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The OECD-Eurostat Entrepreneurship Indicators Programme Preliminary Indicators for Italy, Europe and Other OECD Urbino University, Italy April 22, 2008 Tim Davis OECD Statistics Directorate
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Overview Entrepreneurship Indicators Programme (EIP) What is the EIP? Why was it launched? Framework for Addressing/Measuring Ent’ship Definitions An Entrepreneurship Model Core Indicators of Performance Determinant Indicators on Access to Finance Exploring High Growth Some Entrepreneurship Indicator “Previews”
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Genesis of Entrepreneurship Indicators Programme 2004-2005 OECD statistical activity initiated by: Kauffman Foundation Danish-led Consortium (ICE) OECD Centre for Entrepreneurship Ministerial (Istanbul) Eurostat also exploring entrepreneurship Survey on Factors of Business Success (FoBS)
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Outcome of Feasibility Study Entrepreneurship was a policy priority Limited involvement of NSOs Internationally-comparable measures are scarce Fundamental definitions and concepts missing Measures lacked Policy Context Need information on firms and entrepreneurs Basic business demography data incomparable Resistance to new firm surveys
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OECD Programme Engage countries; Get NSOs involved Make entrepreneurship data “mainstream” Common language, terminology, measures Entrepreneurship Measurement Manual Encourage common use of: Core Definitions Framework for understanding and developing Indicators and data specifications Formal partnership with Eurostat in 2007
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Now an OECD-Eurostat Programme Business Register based data collection Leverage success in some countries to stimulate cooperation across all OECD/EU NSOs maintain micro-data OECD & Eurostat publish aggregates Co-ordinate country-level, micro-data research e.g. Determinants of high growth Pilot test new entrepreneurship questions
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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.
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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 Indicators focus on business entrepreneurship
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Definitions and Indicators EIP offers broad definition of entrepreneurship No single measure perfectly reflects definition Must distinguish types of entrepreneurship Employers vs. non-employers Measures of High Growth and Gazelles Innovative firms Exporting firms For example…………….
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Sub-Dividing Entrepreneurial Firms Low Growth Replicators Degree of Innovation High Growth Replicators Company Growth Low Growth Innovators High-Growth Replicators Low Growth Replicators High-Growth Innovators
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A Simple Model
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Core Indicators
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Some Data Previews…. Preliminary OECD-Eurostat Results
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Employer Firm Birth Rate
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Employer Firm Death Rate
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Business Churn
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Employer Firm Birth, Death and Churn Rates
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Business Population Growth Rate
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Survival Rate, 3 and 5 years
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Survival Rates by Sector, Italy
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Proportion of 3 and 5 year old Firms
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High Growth
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Gazelle Rates– Preliminary OECD-Eurostat Results
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Business Ownership Start-up Rate
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Business Ownership Rate
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Employment in 3 and 5 Year Old Firms
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Average Firm Size After 3 and 5 Years
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Value-Added by Small Firms
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Export Performance of Small Firms
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Total Venture Capital as a % of GDP
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VC: Start-up vs. Development
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Venture Capital and ICTs
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Enterprise vs. Employer Enterprise
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www.oecd.org/statistics/entrepreneurshipindicators SDBS: http://www.oecd.org/document/17/0,3343,en_2 649_34233_36938705_1_1_1_1,00.htmlhttp://www.oecd.org/document/17/0,3343,en_2 649_34233_36938705_1_1_1_1,00.html Le manuel BD : www.oecd.org/std/industry- services/businessdemographymanualwww.oecd.org/std/industry- services/businessdemographymanual SDBS: STD.Indservstat@oecd.orgSTD.Indservstat@oecd.org tim.davis@oecd.org
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