Entrepreneurship Indicators Project
Developing International Data on
Entrepreneurship , Entrepreneurs and
Entrepreneurial Firms
Tim Davis
OECD Statistics Directorate
Assessing the Feasibility of Microdata Access
Luxembourg, October 26, 2006
OECD
Entrepreneurship Indicators Project
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Background to the EIP
Fundamental Aims of the Project
Some Definitions and Measures
Examples of Entrepreneurship Indicators
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Why Microdata?
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Background
Entrepreneurship Indicators Project
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Long history of OECD and other interest in E-Ship
Explicit policy priority for virtually all countries
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Numerous OECD entrepreneurship studies (Flash list)
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Little explicit “entrepreneurship” data at NSOs
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Little sustained international statistical development
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Strong member-country interest and ‘support’
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Financial support and a push from:
Kauffman Foundation
International Consortium for Entrepreneurship (ICE)
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Data support and partnerships within OECD
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Entrepreneurship-Related Work at OECD
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SMEs and Employment Creation, 1996
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Fostering Entrepreneurship, (Jobs Strategy), 1998
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Women Entrepreneurs in SMEs, 1998
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Small Business, Job Creation and Growth, 1998
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Impact of Product Market Regulation, 1999 and 2005
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Linking Entrepreneurship to Growth, 2000
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Business Views on Red Tape, 2001
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Entrepreneurship and Local Development, 2003
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Firm Demographics and Survival, 2003
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Factors of Success and Statistical Strategies, 2002
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Fostering Firm Creation and Entrepreneurship, 2004
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Micro-Policies for Growth and Productivity, 2005
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Fundamental Aims of the Project
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Compile and publish a Compendium on Entrepreneurship
STEPS
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Develop a Measurement Handbook: Framework, standard
definitions and measurement tools
Establish Indicator Priorities: Identify data required by
policy-makers to measure E-Ship and underlying factors
Develop Existing Data and Pilot survey questions
Engage national and international bodies so that money
and effort will be devoted to producing data
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What is Entrepreneurship? - Definitions
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An attitude? A behaviour? A specific economic activity?
Numerous definitions exist:
 Pursuit of goals with resources beyond your current control
Ability to marshal resources to capitalize on opportunities
Willing to take risks, be innovative; exploit opportunities
None of these are necessarily limited to new or small firms
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What is Entrepreneurship? - Measures
For some:
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It’s self-employment; the act of creating new firms
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More firm creation leads to more high growth
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Research shows that’s not true
But for others, including us, it is more:
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Entrepreneurship is the process leading to the creation
and growth of businesses
Must measure both creation and growth
Distinguish self-employment; identify size class and other
characteristics
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Sample Indicators: Entrepreneurship Performance
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Firm start-up rates, by size category
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Measures of high-growth firms
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Business ownership; Business density
Entrepreneurial activity (TEA):
– Population involved in business creation
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Relative importance of SME sector
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Growth in SME payrolls
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Degree of entry and exit “churn”
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Firm survival rates
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Number of university spin-offs created
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Sample Indicators: Framework Conditions
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Entrepreneurship education
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Access to financing
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Taxation and incentives
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Innovation and R&D
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Access to technology
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Re-start possibilities; Bankruptcy environment
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Ease of entry; Administrative burdens
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Patents and patent productivity
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Infrastructure and Quality of life
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Entrepreneurship needs microdata
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Central to any concept of E-Ship: Actions and outcomes
of interest relate to individual firms and entrepreneurs
Research on E-Ship involves studying individual units:
enterprises or entrepreneurs
Firm-level data are required to analyse creation,
destruction, innovation, technology adoption, outsourcing
Regional differences are significant; Urban/Rural too
Geographic and sectoral tabulations quickly strain limits
of confidentiality
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Entrepreneurship needs microdata
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What enhances/impedes Entrepreneurship?
Why do some firms do better than others?
Aggregate data by industry or geography won’t suffice
Microdata reveals heterogeneity in output, employment,
investment and productivity across firms
In expanding industries, some firms still decline
In contracting industries, some firms still grow
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Microdata Improves Business Dynamics
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The character of business is changing
Pace of change is changing: rapid entry, exit, transformation
Blurring of boundaries between sectors; between countries
To track business activity requires tracking connection
between employers, employees
For example: Linked information on firms, sites and
employees distinguishes real from false births
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New Zealand study reduced pure births by 20%
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Such non-pure births were 60% of employment growth
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Similar microdata analysis in Canada
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Improved purity of start-up figures: from 18.5% to 14.5%
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Microdata Access Stimulates Research
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Canadian Research Data Centre Program has almost
1000 current projects involving 1200 researchers
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Over 250 articles produced to date
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Though predominantly a social statistics program……
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Strong demand for files with economic characteristics
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Labour and Income Dynamics
HHLD Spending
Financial Security
LFS
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Views of Entrepreneurship Researchers
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Entrepreneurship research is still a young discipline
Ironically, as role of small firms is, arguably, growing…
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Statistical coverage of small firms is often declining
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Cost and response burden issues are reducing samples
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Increasing modelling of small-firm statistics based on
admin sources.
International Consortium on Entrepreneurship: strong
appeal on behalf of entrepreneurship research needs
Support and encouragement for OECD work on access
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