Measuring entrepreneurship - the European approach

Measuring entrepreneurship - the European approach

Measuring entrepreneurship the European approach OECD Entrepreneurship Indicators Project Expert Workshop 26-27/10/2005 Peter Begh Nielsen, Hartmut Schrr European Commission (DG MARKT, Eurostat) The European Enterprise Demography Project Justification: The Lisbon programme: Context: The recognised need to foster more entrepreneurial drive in Europe

Almost starting from scratch No harmonised European data Only few national experiences Phase 1: produce Phase 2: Launching a pilot survey to structural data Mandatory data collection Business demography Project: Variables and indicators

Birth / death rates as indicators of economic dynamism Survival rates as indicators of start-up success Effects of enterprise birth and death on employment Growth of surviving enterprises and its effect on employment Breakdown of these indicators by Economic activity (NACE 2-3 digit level) Size class (employees) Legal form

Business demography dissemination Data and publications available free of charge at Eurostat website Reference years 1997 to 2002 17 Member States, Norway, Romania Phase 3: Enlarging the scope to other topics From measuring start-ups to measuring factors of business success From enterprise statistics to profiling of

entrepreneurs How to measure Factors of Business Success Figure 1. Survival rates for new enterprises in Denmark 1990 2000, 1994 2000 and 1998 - 2000 100 Index 0. year=100 1998 80 1999 1994 60 40 20 1995

2000 1990-population 1993 1996 1997 1994 1994-population 1995 1996 1998 1999 2000 1997 1998-population 1998

1999 2000 0 0. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. year year year year year year year year year year year Branch experience having an impact Figure 2. Survival rate for entrepreneurs broken down by branch experience Pct.

70 60 50 40 30 20 10 0 Without branchexperience With branchexperience Can we identify gazelles? Growth enterpreneurs 1pct. P art-time enterpreneurs 22 pct.

Employers 35 pct. Life-style enterpreneurs 41pct. Factors of Business Success project Joint project of DG MARKT and Eurostat with 15 national statistical institutes Survey of enterprises newly born in 2002 that have survived for 3 years Common questionnaire, partly based on

national experience (DK, FR, IT, PL, SE) Common recommendations on methodology (sampling, grossing-up etc.) Elements of the questionnaire Start-up conditions and profile of the entrepreneur Motivation for start-up Financing Difficulties at start-up Entrepreneurs characteristics: education, experience, gender, age, citizenship

Present situation Employment, turnover Co-operation, networking Difficulties developing the enterprise Elements of the questionnaire Future plans Future of the enterprise (continuing, selling, closing down) Development of employment, turnover, investments

Expected results April 2006: data delivery to Eurostat Autumn 2006: publication of results Autumn 2006: review of project, decision on follow-up project The road ahead Focus on special segments:

Gazelles Innovative start-ups Spin-offs Female entrepreneurs Ethnic entrepreneurs Future challenge: Ageing entrepreneurs Facilitating take-overs

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