1. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 System of Indicators on Competitiveness & Entrepreneurship in Andalusia

2. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 Index 1.Background 2.Project 3.Theoretical Framework 4.Quality Assesment Framework 5.Indicator evaluation & selection 6.Implementation & Next Steps System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

3. 1. Background Planification of Public Statistics in Andalusia 1.The Statute of Autonomy of Andalusia is the basic regulation for the regional self-government. In its article 76.3 the Statute states the following “....the exclusive competence related to statistics for the Community objectives, the planification of statistics, the development, management and organization of its own statistical system corresponds to the Autonomous Comunity...” 2. The 4/1989 Law of statistics for the self-governing Community creates the Regional Institute of Statistics (IEA) and establishes that an Andalusian Statistics Plan will systemize the statistical activity exclusive to Andalusia as a compulsory framework for the development of such activity. The Law also states: “...one of the functions of the Regional Institute (IEA) will be to urge and encourage statistical research in order to increase the awareness of the social and economic situation in Andalusia. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

4. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 Planification of Public Statistics in Andalusia Law 6/1993 of the 1993-1996 Plan Law 4/1998 of the 1998-2001 Plan Law 8/2002 of the 2003-2006 Plan Law 4/2007 of the 2007-2010 Plan Each Plan lasts four years Developed by annual statistical programmes System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

5. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 Statistical Plan of Andalusia 2007-2010 Preferential lines of action Statistics related to: Immigration Innovation and businesses Quality of education Recent evolution of economic indicators Culture Statistical information needs General statistical objectives Specific statistical objectives 1.Productive structure 2.Social changes 3.Entrepreneurial network 4.Labour market 5.Information society and R+D 6.Environment and territory 7.Planification and assesment of politics and public services Planification of Public Statistics in Andalusia To create resource and capacity indicators that influence the competitiveness of the businesses that shape the Andalusian entrepreneurial network System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

6. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 Statistical projects: all activities which aim to develop the initial phase of the process leading to a statistical operation Statistical operations: they are the typical activities of the Statistical System. They respond to a need for information, with a suitably documented methodology (through a technical project) and they have a diffusion product associated with a fixed calendar Diffusion activities: all the actions of which the objectives are the design and introduction of strategies and products for the circulation of statistics Instrumental activities: their purpose is to develop and introduce statistical infrastructures, tools and methodologies Types of statistical activities Planification of Public Statistics in Andalusia Statistical Plan of Andalusia 2007-2010 System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

7. 2. Project II Workshop on Entrepreneurship Statistics. 17-18 November 2008 Introduction The System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA – (first published today in the IEA internet website) has been carried out in two phases during the last three years by the Andalusian Statistics Institute in collaboration with a group of researchers from different universities, coordinated by the Department of Economics and Statistics at the University of Huelva. The main objective of the project was to encompass the viability, content and scope of a system of regional entrepreneurial competitiveness indicators, followed by the implementation of the system as an IEA statistical operation and also the proposal of its improvement through the exploitation of existing statistics and surveys or the design of new ones. With the current project, the IEA shares aims with a small group of pioneering institutions which are also creating systems of entrepreneurial indicators. We have to stress that this is one of the first attempts with these features both within a self-governing region and even at the regional level throughout Europe. This results in an additional challenge, since territorial disintegration of indicators implies an added obstacle. System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

8. Statistical Plan of Andalusia 2007-2010 Preferential lines of action Innovación y EmpresaInnovation & businesses Tejido empresarial andaluzEntrepreneurial network Productivity and competitiveness Project IEA- University of Huelva System of indicators on Competitiveness & entrepreneurship 2005/06 + Implementation of SICIEA & new statistical operations 2007/08 II Workshop on Entrepreneurship Statistics. 17-18 November 2008 System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

9. Objectives To fix the state of economic analysis on entrepreneurship To determine information needs To design a theoretical/conceptual framework To identify the existing statistical information To make an inventory of the available indicators which could potentially capture the considered dimensions To assess the quality of the potential indicators and select those resulting from a set of minimum requirements To summarize, configurate and implement SICIEA as an IEA statistical operation To design strategies to cover the gaps and improve the System To facilitate the participation of the IEA in international projects System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

10. Conceptual framework Dimensions Inventory of indicators Assesment Selection Implementation Gaps II Workshop on Entrepreneurship Statistics. 17-18 November 2008 Phases and outputs System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

11. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework (Background) Facts Increasing demand on Entrepreneurship Statistics Current status of Statistics related to entrepreneurship No consolidated theory nor research paradigm on this topic System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

12. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework (Background) System of indicators vs Set of indicators Statistical Information System Need a theoretical framework Identifies dimensions and aspects relevant to entreprenurship activity Determines avilability/deficit of indicators to measure those dimensions Organized & Targeted Statistical Operations System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

13. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework (Background) Competitiveness vs entrepreneurship Widespread indicator systems focus on competitiveness as central/key element. Systems focused on entrepreneurship present its contribution to employment, competitiveness, growth or innovation level as a result or consequence from entrepreneurship interaction with other markets The latter system includes both perspectives, and highlighting the word entrepreneurship or competitiveness would be more a terminological issue System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

14. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework A framework which is nourished by current studies and international ongoing experiences. Combining academic progress and practical requirements Based on the analysis of the Entrepreneurial factor as with other productive factors Entrepreneurial factor market where demand and supply matches resulting in a Entrepreneurial activity level, a specific productive structure, employment & innovation level, economic results... System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

15. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Entrepreneurial function deals with: Decreasing inefficiencies in the firm. Identifying profit opportunities continuously appearing/ rising in the market Facing uncertainty Innovating Those agents developing any of the entrepreneurial functions above mentioned are considered entrepreneurial factors, regardless of the success achieved or the link to business property System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

16. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Demand Factors Supply Factors Entrepreneurial Activity System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

17. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Demand Factors Domestic Economic Environment & regulation Profit Opportunities International Economic Environment &Market Openness System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

18. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Demand Factors ( Profit Opportunities) Economy Market Openness Orientation towards foreign trade Financial Integration Market Regulation Entry Barriers Knowledge Transfer Protection System of Innovation Rights Regulated Sectors Economic Environment International Domestic Technology Diffusion System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

19. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Supply Factors Institutions Opportunity Costs Socio & Psychological Factors Demographics Enterpreneurial Human Capital Productive Factors Mobility System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

20. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Supply Factors (Institutions) Regulation Labour Market Institutions/Regulations Financial Market Institutions Administrative Barriers Bankruptcy & Debts relief (Chapter 11) Taxes on capital transfer & capital gains Rules Licenses Firing procedures/Costs Permanent contracts vs Fixed term Subsidies Access to finance Legal procedures System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

21. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Supply Factors (Entrepreneurial Human Capital) Human Capital Cummulative Process Voluntary Human Capital Investment/ Formal Education Non Formal/Involuntary Human capital Investment Externalities Tenure/Experience Learning by exporting Social capital Learning by doing Entrepreneurial Culture System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

22. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Supply Factors (Productive Factors Mobility) Capital Market Labour Market Communication Transport Infrastructures Productivity Wages & Salaries Professional Human Capital External Finance source Credit Financing costs Guarantees Stock market Venture capital Internal Finance source System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

23. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Supply Factors (Psycho&Sociological Factors) Psychological Factors Ethnic groups/Migration Entrepreneur social Image Sociological Factors Risk perception/Profile Motivation & Attitudes System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

24. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Supply Factors (Opportunity Costs) Taxes & Social Security Taxes Social Security Contributions & Incentives Other & Incentives Corporate & Capital Income Wage & Salary Income System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

25. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Supply Factors (Demographics) Individual Family structure Marital sorting by occupation Family Gender Age Ancestors Marital Status Size System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

26. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Entrepreneurial Activity Success Stock Results Flow System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

27. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 3. Theoretical Framework Entrepreneurial Activity Individuals Business Success Stock Flow Exit/Deaths Entry/Births Growth Survival Results Financial Results Competitiveness Innovation Employment System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

28. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 Availability level/Deficit of indicators by dimension 347 indicators Factores de oferta Demanda Movilidad factores Capital Humano Característ. individuales Costes e incentivos Factores socio / sicológicos Instituciones StockFlujo Actividad Empresarial Oportun. Bº Output Entorno (33) Regulación (5) Apertura (10) Difusión tecnológica (19) Stock (10) Capital (6) Trabajo (29) Infraestructura (4) Impuestos (14) Empresarios (6) Empresas (12) Empresarios (2) Éxito Empresarios (7) Empresas (8) Inversión voluntaria (11) Inversión involuntaria (18) Característ. personales Característ. familiares Seguridad Social (8) Factores sociológicos (4) Factores sicológicos (5) Mercado de Capital (1) Mercado de Trabajo (21) Trabas administrativas (11) Empleo (18) Resultado (55) Competitividad (4) Innovación (16) Empresas (10) Supply Factors Demand Factors Mobility Human Capital Demo graphics Costs Incenti Psycho& Socio Factors Institu tions StockFlow Actividad Empresarial Entrepreneurial Activity Oportun. Bº Profit Opport Output Entorno (33) Econ Enviro. Regulación (5) Regula tion Apertura (10) Open ness Difusión tecnológica (19) Tech. diffusion Stock Capital Labour Infra structure Taxes Indivi dual Enterp rises Indivi dual Succes Indivi duas Enterp rises Formal Educ ation Non form. Invest ment Indivi dual Family Social Security Psycho logy Socio logy Capital Market Labour Market Admin. Barriers Employ ment Financ. Results Competi tiveness Innov ation Enterp rises 4. Quality Assesment Framework System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

29. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 4. Quality Assesment Framework To evaluate & select systematically the most adecuate indicators to build the system, the quality assesment Framework needs to: be suitable for a wide range of indicators focus on characteristics easily measurable from available information evaluate key features of the system such as geographical comparability System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

30. Quality Assesment Framework Criteria RelevanceAccuracyAvailability II Workshop on Entrepreneurship Statistics. 17-18 November 2008 4. Quality Assesment Framework System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

31. Criteria RelevanceAccuracyAvailability Qualitative Assesment Proxy vs Direct indicator II Workshop on Entrepreneurship Statistics. 17-18 November 2008 4. Quality Assesment Framework Quality Assesment Framework System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

32. Criteria RelevanceAccuracyAvailability Data Collection Method Cross Country Comparability II Workshop on Entrepreneurship Statistics. 17-18 November 2008 4. Quality Assesment Framework Quality Assesment Framework System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

33. Criteria RelevanceAccuracyAvailability Availability across OECD countries Availability at regional level II Workshop on Entrepreneurship Statistics. 17-18 November 2008 4. Quality Assesment Framework Availability over time Regularity Quality Assesment Framework System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

34. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 5. Indicator evaluation & selection Quality Assesment Report System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

35. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 Indicators selection by dimension and aspect Factores de oferta Demanda Movilidad factores Capital Humano Característ. individuales Costes e incentivos Factores socio / sicológicos Instituciones StockFlujo Actividad Empresarial Oportun. Bº Output Stock (10)(6) (29) (4) (14) (6) (12) (2) Éxito (7) (8) (11) (18). Social (8) (4) (5) Capital (1) Trabajo (21) Trabas (11) (18) (55) (4) (16) (10) Supply Factors Demand Factors Mobility Human Capital Demo graphics Costs Incentive Psycho& Socio Factors Institu tions StockFlow Actividad Empresarial Entrepreneurial Activity Oportun. Bº Profit Opport. Output (33) Econ. Enviro. (5) Regula tion (10) Open ness (19) Tech. diffusion Stock Capital Labour Infra structure Taxes Indivi dual Enterp rises Indivi dual Success Indivi dual Enterp rises Formal Educ ation Non form Invest- ment Indivi dual Family Social Security Psycho logy Socio logy Capital Market Labour Market Admin. Barriers Employ ment Financ. Results Competi tiveness Innov ation Enterp rises 5. Indicator evaluation & selection System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

36. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 6. Implementation & Next Steps Implementation of the system synthesis: Entrepreneur family characteristics, family size, marital status, family relatives being enterpreneur... Success from individuals/entrepreneur perspective Need to solve empty dimensions Design & make it accesible through internet Flow from individuals/entrepreneur perspective System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

37. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 Indicators selection by dimension and aspect 101 indicators Factores de oferta Demanda Movilidad factores Capital Humano Característ. individuales Costes e incentivos Factores socio / sicológicos Instituciones StockFlujo Actividad Empresarial. Bº Output Stock (10)(6) (29) (4) (14) (6) (12) (2) Éxito (7) (8) (11) (18). Social (8) (4) (5) Capital (1) Trabajo (21) Trabas (11) (18) (55) (4) (16) (10) Supply Factors Demand Factors Mobility Human Capital Demo graphics Costs Incentiv Psycho& Socio Factors Institu tions StockFlow Actividad Empresarial Entrepreneurial Activity Oportu. Bº Profit Opport Output (33) Econ. Enviro. (5) Regula tion (10) Open ness (19) Tech. diffusion StockCapital Labour Infra structure Taxes Indivi dual Enterp rises Indivi dual Success Indivi dual Enterp rises Formal Educ ation Non form Invest ment Indivi dual FamilySocial Security Psycho logy Socio logy Capital Market Labour Market Admin Barriers Employ ment Financ. Results Competi tiveness Innov ation Enterp rises 6. Implementation & Next Steps System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

38. II Workshop on Entrepreneurship Statistics. 17-18 November 2008 6. Implementation & Next Steps Next Steps for an extended and improved indicator System: Enterprises stock, success & flow Individual/ Entrepreneur profile, flow & success Investigate those dimmensions showing info deficits Capital Market & Access to finance Work on comparability Issues Economic Sentiment/Business Surveys Regulation & Admin Barriers from a regional view System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -