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Measuring entrepreneurship - the European approach

This workshop discusses the European approach to measuring entrepreneurship, focusing on indicators such as birth/death rates, survival rates, and the effects on employment. It also explores the dissemination of data and potential future topics for measurement, including factors of business success and profiling of entrepreneurs.

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Measuring entrepreneurship - the European approach

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  1. Measuring entrepreneurship - the European approach OECD Entrepreneurship Indicators Project Expert Workshop 26-27/10/2005 Peter Bøegh Nielsen, Hartmut Schrör European Commission (DG MARKT, Eurostat)

  2. The European Enterprise Demography Project • Justification: The Lisbon programme: • The recognised need to foster more entrepreneurial drive in Europe • Context: Almost starting from scratch • No harmonised European data • Only few national experiences • Phase 1: Launching a pilot survey to produce structural data • Phase 2: Mandatory data collection

  3. Business demography Project: Variables and indicators • Birth / death rates as indicators of economic dynamism • Survival rates as indicators of start-up success • Effects of enterprise birth and death on employment • Growth of surviving enterprises and its effect on employment • Breakdown of these indicators by • Economic activity (NACE 2-3 digit level) • Size class (employees) • Legal form

  4. Business demography - dissemination • Data and publications available free of charge at Eurostat websitehttp://epp.eurostat.cec.eu.int • Reference years 1997 to 2002 • 17 Member States, Norway, Romania

  5. Phase 3: Enlarging the scope to other topics • From measuring start-ups to measuring factors of business success • From enterprise statistics to profiling of entrepreneurs

  6. How to measure Factors of Business Success Figure 1. Survival rates for new enterprises in Denmark 1990 – 2000, 1994 – 2000 and 1998 - 2000

  7. Branch experience having an impact Figure 2. Survival rate for entrepreneurs broken down by branch experience

  8. Can we identify gazelles?

  9. ‘Factors of Business Success’ project • Joint project of DG MARKT and Eurostat with 15 national statistical institutes • Survey of enterprises newly born in 2002 that have survived for 3 years • Common questionnaire, partly based on national experience (DK, FR, IT, PL, SE) • Common recommendations on methodology (sampling, grossing-up etc.)

  10. Elements of the questionnaire • Start-up conditions and profile of the entrepreneur • Motivation for start-up • Financing • Difficulties at start-up • Entrepreneur’s characteristics: education, experience, gender, age, citizenship • Present situation • Employment, turnover • Co-operation, networking • Difficulties developing the enterprise

  11. Elements of the questionnaire • Future plans • Future of the enterprise (continuing, selling, closing down) • Development of employment, turnover, investments

  12. Expected results • April 2006: data delivery to Eurostat • Autumn 2006: publication of results • Autumn 2006: review of project, decision on follow-up project

  13. The road ahead • Focus on special segments: • Gazelles • Innovative start-ups • Spin-offs • Female entrepreneurs • Ethnic entrepreneurs • Future challenge: Ageing entrepreneurs • Facilitating take-overs

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