1. Profile of US Data Sources on Entrepreneurship Richard Clayton and Jim Spletzer US Bureau of Labor Statistics OECD Entrepreneurship Indicators Steering Group Rome, Italy December 5, 2006

2. Entrepreneurship “engine of growth” Social and economic freedom, self- determination Must replace business deaths Must maintain economic vitality –Nationally –Locally –Geographic competition in US is growing –International implications

3. Goals of this paper To collect existing sources To profile their characteristics To provide a platform for identifying strengths and weaknesses To help identify gaps Hopefully, seek ways to fill those gaps

4. Desired Characteristics of Entrepreneurship Data Accurate, timely, relevant Detailed by industry Detailed by geography Business coverage Household/demographic coverage Longitudinally linked Satisfies users

5. Uses and Users Users are at all levels: –National, state, local – public and private User Goals –Understand current environment –Seek ways to intervene or influence the economic and social environment Tax and other policies Incentives Support start ups –Incubators, science parks, –Aid with financing

6. Users: Examples Small Business Administration National Governor’s Association National Association of Counties States: “Enterprise Florida” Counties: “Fairfax County Economic Development Authority” –$6.4 M, 34 staff –5 countries –Incubators, training, support Key: how to maintain the level of start ups How to help small businesses survive

7. BLS Data Sources NameTypeSizeLongitudinalFrequency/Lag Quarterly Census of Employment & Wages Administrative Tax Data (UI) 8.8 millionNoQuarterly/ 7 months Business Employment Dynamics Administrative Tax Data (UI) (private sector) 6.8 millionYesQuarterly/ 8 months Current Population Survey (w/Census) Household Survey 60,000NoMonthly/ 1 month

8. Census Bureau and Small Business Administration Data Sources NameTypeSize LongitudinalFrequency/Lag Business Register Business Survey & Administrative Data ~24 million No5 year cycle/ ~2 years Related Products: Longitudinal Business Database Integrated Longitudinal Business Database Funded by the Small Business Administration: Statistics of U.S. Businesses Business Information Tracking Series Longitudinal Employer House- hold Dynamics BLS QCEW, UI wage records, SSA demographics 5 million+ (new states being added) YesQuarterly/ 1 year Survey of Business Owners Business Survey2.3 millionNoEvery 5 years/ ~4 years American Community Survey Household Survey5 millionNoAnnual/ ~6-8 months

9. Other Federal Government Data Sources NameTypeSizeLongitudinalFrequency/Lag Survey of Small Business Finances (Federal Reserve) Business Survey 3,500NoEvery 5 years/ 3-4 years National Longitudinal Surveys (BLS) Household Survey VariesYesVaries Survey of Income and Program Participation (Census) Household Survey VariesYesVaries Statistics of Income (IRS) Administrative Data All U.S.NoVaries Proprietor Income & Employment (BEA) Administrative Data All U.S.NoQuarterly/ 3-9 months

10. Kauffman Foundation Data Sources NameTypeSizeLongitudinalFrequency/Lag Index of Entrepreneurial Activity Household Data (drawn for the Current Population Survey) 8 million+NoAnnual/ 5-9 months Panel Study of Entrepreneurial Dynamics Household Survey I: 64,622 II: 32,000 YesVaries Kauffman Financial & Business Database Business Data (D&B) 900,000+YesVaries Kauffman Firm Survey Business Survey 5,000 per year YesUnpublished

11. Other Non-Government Data Sources NameTypeSizeLongitudinalFrequency/Lag Dun’s Market Identifier File (Dun & Bradstreet) Financial Info Collected by D&B 17 million+ No N/A: constantly modified & sold Global Entrepreneurship Monitor (GEM) Household Survey 23,291NoAnnual/ Variable Lag

12. Strengths and Weaknesses Each has benefits and weaknesses Tax-based and population census-based sources are comprehensive geographically and industrially Few sources are current Few sources are longitudinal

13. Summary of Profile Wide array of data sources exist Most business sources are government tax-based sources, thus comprehensive Most household sources are from population censuses or small surveys Most are government with Kauffman Foundation, D&B most notable from private sector Some answer to most questions can be found with sufficient investigation

14. Data Challenges Study of Entrepreneurship teaches us about “creative destruction” Never ending seeking of better products and services Providing data is similar: –Users always ask new questions –Users always want to follow new ideas and want data/information to aid in this

15. Number of Openings/Births

16. Employment of Openings/Births

17. Business Survival

18. Survival by Industry

19. Next Steps We will expand this to cover other international sources Include more detailed data definitions and examples of the resulting data Develop a profile of how each data element and data source is used to answer questions

20. More Next Steps Look for opportunities to: –Contact more users (state and local) –Merge existing data into more useable formats –Expand on existing sources –Identify gaps –Seek new collections to augment and fulfill gaps Look to List of Potential Entrepreneurship Indicators (see Davis)