Entrepreneurship Indicators Project Developing Comparable Measures of Entrepreneurship and the Facto

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

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Entrepreneurship Indicators Project

• Background
• Fundamental Aims of the Project
• Definition and Measurement Issues
• Comparing Some Existing Measures

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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

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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

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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

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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?

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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

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