Entrepreneurship Indicators: Employer Business Demography and High-Growth Enterprises in Europe

1. Entrepreneurship Indicators:Employer Business Demographyand High-Growth Enterprises in Europe Wiesbaden Group on Business Registers Session 6a, 26/11/2008 Hartmut Schrör, Eurostat hartmut.schroer@ec.europa.eu

2. Business demography: legal basis • New Parliament and Council Regulation 295/2008 • Annex IX on Business Demography • Coverage of employers and non-employers, no threshold • Continued demand for data covering the whole business population => We now have a legal basis, but it does not cover the commonly agreed… Entrepreneurship, ‘employer business demography’ and high-growth enterprises

3. Entrepreneurship Indicators • Business demography based on employers only • Better comparability across countries • Better focus on units that are economically significant • But 1/3 to 1/2 of the business population are excluded • High growth enterprises and gazelles • These are the core indicators on entrepreneurial performance Entrepreneurship, ‘employer business demography’ and high-growth enterprises

4. Difference HDC vs EBD • Harmonised data collection • No size threshold, coverage of non-employers • Separate size class “0 employees” • Births in “0 employees” not counted as employer births if they become employers later • Employer business demography • At least 1 employee at any time of a year • Lowest size class “up to 4 employees” • 2 types of birth / death • Paid employee(s) in year of HDC birth / death • Entry by growth / exit by decline Entrepreneurship, ‘employer business demography’ and high-growth enterprises

5. High growth enterprises • Provisional definition • 20% average annualised growth over a three year period • Measured in employment or turnover • Gazelles: up to 5 years old • Possible extension in the future: gazelles = up to 8 years old Entrepreneurship, ‘employer business demography’ and high-growth enterprises

6. Publications • Eurostat-OECD Manual on Business Demography Statistics (2007) http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-RA-07-010/EN/KS-RA-07-010-EN.PDF • Statistics in Focus “Business Demography in Europe: employers and job creation” (no. 100/2008)http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-SF-08-100/EN/KS-SF-08-100-EN.PDF Entrepreneurship, ‘employer business demography’ and high-growth enterprises

7. Birth rates for 14 EU countries (NACE C to K, 2005)EBD, HDC, HDC except "size class 0" Entrepreneurship, ‘employer business demography’ and high-growth enterprises

8. Birth rates: “EU 14” (2005) vs United States (2004)NACE C to K Entrepreneurship, ‘employer business demography’ and high-growth enterprises

9. Employer birth rates by employee size class Entrepreneurship, ‘employer business demography’ and high-growth enterprises

10. Number of births (2005): HDC vs EBD Entrepreneurship, ‘employer business demography’ and high-growth enterprises

11. Share of high growth enterprises (%)10 or more employees, NACE C to K, 2005 Entrepreneurship, ‘employer business demography’ and high-growth enterprises