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OECD/Eurostat Business Demography Indicators Framework

This framework provides a comprehensive set of indicators on business demography, including birth and death rates, survival rates, employment in newly born enterprises, and high-growth enterprises. It aims to improve comparability across OECD countries and ensure consistent treatment of different types of enterprise events.

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OECD/Eurostat Business Demography Indicators Framework

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  1. The OECD/Eurostat Framework on Business Demography IndicatorsNadim Ahmad, Statistics Directorate, OECD

  2. Background • Eurostat database on BD indicators • OECD study investigating comparability of start-up rates • OECD framework to improve comparability in OECD countries (including new indictors) • OECD/Eurostat framework

  3. Indicators • Births and Deaths • Thresholds - All enterprises • Employer enterprises (with turnover) • (Economic) Enterprises with 2+ employees (with turnover) • Consistent treatment of ‘real’ births vis-a-vis reactivations, mergers, take-overs etc

  4. Indicators • Survival Rates • 3 year survival and 5 year survival • An enterprise born in year xx or having survived to year xx from a previous year is considered to have survived in year xx+1 if it is active in terms of turnover and/or employment in any part of year xx+1 (= survival without changes). • Births and deaths follow the measures outlined earlier.

  5. Indicators • Employment in newly born enterprises • Head counts on FTE basis during the period of activity. But, where not possible head counts are acceptable. • Impact of Deaths • Based on average employment during periods of activity in year of death.

  6. Indicators • High Growth • All enterprises with average annualised growth greater than 20% per annum, over a three year period, and with 10 or more employees in the beginning of the observation period, should be considered as high-growth enterprises: measured by the number of employees and by turnover. • Gazelles • All enterprises up to 5 years old with average annualised growth greater than 20% per annum, over a three year period, and 10 or more employees in the beginning of the observation period, should be considered as gazelles.

  7. High-Growth Developments Composite Indicators • Paper develops hybrid Employment-Turnover based measure

  8. High Growth Developments Previous indicators require some convention: growth threshold, size-class cut-off to avoid small firm bias. What about Birch–type Indices to overcome size-class bias? combined with convention that we take the top X% of enterprises in any country as high-growth.

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