       Creation of more
                                                                                            Supply of                                                   and better jobs
 Firm births and deaths                Market               Access
                                                                          Technology
                                                                                            entrepre
                                                                                                              Entrepre-
                                                                                                                              Regulatory
                                                                           and infra-                         neurship
       Employer firm birth rate       conditions           to finance                        neurial                          framework               Economic growth
                                                                           structure                           culture
      Employer firm death rate                                                                spirit
           Business churn
   Net business population growth
                                                                                                                                                     Productivity growth
                                        Competition,        Measures         University     Characteristics                     Firm start,
                                                                                                              Risk attitude
                                        competitive          for debt        / industry          of                           close, exit and
                                          arena             financing         interface     entrepreneurs
                                                                                                              in societies                                Creation of
       Firm survival                                                                                                            bankruptcy
                                                                                                                                 regulation             “lead markets”
        Survival rate 3 years             Anti-trust       Cost of debt
        Survival rate 5 years               laws            financing
                                                                           Technological
                                                                            cooperation
                                                                                            Education and       Attitudes
                                                                                                                 towards
                                                                                                                                  Days to start         Increased SME
                                                                                            experience of                          Procedures
     Proportion 3 years survival                           by firm size    between firms    entrepreneurs     entrepreneurs
                                                                                                                                   Cost to start
                                                                                                                                                       competitiveness
     Proportion 5 years survival         Degree of                                                                                Time to close
                                           public           VC invest
                                         ownership          ment as %        Industrial                        Desire for      Bankruptcy stigma      Poverty reduction
Employment in new firms                                      of GDP         technology      Business and        business
                                                                              transfer         E-ship          ownership
     Ownership rate start-ups             Degree of
                                            public
                                                                                             education                           Fiscal                 Technological
                                                                                                                               environment
 Ownership rate business population      involvement          Private
                                                            Equity in %   Communication:
                                                                                                                                                       changes utilized
   Employment rate young firms
                                                              of GDP        Broadband           E-ship
   Average firm size after 3 years                                                                                             Court-legal
      % adults starting firms
                                       Access to the                          access            support
                                                                                            infrastructure
                                                                                                                               framework                Globalization
                                      domestic market,
                                      public procurement     Business                                                                                challenges mastered
    Competitiveness                                            angel
                                                             financing
                                                                           Patent system,
                                                                                             Immigration
                                                                                                                               Safety and
                                                                             standards
      contribution                       Access to
                                                                                              and E-ship
                                                                                                                                 health
                                                                                                                               regulation
                                                                                                                                                         Reduction of
      Rate of high-growth firms           foreign                                                                                                     informal economy
                                          markets           Mezzanine        R&D and
          Rate of Gazelles                                  financing       Innovation        Intrapre
                                                                                                                                 Labour
      Value-added young firms                                                  data           neurship
                                                                                            opportunities                         market               Enhancement of
      Productivity contribution         Export share                                                                            regulation
                                                                                                                                                       job satisfaction
                                                           Employment
   Productivity growth contribution     of young firms
                                                            VC-backed
         Export propensity                                    firms
                                                                                                                                 Product                Growth of work
                                         Measures                                                                               regulation
                                          of export                                                                                                     force flexibility
                                                              Credit
                                           credits
    29                                                      guarantees                                                         Environment
                                                                                                                                regulation
                                                                                                                                                         Emigration of
                                                                   OECD/Eurostat 2007                                                              axel.behrens@ec.europa.eu
                                                                                                                                                         talent stopped

								
To top