Entrepreneurship Indicators
Programme
Highlights Previews
EISG Paris November
EIP Definitions
• Entrepreneurs: those persons (business owners) who
seek to generate value, through the creation or
expansion of economic activity, by identifying and
exploiting new products, processes or markets.
• Entrepreneurial activity: the enterprising human
action in pursuit of the generation of value, through
the creation or expansion of economic activity, by
identifying and exploiting new products, processes or
markets.
• Entrepreneurship is the phenomenon associated with
entrepreneurial activity.
Some Important Principles

Entrepreneur vs. Entrepreneurship

Not just small or young firms

Not all firms are entrepreneurial

They are doing something “new”

Some entrepreneurs fail

“Value” can be defined in different ways
A Framework for Indicators
Core Indicators
Entrepreneurial Performance
Firm-based
Employment-based
Other
Employer firm birth rate
High Growth Firm Rate by
Employment
High Growth Firm Rate by Turnover
Employer firm death rate
Gazelle Rate by Employment
Gazelle Rate by Turnover
Business churn
Ownership rate start-ups
Value-added by young firms
Net business population growth
Ownership rate business population
Productivity contribution, young firms
Employment: 3 and 5 year old
firms
Average firm size after 3 and 5
years
Innovation Performance, young or
small firms
Survival rate, 3 and 5 years
Proportion 3 and 5 year survival
Export Performance, Small firms
Enterprise Birth Rate
(Not fully comparable)
Employer Firm Birth Rates
Employer Firms:
Births, Deaths, Churn
Employer Firm Birth Rate by Sector
Employer Firm Death Rate by Sector
High Growth Over 3 Years
Business Population
Business Population Changes
by Size Class
Proportion of 3 and 5 year old
Firms
Proportion of Young Employer
Firms, USA and Canada
Export Performance
Export Performance – Outside EU
Venture Capital investment as a percentage of GDP
2006 or latest available year
Early stages
Expansion
United Kingdom
Sweden
United States
Belgium
OECD
EU
Switzerland
Canada
France
Spain
Finland
Netherlands
Norway
Denmark
Italy
Ireland
Australia (*)
New Zealand
Portugal
Germany
%
Austria
0.5
(*) 2005 data
0.4
0.3
0.2
0.1
0.0
Share of high-technology sectors in total Venture Capital,
as a percentage of total venture capital investment, 2006
Communications
Information technology
Health/biotechnology
United States
Canada
Ireland
Denmark
Sweden
Austria
OECD
United Kingdom
Switzerland
Finland
EU
Netherlands
Norway
Belgium
Portugal
France
Australia (*)
Italy
Germany
Spain
New Zealand
0
(*) 2005 data
10
20
30
40
50
60
70
80
90
100 %
2003-2006 trends in Venture Capital investment as a percentage of GDP
%
2006
0.6
0.5
0.4
0.3
0.2
0.1
0.0
(*) 2003 -2005
2003
%
0.25
0.20
0.15
0.10
0.05
0.00
Early stage investment
as a percentage of GDP, 2006
%
0.60
0.50
0.40
0.30
0.20
0.10
0.00
Venture capital investment
as a percentage of GDP , 2006
Venture capital investment
as a percentage of GDP , 2003-2006
%
0.60
0.50
0.40
0.30
0.20
0.10
0.00
2003
2004
2005
2006
Venture capital investment
Million USD
30,000
25,000
20,000
15,000
10,000
5,000
0
2003
2004
2005
2006
in 000 USD
8000
7000
6000
5000
4000
3000
2000
1000
0
Average deal size
Venture capital investment, 2006
Average deal size - Venture capital investment
2003-2006
%
8000
7000
6000
5000
4000
3000
2000
1000
0
2003
2004
2005
2006
Leading Indicators of Entrepreneurship

Developing Administrative and LFS-based
measures

Timely, yet based on a comprehensive register
or a large sample
“Birth Rates” from LFS Data

UK self-employed “firm” births (%)
Survival rates of
self-employed “firms”