1. Entrepreneurship Indicators Project Entrepreneurship Indicators Project Developing Comparable Measures of Entrepreneurship and the Factors That Enhance or Impede It Tim Davis OECD Statistics Directorate EISG Meeting, Rome, December 4/5, 2006

2. 2 Entrepreneurship Indicators Project Background Fundamental Aims of the Project Definition and Measurement Issues Comparing Some Existing Measures

3. 3 Background Long history of OECD and other interest in E-Ship Explicit policy priority for virtually all countries Little explicit entrepreneurship data at NSOs Little sustained international statistical development Asked to test feasibility of better international measures Financial support and a push from: – Kauffman Foundation – International Consortium for Entrepreneurship (ICE) Demand for data from OECD Ministerial in Istanbul Coincident with OECD creation of CFE

4. 4 Feasibility Study Confusion regarding definitions/measures Inadequacy or non-comparability of any single measure Opinion surveys and case studies supply many indicators Strong demand for harmonised definitions and data Member-country interest and support There are data gaps and potential data sources? BUT Will countries accept to harmonise data? Will countries invest in data? Strong, cautious YES from OECD Statistics Committee

5. 5 Fundamental Aims of the Project Compile and publish a Compendium on Entrepreneurship STEPS Develop a Measurement Handbook: Framework, standard definitions and measurement tools Establish Indicator Priorities: Identify data required by policy-makers to measure E-Ship and underlying factors Develop Existing Data and Model survey questions Engage national and international bodies so that money and effort will be devoted to producing data

6. 6 What is Entrepreneurship? - Definitions An attitude? A behaviour? A specific economic activity? Numerous definitions exist: Ability to marshal resources to capitalize on opportunities Willing to take risks, be innovative; exploit opportunities None of these are necessarily limited to new or small firms Term is often (incorrectly) applied to leaders, hard workers, innovators, any SME or anyone in business Should we include: Entrepreneurship in existing – even old – firms Are take-overs and transitions entrepreneurship?

7. 7 What is Entrepreneurship? - Measures For some: Its self-employment; the act of creating new firms More firm creation leads to more high growth Research shows thats not true But for others, including EIP, it is more: Entrepreneurship is the process leading to the creation and growth of businesses Must measure both creation and growth Distinguish self-employment; identify size class and other characteristics

8. 8

9. 9