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Kauffman Firm Survey. Tim Davis Entrepreneurship Indicators Project OECD ISTAT-Eurostat-OECD Seminar on Entrepreneurship Indicators Rome, December 6 and 7, 2006. 1. Background The Kauffman Foundation. Large American Foundation Based in Kansas City, USA
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Kauffman Firm Survey Tim Davis Entrepreneurship Indicators Project OECD • ISTAT-Eurostat-OECD Seminar on Entrepreneurship Indicators • Rome, December 6 and 7, 2006 1
Background The Kauffman Foundation • Large American Foundation • Based in Kansas City, USA • Established by Ewing Kauffman: Successful entrepreneur • Missions: - Advancing Entrepreneurship - Improving education of children & youth • Strong supporter of entrepreneurship research and data • Headed by Carl Schramm • Recent new entrepreneurship book by Schramm: “The Entrepreneurial Imperative: How America’s Economic Miracle Will Reshape the World (and change your life)” Tim Davis, Statistics Directorate, OECD
The Kauffman Firm Survey Purposes of the Survey • Understand challenges of owning/operating a new business • Understand the factors of success for businesses • Focus on financial development during first four years • Characteristics of business and owners as well as detailed information on financing of start-up and operations • Inform policy decisions and academic research • Create a publicly-available data set Tim Davis, Statistics Directorate, OECD
Methodology • Longitudinal survey Target population • New businesses started in 2004; still operating • Not a Branch, subsidiary or inherited • Excludes not-for-profits • Must locate original entrepreneur • Interview terminates if original entrepreneur not available Tim Davis, Statistics Directorate, OECD
Methodology • Sample : - 5,000 companies; From Dun and Bradstreet list - Over sampled “High Tech”(3,000 firms) • Numerous screening questions to ensure eligibility • Questions Re: taxes, administrative and legal status • Total of ~90 Questions • Includes interviewer flow questions • KFS poses questions for EACH owner Tim Davis, Statistics Directorate, OECD
KFS: Questionnaire Modules • Introduction/Identify “original entrepreneur”: 10Q • Eligibility Screening: 13Q • Business Characteristics: 8Q • Strategy and Innovation: 7Q • Business Organisation and HR Benefits 3Q • Business Finances 31Q • Work Behaviours and Demographics of Owners 11Q • Tracing or Follow-up Questions 7Q • Information Obtained by Observations 1Q Tim Davis, Statistics Directorate, OECD
Comparison Categories:KFS vs. FoBS • Methodology • Entrepreneur’s Profile • Business Characteristics/Environment • Business Strategy and Innovation • Financials Tim Davis, Statistics Directorate, OECD
Methodology Tim Davis, Statistics Directorate, OECD
Entrepreneur’s Profile Tim Davis, Statistics Directorate, OECD
Business Characteristics/Environment Tim Davis, Statistics Directorate, OECD
Business Characteristics/Environment Tim Davis, Statistics Directorate, OECD
Business Strategy and Innovation Tim Davis, Statistics Directorate, OECD
Financials Tim Davis, Statistics Directorate, OECD
KFS Financials • Did owners money buy shares? How much? How many? • How much equity from each source? • Ownership share for each equity source? • Owners’ use of debt sources? Which sources? • Credit line? Credit card balance? How often? Amount? • Business use of debt sources? Same questions… • Amounts obtained by business from other debt sources • Did business purchase “on account”? (deferred payment) • How much was purchased on account? Tim Davis, Statistics Directorate, OECD
Survey Results • KFS results, and analytical overview, expected in February 2007 • Release through Kauffman Web Site and other channels • Eurostat has published aggregated data on its Web Site • “Statistics in Focus” Bulletin also published Tim Davis, Statistics Directorate, OECD