ANNEX B. List of Indicators of Entrepreneurial Determinants

This Annex presents a comprehensive list of indicators of entrepreneurial determinants. Indicators are classified into the six categories of determinants set by the conceptual framework of the OECD-Eurostat Entrepreneurship Indicators Programme: 1. Regulatory Framework; 2. Market Conditions; 3. Access to Finance; 4. Creation and Diffusion of Knowledge; 5. Entrepreneurial Capabilities; 6. Entrepreneurial Culture. For each indicator, a short description and the source of data are provided.

While many critical factors affecting entrepreneurship are covered by the indicators presented in the table, the list should not be considered as exhaustive. The selection of indicators reflects the current availability of data, meaning that important indicators may be missing just because no source of international data was found.

Table B.1. Indicators of entrepreneurial determinants and data sources

Category of determinants

Definition

Data sources

1. REGULATORY FRAMEWORK

Administrative burdens (entry and growth)

Burden of government regulation

Survey responses to the question: For businesses, complying with administrative requirements permits, regulations, reporting) issued by the government in your country is (1 = burdensome, 7 = not burdensome). http://reports.weforum.org/global-competitiveness-report-2015-2016/competitiveness-rankings/

World Economic Forum, Global Competitiveness Report

Costs required for starting a business

The official cost of each procedure in percentage of Gross National Income (GNI) per capita based on formal legislation and standard assumptions about business and procedure. http://www.doingbusiness.org/data/exploretopics/starting-a-business

World Bank, Doing Business

Minimum capital required for starting a business

The paid-in minimum of capital requirement that the entrepreneur needs to deposit in a bank before registration of the business starts as percentage of income per capita.

http://www.doingbusiness.org/data/exploretopics/starting-a-business

World Bank, Doing Business

Number of days for starting a business

The average time (recorded in calendar days) spent during each enterprise start-up procedure.

http://www.doingbusiness.org/data/exploretopics/starting-a-business

World Bank, Doing Business

Number of procedures for starting a business

All generic procedures that are officially required to register a firm.

http://www.doingbusiness.org/data/exploretopics/starting-a-business

World Bank, Doing Business

Procedures time and costs to build a warehouse

Corresponds to an average of three measurements: 1) Average time spent during each procedure, 2) Official cost of each procedure and 3) Number of procedures to build a warehouse.

http://www.doingbusiness.org/data/exploretopics/dealing-with-construction-permits

World Bank, Doing Business

Building quality control index

The indicator is based on six other indices—the quality of building regulations, quality control before construction, quality control during construction, quality control after construction, liability and insurance regimes, and professional certifications indices.

http://www.doingbusiness.org/methodology/dealing-with-construction-permits

World Bank, Doing Business

Registering property

Corresponds to an average of three measurements: 1) Number of procedures legally required to register property, 2) Time spent in completing the procedures and 3) Registering property costs.

http://www.doingbusiness.org/data/exploretopics/registering-property

World Bank, Doing Business

Index of the quality of the land administration system

The quality of land administration index is the sum of the scores on the reliability of infrastructure, transparency of information, geographic coverage and land dispute resolution indices. The index ranges from 0 to 30, with higher values indicating better quality of the land administration system.

http://www.doingbusiness.org/data/exploretopics/registering-property

World Bank, Doing Business

Time for paying taxes

Time it takes to prepare, file and pay the corporate income tax, vat and social contributions. Time is measured in hours per year. http://www.doingbusiness.org/data/exploretopics/paying-taxes

World Bank, Doing Business

Bankruptcy regulations

Cost - Average cost of bankruptcy proceedings.

The cost of the proceedings is recorded as a percentage of the estate’s value. http://www.doingbusiness.org/data/exploretopics/resolving-insolvency

World Bank, Doing Business

Time - Average duration of bankruptcy proceedings

Time is recorded in calendar years. It includes appeals and delays.

http://www.doingbusiness.org/data/exploretopics/resolving-insolvency

World Bank, Doing Business

Recovery rate

The recovery rate calculates how many cents on the dollar secured creditors recover from an insolvent firm at the end of insolvency proceedings. http://www.doingbusiness.org/data/exploretopics/resolving-insolvency

World Bank, Doing Business

Court and legal framework

Enforcing contracts– Cost in % of claim

Cost is recorded as a percentage of the claim, assumed to be equivalent to 200% of income per capita or USD 5000, whichever is greater. No bribes are recorded. Three types of costs are recorded: court costs, enforcement costs and average attorney fees.

http://www.doingbusiness.org/data/exploretopics/enforcing-contracts

World Bank, Doing Business

Enforcing contracts – Time

Time is recorded in calendar days, counted from the moment the plaintiff files the lawsuit in court until payment. This includes both the days when actions take place and the waiting periods between.

http://www.doingbusiness.org/data/exploretopics/enforcing-contracts

World Bank, Doing Business

Enforcing contracts – Quality of judicial process

The quality of judicial processes index measures whether each economy has adopted a series of good practices in its court system in four areas: court structure and proceedings, case management, court automation and alternative dispute resolution.

http://www.doingbusiness.org/data/exploretopics/enforcing-contracts

World Bank, Doing Business

Product and labour market regulations

Difficulty of hiring

It measures whether laws or other regulations have implications for the difficulties of hiring a standard worker in a standard company. It covers components such as whether fixed-term contracts are prohibited for permanent tasks, the maximum cumulative duration of fixed-term contracts, the ratio of the minimum wage to the average value added per worker or the availability of incentives for employers to hire employees under the age of 25.

http://www.doingbusiness.org/data/exploretopics/labor-market-regulation#difficultyHiring

World Bank, Doing Business

Difficulty of firing

It measures whether laws or other regulations have implications for the difficulties of firing a standard worker in a standard company. Components of the indicator include elements such as the length in months of the maximum probationary period or whether the employer needs to notify a third party (such as a government agency) to terminate a redundant worker.

http://www.doingbusiness.org/data/exploretopics/labor-market-regulation#difficultyFiring

World Bank, Doing Business

Ease of hiring foreign labour

Survey responses to a question related to labour market efficiency: In your country, how restrictive are regulations related to the hiring of foreign labor? [1 = highly restrictive; 7 = not restrictive at all].

http://reports.weforum.org/global-competitiveness-report-2015-2016/appendix-a-measurement-of-key-concepts-and-preliminary-index-structure/

World Economic Forum, Executive Opinion Survey

Rigidity of hours index

The indicator is an index with seven components, the most important being: i) the maximum number of days allowed in the work week; ii) the premium for night work; iii) whether there are restrictions on night work; iv) whether there are restrictions on weekly holiday work; vii) the average paid annual leave for workers.

http://www.doingbusiness.org/data/exploretopics/labor-market-regulation#rigidityHours

World Bank, Doing Business

Job quality

The indicator covers 12 questions: (i) whether the law mandates equal remuneration for work of equal value; (ii) whether the law mandates non-discrimination based on gender in hiring; (iii) whether the law mandates paid or unpaid maternity leave; (iv) the minimum length of paid maternity leave (in calendar days); (v) whether employees on maternity leave receive 100% of wages; (vi) the availability of five fully paid days of sick leave a year; (vii) the availability of on-the-job training at no cost to the employee; (viii) whether a worker is eligible for an unemployment protection scheme after one year of service; (ix) the minimum duration of the contribution period (in months) required for unemployment protection; (x) whether an employee can create or join a union; (xi) the availability of administrative or judicial relief in case of infringement of employees’ rights; and (xii) the availability of a labor inspection system.

http://www.doingbusiness.org/data/exploretopics/labor-market-regulation#rigidityEmployment

World Bank, Doing Business

Income taxes, wealth/bequest taxes

Average income tax plus social contributions

The average rate of taxation in percentage of the gross wage. The indicator is based on a standard case: single (without children) with high income.

http://dx.doi.org/10.1787/data-00265-en

OECD Revenue Statistics

Highest marginal income tax plus social contributions

The highest rate of taxation in percentage of the gross wage. The indicator is based on a standard case: single (without children) with high income.

http://dx.doi.org/10.1787/data-00265-en

OECD Revenue Statistics

Revenue from bequest tax

The revenue from bequest tax as a per cent of GDP.

http://dx.doi.org/10.1787/ctpa-rev-data-en

OECD Revenue Statistics

Revenue from net wealth tax

The revenue from net wealth tax as a per cent of GDP.

http://dx.doi.org/10.1787/ctpa-rev-data-en

OECD Revenue Statistics

Business and capital taxes

SME tax rates

http://stats.oecd.org//Index.aspx?DataSetCode=TABLE_II2

OECD Revenue Statistics

Taxation of corporate income revenue

The revenue from corporate income tax as percentage of GDP.

http://dx.doi.org/10.1787/ctpa-rev-data-en

OECD Revenue Statistics

Taxation of stock options

The average tax wedge for purchased and newly listed stocks. Average incomes are used.

http://dx.doi.org/10.1787/9789264012493-en

OECD, The Taxation of Employee Stock Options – Tax Policy Study No. 11

Patent system; standards

Intellectual property protection

Survey responses to the question: in your country, how strong is the protection of intellectual property, including anti-counterfeiting measures? (1 = extremely weak, 7 = extremely strong). http://reports.weforum.org/global-competitiveness-report-2015-2016/competitiveness-rankings/

World Economic Forum, Global Competitiveness Report

Property rights

Survey responses to the question: property rights, including over financial assets (1 = are poorly defined and not protected by law, 7 = are clearly defined and well protected by law).

http://reports.weforum.org/global-competitiveness-report-2015-2016/competitiveness-rankings/

World Economic Forum, Global Competitiveness Report

2. MARKET CONDITIONS

Access to Foreign Markets

Trading across borders

The indicator is an index composed of two components: 1) Time, in days, to comply with all procedures required to import/export goods, 2) The cost associated with all procedures required to import/export goods. http://www.doingbusiness.org/data/exploretopics/trading-across-borders

World Bank, Doing business

Barriers to trade and investment

This indicator measures explicit barriers and other barriers to trade and investment. It is based on qualitative information on laws and regulations collected periodically and turned into quantitative indicators.

http://www.oecd.org/eco/growth/indicatorsofproductmarketregulationhomepage.htm#indicators

OECD, Product Market Regulation Indicators

Services Trade Restrictiveness Index (STRI)

The indicator is calculated on the basis of a regulatory database of comparable, standardised information on trade and investment relevant policies in force in each country.

http://www.oecd.org/tad/services-trade/services-trade-restrictiveness-index.htm

OECD, Services Trade Restrictiveness Index Regulatory Database

Degree of public involvement

Government enterprises and investment

Data reflect the number, composition and share of output supplied by State-Operated Enterprises (SOEs) and government investment as a share of total investment.

https://www.fraserinstitute.org/sites/default/files/economic-freedom-of-the-world-data-for-researchers.xls

IMF, World Bank, UN National Accounts and World Economic Forum

Licensing restrictions

Zero-to-10 ratings are constructed for 1) the time cost (measured in number of calendar days required to obtain a license) and 2) the monetary cost of obtaining the license (measured as a share of per-capita income). These two ratings are then averaged to arrive at the final rating.

http://iresearch.worldbank.org/servicetrade/default.htm#

World Bank

Private Demand

Buyer sophistication

Survey responses to: purchasing decisions are (1 = based solely on the lowest price, 7 = based on a sophisticated analysis of performance).

http://reports.weforum.org/global-competitiveness-report-2015-2016/competitiveness-rankings/

World Economic Forum, Global Competitiveness Report

3. ACCESS TO FINANCE

Access to debt financing

Country credit rating

The indicator is based on an assessment by the Institutional Investor Magazine Ranking. http://www.imd.org/wcc

IMD World Competitiveness Yearbook

Domestic credit to private sector

The indicator refers to financial resources provided to the private sector – such as through loans, purchases of non-equity securities, and trade credits and other accounts receivable – that establish a claim for repayment. Data are from IMF’s International Financial Statistics.

http://databank.worldbank.org/data/views/variableSelection/selectvariables.aspx?source=world-development-indicators#

Published in World Indicators, World Bank. Development

Ease of access to loans

Survey responses to: how easy it is to obtain a bank loan in your country with only a good business plan and no collateral (1 = extremely difficult, 7 = extremely easy). http://reports.weforum.org/global-competitiveness-report-2015-2016/competitiveness-rankings/

World Economic Forum, Global Competitiveness Report

Interest rate spread

The lending rate minus deposit rate based on an average of annual rates for each country. http://data.worldbank.org/indicator/FR.INR.LNDP

World Bank Open Data

Legal rights index

The degree to which collateral and bankruptcy laws facilitate lending. Higher scores indicating that collateral and bankruptcy laws are better designed to expand access to credit. http://www.doingbusiness.org/data/exploretopics/getting-credit

World Bank, Doing Business

Share of SME loans in total business loans

Specific definitions are implemented by the countries covered in the Scoreboard.

http://www.oecd.org/cfe/smes/financing-smes-and-entrepreneurs-23065265.htm

OECD Financing SMEs and Entrepreneurs: An OECD Scoreboard

Interest rate spread between average SME and large firm rate

Specific definitions are implemented by the countries covered in the Scoreboard.

http://www.oecd.org/cfe/smes/financing-smes-and-entrepreneurs-23065265.htm

OECD Financing SMEs and Entrepreneurs: An OECD Scoreboard

Access to venture capital

Venture capital availability

Survey responses to: how easy it is for entrepreneurs with innovative but risky projects to find venture capital in your country (1 = extremely difficult, 7 = extremely easy). http://reports.weforum.org/global-competitiveness-report-2015-2016/competitiveness-rankings/

World Economic Forum, Global Competitiveness Report

Venture capital

Private equity investments

OECD Entrepreneurship Finance Database

Stock markets

Capitalisation of primary stock market

The capitalisation of the primary stock market (the value of the issued shares on the market) relative to GDP.

http://www.world-exchanges.org/home/index.php/statistics/ipo-database

World Federation of Exchanges

Capitalisation of secondary stock

An assessment of the efficiency of stock markets providing finance to companies. Ranking market goes from 1 (worst) to 10 (best).

http://www.imd.org/wcc

IMD, World Competitiveness Yearbook

Investor protection

The main indicators include: transparency of transactions (Extent of Disclosure Index), liability for self-dealing (Extent of Director Liability Index), shareholders’ ability to sue officers and directors for misconduct (Ease of Shareholder Suits Index), strength of Investor Protection Index (the average of the three index).

http://www.doingbusiness.org/data/exploretopics/protecting-minority-investors

World Bank, Doing Business

Market capitalisation of newly listed companies

The market capitalization (total number of new shares issued multiplied by their value on the first day of quotation) of newly listed domestic shares relative to GDP.

http://www.world-exchanges.org/home/index.php/statistics/ipo-database

World Federation of Exchanges

4. CREATION AND DIFFUSION OF KNOWLEDGE

R&D activity

Business expenditure on R&D BERD

Business enterprise expenditure on R&D (BERD) at current prices and PPPs.

http://dx.doi.org/10.1787/msti-v2015-2-table23-en

OECD, Main Science and Technology Indicators

Gross domestic expenditure on R&D GERD

Gross domestic expenditures on R&D covers total intramural expenditure performed on the national territory during a given period.

http://dx.doi.org/10.1787/msti-v2015-2-table12-en

OECD, Main Science and Technology Indicators

Higher education expenditure on R&D HERD

Higher education expenditure on R&D (HERD) at 2010 prices and PPPs.

http://dx.doi.org/10.1787/msti-v2015-2-table45-en

OECD, Main Science and Technology Indicators

International co-operation between patent applications at PCT

The indicator measures international co-operation between patent applications under the Patent Cooperation Treaty (PCT). The measure is calculated as a percentage of total patents (by application date).

http://dx.doi.org/10.1787/data-00507-en

OECD Patent Statistics

Patents awarded

Number of patents awarded to inventors based on their residence. The indicator is a sum of patents awarded by the European Patent Office (EPO) and US Patent and Trademark Office (USPTO).

http://dx.doi.org/10.1787/data-00507-en

OECD Patent Statistics

Transfer of non-commercial knowledge

Research in higher education sector financed by business

R&D expenditure performed at higher education and funded by business, measured in 2010 US dollars, constant prices and PPPs.

http://dx.doi.org/10.1787/data-00189-en

OECD Science and Technology Statistics

Patents filed by universities and public labs

Patents filed by universities and public labs per GDP. Only countries having filed at least 250 patents over the period are included.

http://dx.doi.org/10.1787/139a90c6-en

OECD Science, Technology and Industry Outlook

Universities or other Public Research Organizations as source of information

The share of innovative enterprises that states universities or other PROs as an important source of information for product and process innovation.

(National) Innovation Surveys

University / Industry collaboration on R&D

Survey responses to: the level of collaboration between business and universities in R&D (1 for non-existent collaboration to 7 for extensive collaboration).

http://reports.weforum.org/global-competitiveness-report-2015-2016/competitiveness-rankings/

World Economic Forum, Global Competitiveness Report

Co-operation among firms

SMEs co-operating with other firms for innovation

Share of innovative SMEs stating any type co-operation as the source of innovation.

(National) Innovation Surveys

Technology availability and take-up

Turnover from e-Commerce

Total internet sales over the last calendar year, excluding VAT, as a percentage of total turnover.

http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tin00110&plugin=1

Eurostat, Information Society Statistics

Enterprises Using e-Government

The share of enterprises using any eGovernment services. The measure is based on all firms with 10 employees or more, excluding the financial sector.

http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tin00107&plugin=1

Eurostat, Information Society Statistics

ICT expenditure

Expenditure for ICT equipment, software and services as a percentage of GDP. http://ec.europa.eu/eurostat/product?code=isoc_tc_ite&language=en&mode=view

European Information Technology Observatory (EITO)

ICT expenditure in Communications

Expenditure for telecommunications equipment and carrier services as a percentage of GDP. http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=isoc_tc_ite&lang=en

European Information Technology Observatory (EITO)

5. ENTREPRENEURIAL CAPABILITIES

Entrepreneurship education

Population with tertiary education

The share of persons between 25-34 of age with tertiary education including doctoral education or equivalent.

http://dx.doi.org/10.1787/eag-2015-table8-en

OECD Education at a Glance

Quality of Management Schools

Survey responses to: the quality of business schools across countries is (1 = extremely poor —among the worst in the world; 7 = excellent—among the best in the world). http://reports.weforum.org/global-competitiveness-report-2015-2016/competitiveness-rankings/

World Economic Forum, Global Competitiveness Report

Training in starting a business

The percentage of the population aged 18-64 that received training in starting a business during school or after school. A Global Perspective on Entrepreneurship Education and Training (2008).

http://www.gemconsortium.org/report

Global Entrepreneurship Monitor (GEM)

Immigration

Migrants with tertiary education

The share of highly skilled migrants as a percentage of total migrants.

http://www.oecd.org/els/mig/databaseonimmigrantsinoecdcountriesdioc.htm

Database on immigrants in OECD countries (DIOC)

6. ENTREPRENEURSHIP CULTURE

High status successful entrepreneurship

Percentage of 18-64 population who agree with the statement that in their country, successful entrepreneurs receive high status.

http://www.gemconsortium.org/

Global Entrepreneurship Monitor (GEM)

Entrepreneurial intention

The percentage of 18-64 population (individuals involved in any stage of entrepreneurial activity excluded) who intend to start a business within three years.

http://www.gemconsortium.org/

Global Entrepreneurship Monitor (GEM)

Desirability of becoming self-employed

Survey responses to: desire to become self-employed within the next 5 years. This question is asked only to non-self-employed individuals.

http://ec.europa.eu/public_opinion/flash/fl_354_en.pdf

European Commission, Flash Eurobarometer

Opinion about entrepreneurs

Survey responses to: overall opinion about entrepreneurs (self-employed, business owners). They are ranked against managers in large companies and professions.

http://ec.europa.eu/public_opinion/flash/fl_354_en.pdf

European Commission, Flash Eurobarometer

Fear of failure

Percentage of 18-64 population who perceives good opportunities but who indicates that fear of failure would prevent them from setting up a business.

http://www.gemconsortium.org/

Global Entrepreneurship Monitor (GEM)

Risk for business failure

Survey responses to: being willing to start a business if a risk exists that it might fail.

http://ec.europa.eu/public_opinion/flash/fl_354_en.pdf

European Commission, Flash Eurobarometer

Second chance for entrepreneurs

Survey responses to: people who have started their own business and have failed should be given a second chance.

http://ec.europa.eu/public_opinion/flash/fl_354_en.pdf

European Commission, Flash Eurobarometer