Entrepreneurship at a Glance

2226-6941 (online)
2226-6933 (print)
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Entrepreneurship at a Glance presents an original collection of indicators for measuring the state of entrepreneurship along with explanations of the policy context and interpretation of the data.

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Entrepreneurship at a Glance 2011

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28 June 2011
9789264097711 (PDF) ;9789264095762(print)

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Entrepreneurship at a Glance is a new, recurrent publication that presents an original collection of indicators for measuring the state of entrepreneurship along with explanations of the policy context and interpretation of the data. This publication also includes special chapters that address measurement issues, and solutions, concerning entrepreneurship and its determinants. In this first issue the special topics covered are: business demography, green entrepreneurs and angel capital.

This new publication is a product of the OECD-Eurostat Entrepreneurship Indicators Programme, which is a long-term programme of internationally-comparable policy-relevant entrepreneurship statistics. The work involves developing standard definitions and concepts and engaging countries and international Agencies in the collection of data. An international group of statisticians and analysts provides guidance to the Programme that benefits from sponsorship by the Ewing Marion Kauffman Foundation in the United States.

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  • Foreword
    Entrepreneurship at a Glance is a new publication that presents key indicators on entrepreneurship. Until recently, most entrepreneurship research relied on ad hoc data compilations developed to support specific projects and virtually no official statistics on the subject existed. The collection of harmonised indicators presented in this publication is the result of the OECD-Eurostat Entrepreneurship Indicators Programme (EIP). The programme, started in 2006, is the first attempt to compile and publish international data on entrepreneurship from official government statistical sources. Indeed, to meet the challenge of providing new entrepreneurship indicators, while minimising costs for national statistical offices and burden on business, the programme focuses attention on exploiting existing sources of data instead of developing new business surveys.
  • Reader's Guide
    This publication presents indicators of entrepreneurship collected by the OECD-Eurostat Entrepreneurship Indicators Programme (EIP). Started in 2006, the programme develops multiple measures of entrepreneurship and its determinants according to a simplified conceptual framework that distinguishes between the manifestation of entrepreneurship, the factors that influence it, and the impacts of entrepreneurship on the economy or society. A set of indicators of entrepreneurial performance is proposed for understanding and comparing the amount and type of entrepreneurship that take place in different countries. This approach reflects the idea that analysts should not focus only on enterprise creation or any other single measure to study entrepreneurship: entrepreneurs and entrepreneurial forces can be found in many existing businesses and understanding the dynamism these actors exert on the economy is as important as understanding the dynamics of start-ups.
  • Entrepreneurship Indicators and Business Registers
    The recognition that entrepreneurship and entrepreneurs are important drivers of economic growth, employment, innovation and productivity has been long understood by analysts and economic theoreticians, indeed, centuries if one goes back to Cantillon, the first academic to explicitly attempt to define, and describe the role of, entrepreneurs.
  • Measuring Green Entrepreneurship
    In the aftermath of the global financial and economic crisis, the central role of entrepreneurship in boosting the economic activity has been emphasized in many countries. Governments have often allocated important shares of recovery packages to helping entrepreneurs, either in the form of loan guarantees, tax incentives, research credit designed to boost innovation, or systems to encourage self-employment. Yet, instead of being neutral in their industry targets, stimulus plans have often given priority to environmentally-friendly investment such as projects for improving energy efficiency, or enhancing sustainable transport. These priorities are not new. In almost all cases, they have been part of longer-term commitments towards environmental protection, support for smaller enterprises, and innovation. Within this difficult economic context, many countries have increased public expenditure to revive growth, while also taking the opportunity to orientate national economies towards long-term sustainability and "green growth". According to the United Nations Environmental Program (UNEP, 2009) South Korea invested in 2009 79% of its total economic stimulus package in "green activities" representing almost 7% of its GDP, followed by China and Australia with 34% and 21% of their stimulus packages going to "green investments", corresponding to 5.2% and 0.9% of their respective GDP. In this context, the study of green entrepreneurship went from being simply "fashionable" to being essential for policy guidance.
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  • Expand / Collapse Hide / Show all Abstracts Structural Indicators on the Enterprise Population

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    • Enterprises by size class
      The distribution of the business population by size provides basic information on the structure of the business sector. It is related to the distribution of businesses by activity sector and age and to the size of the internal market. It is of particular use, together with other business statistics by size class, to policy makers wishing to focus on the role in the economy of entreprises of different sizes.
    • Employment by size class
      The breakdown of employment by size class describes how total employment is distributed among enterprises of different sizes. It provides important information on the ability of firms of various sizes to foster employment.
    • Value added by size class
      Value added by enteprise size class describes the contribution of enterprises of different sizes to total value added of the business sector. This indicator contributes to improve understanding of the types of businesses that generate more value added in the economy.
    • Exports by size class
      Exports by enteprise size class describe the contribution of enterprises of different sizes to total exports. This indicator provides information on the profile of exporters.
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  • Expand / Collapse Hide / Show all Abstracts Enterprise Birth, Death and Survival

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    • Birth rate of employer enterprises
      The birth of new enterprises is a key indicator of business dynamism. It reflects an important dimension of entrepreneurship in a country, namely the capacity to start up entirely new businesses.
    • Death rate of employer enterprises
      The death of enterprises is an integral part of the phenomenon of entrepreneurship. Knowing the percentage of firms that die in a given year and comparing it over time and across countries is of high interest to policy makers to understand, for example, the impact of structural and cyclical effects on the disappearance of enterprises.
    • Churn rate of employer enterprises
      The churn rate, i.e. the sum of births and deaths of enterprises, indicates how frequently new firms are created and how often existing enterprises close down. In fact, the number of births and deaths of enterprises accounts for a sizeable proportion of the total number of firms in most economies. The indicator reflects a country’s degree of "creative destruction", and it is of high interest for analysing, for example, the contribution of firm churning to aggregate productivity growth.
    • Survival rate of employer enterprises
      Observing the post-entry performance of firms is as important as analysing their birth rate. The survival rate of enterprises provides information on the share of enterprises surviving one or more years after birth, and allows to investigate questions such as how long do start-ups survive after creation and the differences in survival rates of enterprises across countries and industries.
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  • Expand / Collapse Hide / Show all Abstracts Enterprise Growth

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    • High-growth enterprises rate
      High-growth enterprises are firms that by their extraordinary growth make the largest contribution to net job creation, despite typically representing a small proportion of the business population. With their presence in the economy considered promising for the creation of more jobs and innovation, interest in high-growth firms is high among policy makers.
    • Gazelles rate
      Gazelles represent the young enterprises among the population of high-growth enterprises. Their role in job creation is of particular interest to policy makers.
    • Distribution of enterprises by growth rate
      The distribution of enterprises by rate of growth is an important indicator of the heterogeneity of business dynamics. It contributes to the analysis, for example, of job creation and productivity.
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  • Expand / Collapse Hide / Show all Abstracts Timely Indicators of Entrepreneurship

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    • Number of new enterprises
      The recent global crisis has heightened interest in entrepreneurship as an essential element to foster economic recovery and employment growth. In order to analyse the impacts of economic cycles on new firm creation policymakers and analysts need as up-to-date as possible data. The indicators presented in this section responds to this need.
    • Distribution of new enterprises by industrial activity
      The share of activities in enterprise creations are compiled as a number of new enterprises in each activity, as a percentage of the number of new enterprises in the total economy. The year on year growth rates of new enterprise creations by activity are compiled as percentage differences between the number of enterprises created in a given quarter and the number of enterprises created during the same quarter in the previous year.
    • Number of bankruptcies
      Bankruptcy is used as an alternative indicator for enterprise deaths. Sources for bankruptcies data used for the Timely Indicators of Entrepreneurship Database are described in Table A.2, Annex II.A.
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  • Expand / Collapse Hide / Show all Abstracts Women Entrepreneurship

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    • Entrepreneurial activity by gender
      The contribution of women to entrepreneurial activity is not yet well understood, one of the main problems being the lack of sound and reliable data on the gender dimension of entrepreneurship. Developing effective policies to improve gender equality in entrepreneurship requires the collection of comprehensive and internationally comparable data. This section presents indicators on gender differences in entrepreneurial performance from two different types of sources, namely an academic consortium and official statistics offices. The indicators are meant to be examples of the information currently available at the international level.
    • Obstacles to entrepreneurship by gender
      Entrepreneurs face a range of obstacles when starting their business and growing it. If appropriate support has to be designed, knowing the gender differences in the perception and or experience of barriers is useful. This section looks at obstacles to entrepreneurship by gender, as reported by three official statistics sources. In a context of international comparisons, the perception of obstacles may be affected not only by the previous experience of the respondents (typically, individuals with entrepreneurial experience tend to be more aware of the difficulties if starting up or growing an enterprise) but also by cultural factors.
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  • Expand / Collapse Hide / Show all Abstracts Migrant Entrepreneurship

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    • Share of foreign enterprise owners
      Foreign migrants often pursue entrepreneurial activities in their country of residence. These can include many types of firms: from ones which employ only a few workers and have limited growth potential to firms that grow quickly, creating many new jobs and everything in between. How these firms may fare and provide for migrants varies across countries and their regulatory framework. It is thus important to understand how successful these firms are, the challenges they may face and what scope exists for policy makers to contribute to their success.
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  • Expand / Collapse Hide / Show all Abstracts Determinants of Entrepreneurship: Selected Indicators

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    • Regulatory framework
      A combination of opportunity, capabilities and resources does not necessarily lead to entrepreneurship if opportunity costs (e.g. forgone salary and loss of health insurance) and start-up costs outweigh the potential benefits. The regulatory framework is therefore a critical factor affecting countries’ entrepreneurial performance. While the regulatory framework, as broadly defined by the EIP, encompasses taxes, regulations and other public rules and institutions affecting entrepreneurship, this section focuses on measures of burden on the creation of new enterprises.
    • Access to finance
      Venture capital is a type of financing that has an important role for young companies with innovation and growth potential, as it replaces or complements traditional bank financing. The development of the venture capital industry is seen by policy makers as an important framework condition to stimulate entrepreneurship.
    • Culture
      The entrepreneurial culture in a country affects the attitude that individuals have towards entrepreneurship, the likelihood of choosing entrepreneurship as a career, the ambitions to succeed and to start again after a failure, or the support provided to family and relatives planning to set up a business. All these aspects play a role, although there is scarce empirical evidence on their relative importance and differences across countries. This section provides examples of indicators that measure certain aspects of the entrepreneurial culture, in particular the image that people have of entrepreneurs and the understanding of entrepreneurs’ role in the economy.
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