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

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 1/ The 1st one contains Eurostat data for proportion of 3-year and 5-year old firms 2/ the 2nd one (below the 1st one) contains estimates for Canada and US for proportion of 2-year and 5-year old firms, based on the number of employer birth in y-2 (resp y-5), the 2-year (resp. 5-year) survival rate in y-2 (resp. y-5) and the total firm population in y.

Proportion of Young Employer Firms, USA and Canada

Export Performance

Export Performance – Outside EU

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”