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Evidence based policy on entrepreneurship in the UK

Evidence based policy on entrepreneurship in the UK. Ian Kay, 5 December 2006 Small Business Service (SBS), an agency of the DTI. UK / England.

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Evidence based policy on entrepreneurship in the UK

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  1. Evidence based policy on entrepreneurship in the UK Ian Kay, 5 December 2006 Small Business Service (SBS), an agency of the DTI

  2. UK / England DTIsets some laws which apply to all 60 million people in UK; but within DTI, SBS only sets entrepreneurship policyfor the 50 million in England Entrepreneurship policy outside England is set by: • Scottish Executive • Welsh Assembly Government • Department of Trade, Enterprise and Investment Northern Ireland

  3. How will we measure success? Statisticians, researchers and economists discussed with our customers who decide government policy: • What does success look like? • How will we know if we are achieving our goals?

  4. Where will we get the data from?

  5. Design new data collection Annual Small Business Survey • ~8,000 telephone interviews with owner/managers of businesses from 0 to 249 employees • Stratified random sampling from Dun & Bradstreet, weighted to represent UK SMEs • Can split by industry, employment, geography, turnover, age, if part-time, sex, ethnicity, disability, urban / rural, rich / poor district

  6. An offer to share survey results • Questionnaires and results • at www.sbs.gov.uk/asbs • Over 200 questions How many people do you currently employ? How many did you employ 12 months ago? How many do you expect to employ in 12 months’ time? Does your business sell outside the UK? Have you tried to obtain finance? How much? What for? Did you have a difficulties? Do you aim to grow your business? Why / why not? Is your business a family-owned business?

  7. Problems we still face:Longitudinal or cross-sectional? • Cross-sectional survey better at measuring absolute value? • Longitudinal survey better at measuring change? • Longitudinal surveys can contaminate some measures • If two surveys ask the same person “Have you used this website”, the second survey will show higher usage

  8. Problems we still face:Discontinuities • Contractor introduced ‘helpful’ wording to focus the mind of the interviewee • But this made previous results inconsistent

  9. Problems we still face:Overall assessment Which is better: • Increasing the proportion of businesses seeking advice from 60% to 65%; • or increasing the proportion of businesses that innovate from 30% to 35%? Perhaps economic growth is the only thing that counts as success – but this takes time

  10. Ian Kay Assistant Statistician DTI Small Business Service ian.kay@dti.gsi.gov.uk +44 (0)114 279 4439

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