1. The Danish Entrepreneurship Index Istanbul, 2007 Anders Hoffmann, Ph.D. Creative Director, FORA Ministry of Economic and Business Affairs, Division for Research and Analysis

2. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk Political motivation The Danish Government’s Political Platform The Government will draw up an ambitious, holistic and multi-year strategy to make Denmark a leading growth, knowledge and entrepreneurial society Our goal is for Denmark, by 2015, to be one of the societies in the world where most growth enterprises are launched

3. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk Analytical approach Knowledge Statistics Policy FORA

4. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk Entrepreneurship is a process General population Want-to-be 30% Entry 1% Survival 70% Exit 25% Growth 5% GEM Eurostat ICE

5. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk Comparing Performance - Creating New Firms EUROSTATEmployee-firms

6. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk Comparing Performance - Generating High-Growth Entrepreneurs

7. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk Identifying key policy areas - Methodology 1. The framework conditions for entrepreneurship are defined and quantified 2. The empirical links between the indicators measuring the framework conditions and the indicators measuring high growth are tested 3. Identify key policy areas for enhancing entrepreneurship performance based on regression and comparative techniques

8. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk

9. Identifying key policy areas for enhancing entrepreneurship performance

10. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk -100 Income taxes Administrative burdens - start Incentives Bankruptcy Business taxes 1020-20-30-40-5030-60-70-80 Administrative burdens - growth Labour market regulation Distance between Denmark and the top countries

11. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk 100 Change DK Change DK–T4 Change T4 - 10100- 10100- 10 Income taxes Administrative burdens - start Incentives Bankruptcy Business taxes Administrative burdens - growth Labour market regulation

12. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk Conclusions We have identified Denmark’s main policy challenge – creating more high-growth firms. We have identified 4 critical policy areas for Denmark – entrepreneurship education, taxes, entrepreneurship infrastructure and bankruptcy legislation. Detailed policy analysis is possible using a combination of data and knowledge!

13. Copyright 2007 © FORA, Langelinie Allé 17, 2100 Kbh Ø - www.foranet.dk Contact information AH@ebst.dk www.foranet.dk http://ice.foranet.dk Without data you are just another guy with an opinion!