1. Encouraging entrepreneurship – the OECD perspective Dr Jonathan Potter, Senior Economist OECD Centre for Entrepreneurship, SMEs and Local Development; www.oecd.org/cfewww.oecd.org/cfe

2. Structure of the presentation 1.Major entrepreneurship policy challenges 2.Improving information on entrepreneurship policies 2

3. The OECD Bologna process SMEs, Entrepreneurship and innovation 3

4. Policy challenges: OECD Bologna Process First OECD Ministerial Meeting on SME policies, Bologna, Italy, 2000 Second OECD SME and entrepreneurship Ministerial Meeting, Istanbul, Turkey, 2004 Thematic meetings –SME and entrepreneurship financing, Brasilia –SME internationalisation, Athens –SMEs and global value chains, Tokyo Bologna+10 High Level Meeting, Paris, France, 2010 Consult the policy statements: www.oecd.org/cfe/sme www.oecd.org/cfe/sme 4

5. Policy challenges: SME, Entrepreneurship and Innovation Book Framework conditions, e.g. –Remove regulatory obstacles and institutional disincentives –Support entrepreneurship culture and motivations Skills, e.g. –Build up entrepreneurship education in universities –Strengthen training for SME managers and workforces Knowledge flows, e.g. –Enhance knowledge-based entrepreneurship –Promote local and global networks within innovation systems Social entrepreneurship, e.g. –Improve institutions for social entrepreneurship –Introduce social clause in public procurement Consult the book: www.oecdbookshop.orgwww.oecdbookshop.org 5

6. Policy challenges: Bologna+10 High-Level Meeting 1.SME innovation, e.g. –Improve intellectual assets management (advisory services and adapted IPR system) –Support participation of SMEs in global value chains 2.Access to finance, especially to growth firms, e.g. –Phase-out crisis recovery policies to support SME access to finance –Foster the wider use of sound techniques for co-financing 3.Promote green growth, e.g. –Ensure a stable policy framework for green growth –Raise entrepreneurs’ awareness of the transition toward a sustainable economy Consult the Chair’s Summary: www.oecd.org/cfe/smewww.oecd.org/cfe/sme 6

7. Information needs Benchmarking of countries on entrepreneurship activity Determinants of entrepreneurship activity (culture, skills, financing etc) Impacts of entrepreneurship (innovation, productivity, jobs etc) Target group information (women, youth, old, minorities, distressed areas etc) Policy impacts Sub-national data 7

8. The OECD-EUROSTAT Entrepreneurship Indicators Project (EIP) (www.oecd.org/std)www.oecd.org/std Goals –Overcome information gap on an important economic and social issue –Encourage countries to use common definitions, methodologies and classifications Methods –Involvement of NSOs in variable specification and data production to ensure comparability –Not a single measure of entrepreneurship, but various indicators on different aspects 8

9. The EIP Framework 9

10. Entrepreneurial determinants: example of indicators Access to financeR&D and technologyEntrepreneurial capabilities Ease of getting bank loans (WEF) Business R&D intensity, by size class Tertiary attainment, 25- 64 years old Investments by business angels New-to-market innovating firms, by size class Self-employment, foreign and native-born population VC as % of GDP, by investment stage Collaboration in innovation, by size class International mobility of students VC investment in high tech industries E-commercePeople having received training for business start-ups (GEM) 10

11. Entrepreneurial performance indicators 11 Firm-basedEmployment-basedTurnover-based Employer enterprise birth-rates (by industry and size) Share of high growth firms Employer enterprise death-rates (by industry and size) Share of gazelles One- and two-year survival rates Employment creation by enterprise births Share of 1- and 2-year- old employer enterprises Employment destruction by enterprise death

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13. Timely indicator Enterprise creation 13

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16. OECD & GEDI contributions OECD: firm-level data; 34 advanced countries; from NSOs; across several dimensions GEDI: individual-level data; advanced, emerging & developing countries; focus on innovative entrepreneurship; headline composite indicator 16

17. Conclusion Governments increasingly recognise SMEs/entrepreneurship in policy Better information is needed Information should be in line with the policy challenges (financing, green growth, social dimension etc) GEDI and OECD EIP have important complementary roles They can input to the new OECD-EC Panorama on Entrepreneurial Activity 17