Entrepreneurship Indicators Project
Developing Comparable Measures of Entrepreneurship and the
Factors That Enhance or Impede It
Tim Davis
OECD Statistics Directorate
EISG Meeting, Rome, December 4/5, 2006
Entrepreneurship Indicators Project

Background

Fundamental Aims of the Project

Definition and Measurement Issues

Comparing Some Existing Measures
2
Background

Long history of OECD and other interest in E-Ship

Explicit policy priority for virtually all countries

Little explicit “entrepreneurship” data at NSOs

Little sustained international statistical development

Asked to test feasibility of better international measures

Financial support and a push from:
Kauffman Foundation
International Consortium for Entrepreneurship (ICE)
–
–

Demand for data from OECD Ministerial in Istanbul

Coincident with OECD creation of CFE
3
Feasibility Study

Confusion regarding definitions/measures

Inadequacy or non-comparability of any single measure

Opinion surveys and case studies supply many indicators

Strong demand for harmonised definitions and data

Member-country interest and ‘support’

There are data gaps and potential data sources?
BUT

Will countries accept to harmonise data?

Will countries invest in data?
Strong, cautious “YES” from OECD Statistics Committee
4
Fundamental Aims of the Project

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 Model survey questions
Engage national and international bodies so that money
and effort will be devoted to producing data
5
What is Entrepreneurship? - Definitions
An attitude? A behaviour? A specific economic activity?
Numerous definitions exist:
“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
Term is often (incorrectly) applied to leaders, hard workers,
innovators, any SME or anyone in business
Should we include:
Entrepreneurship in existing – even old – firms
Are take-overs and transitions “entrepreneurship”?
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6
What is Entrepreneurship? - Measures
For some:

It’s self-employment; the act of creating new firms
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More firm creation leads to more high growth

Research shows that’s not true
But for others, including EIP, 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
7
2003 Entrepreneurship rates
%
25.0
GEM
self employ-EIM
self employ-OECD
OECD - Birth rate
WB - Entry rate
20.0
15.0
10.0
5.0
at
es
St
ni
te
d
U
U
ni
te
d
Ki
ng
do
m
ed
en
Sw
Sp
ai
n
Ze
al
an
d
N
ew
nd
s
et
he
rla
N
Ita
ly
an
y
er
m
G
nc
e
Fr
a
Fi
nl
an
d
an
ad
a
C
Au
st
ra
l ia
0.0
8
%
2002/2001 Entrepreneurship rates variation
60
40
20
0
-20
-40
St
at
es
ni
te
d
Ki
U
ni
te
d
U
40
ng
do
m
ed
en
Sw
Sp
ai
n
et
he
rla
nd
s
N
ew
Ze
al
an
d
N
G
Ita
ly
er
m
nc
e
an
y
2003/2002 Entrepreneurship rates variation
Fr
a
Fi
nl
an
d
60
an
ad
a
%
C
Au
st
ra
lia
-60
GEM
self employ-EIM
self employ-OECD
OECD - Birth rate
WB - Entry rate
20
0
-20
-40
self employ-EIM
self employ-OECD
St
ni
te
d
U
Ki
ni
te
d
at
es
ng
do
m
ed
en
Sw
Sp
ai
n
Ze
al
an
d
N
OECD - Birth rate
U
GEM
ew
nd
s
et
he
rla
N
Ita
ly
an
y
G
er
m
nc
e
Fr
a
Fi
nl
an
d
an
ad
a
C
Au
st
ra
l ia
-60
9
WB - Entry rate