In my final post of 2013, I summarize my top of mind developments in the world’s entrepreneurship data chest. Next year will herald a new era in evidence-based programming and policymaking as practitioners and policymakers alike—now committed to new firm formation—demand better data and analysis around what entrepreneurship promotion efforts are working and what is hype.
I know few of you plan to comb through entrepreneurship data and analysis over the holidays but the following summary might be helpful to all of us as we embark upon a renewed effort in 2014 to fill the gaps in what we can tell those who are eager to help founders start and scale new firms. This list is by no means comprehensive but rather what was most visible to me as a global observer and commentator. Please let me know what I missed.
To drive discussion at President Obama’s global conference in Kuala Lumpur, the Kauffman Foundation put together International Entrepreneurship and Innovation Scorecards: Examining the Data, a report that reviews popular international indices and indicators and presents an exploratory and preliminary way of distilling them. The authors provide a useful snapshot of selected national entrepreneurship ecosystems by compiling a targeted set of complementing indicators and present them as scorecards that visually reveal areas of weakness and inconsistencies – something we might all note in our efforts to figure out what we should know in 2014.
Entrepreneurship at a Glance 2013
A product of the OECD-Eurostat Entrepreneurship Indicators Programme, this third issue presents up-to-date, comparable indicators for measuring the state of entrepreneurship along with key policy considerations. This year’s edition also features a special chapter on the profile of the entrepreneur.
Science, Technology and Industry Scoreboard 2013
This year’s OECD Science, Technology and Industry (STI) Scoreboard report revealed that over a sample of sixteen economies, young firms (ages 5 or less) represented 24% of all patenting firms and applied on average for 12% of patents. Overall, the 260 indicators in the STI Scoreboard can help guide governments in designing more effective and efficient policies.
Who Works for Startups?
Research from the UNC Kenan-Flagler Business School at the University of North Carolina at Chapel Hill brought fresh perspective to the importance of entrepreneurship to combat youth unemployment. The study Who Works for Startups? The Relation Between Firm Age, Employee Age, and Growth found that younger workers are more important to young firms than more established firms. For example, around 70% of employees in young firms (ages 1-5) are under the age of 45. However, in established firms (ages 20 and above), almost half of employees are over the age of 45. Moreover, young employees at young firms earn higher wages than young employees in older firms.
The State of Entrepreneurship - Financing Entrepreneurial Growth
Right at the beginning of the year, the Kauffman Foundation offered recommendations from leading experts on how policymakers can help increase startup financing. Its State of Entrepreneurship address offers specific action steps in areas ranging from IPOs to crowdfunding.
City-level startup data and policy recommendations
City leaders also need startup data. The Kauffman Foundation’s new paper titled The Most Entrepreneurial Metropolitan Area? shows the first-ever analysis of United States federal government data on business startups at the metropolitan area level. A second paper, How Cities Can Nurture Cultural Entrepreneurs, offers seven strategies that mayors and city council members may champion to foster creative entrepreneurs.
G20 Entrepreneurship Barometer 2013
For this second edition of the Entrepreneurship Barometer, Ernst & Young (E&Y) based its analysis and rankings on five key inputs: 1) business environment indicators for G20 countries; 2) a survey of more than 1,500 leading entrepreneurs across the G20 countries, aimed at capturing the sentiment on key barriers and enablers of entrepreneurship; 3) insights from more than 250 entrepreneurs, independent academics and E&Y partners across the G20 countries; 4) workshops with delegates from the G20 Young Entrepreneurs Alliance Summit; and 5) an analysis of more than 200 leading government initiatives or practices from across the G20 countries.
Perceptions of Young Innovative Entrepreneurs
This Accenture report, Entrepreneurial Innovation: How to unleash a key source of growth and jobs in the G20 countries, presents survey results from 1,000 business owners in the G20 countries aged forty or younger. Interestingly, 76 percent of them are confident that they are the major source of technology innovation in their countries. Survey participants also revealed strong growth and job creation expectations for the near future. Based on the input from participants, the report suggests a three-pronged strategy for improving the environment for innovative entrepreneurs.
GEW Policy Survey
For the second year, Global Entrepreneurship Week (GEW) and the Ewing Marion Kauffman Foundation carried out a survey revealing entrepreneurs’ perceptions of policies and other resources. More than 2,000 respondents from across 109 countries responded to 12 statements about their experiences in the areas of regulation, access to resources and entrepreneurial environment. The survey also gathered respondents' demographic information, including whether they currently owned a business or planned to start one in the next year.
Strategies for Scaling Up
Published by the World Economic Forum (WEF) in collaboration with Stanford University, E&Y and Endeavor, the Entrepreneurial Ecosystems Around the Globe and Company Growth Dynamics report presents results from a global survey over 1,000 entrepreneurs aimed at better understanding how successful entrepreneurial companies accelerate access to new markets and scale to high growth. The report includes case studies from different geographical regions that reflect the impact economic policies can have on entrepreneurs.
The Sharing Economy
WEF’s Young Global Leaders Circular Economy Innovation and New Business Models Dialogue seeks to place the sharing economy on the global agenda. The report identifies the history, characteristics and successful models of the sharing economy, as well as challenges. Finally, the report offers recommendations for leaders in the business and public sector leaders throughout the world.
Intellectual Property Rights in the Global Creative Economy
This WEF-led study explores how technology and globalization are reshaping the way we create, distribute and access content. The paper is intended to help everyone with an interest in the IP system, including policymakers.
Europe’s Entrepreneurship Drivers
In Global Growth Company CEO Workshop: Innovation, Entrepreneurship and Global Growth, WEF reports the results of a London meeting of entrepreneurs, fast-growth companies leaders and policy experts held in April 2013. Convened to debate how to strengthen Europe’s competitiveness, 44 delegates from 14 countries concluded that there are six important drivers impacting entrepreneurship in Europe, and they are summarized in this report.
In addition, new editions of annual reports, such as the World Bank’s Doing Business Report (plus a special regional edition of Doing Business in the East African Community 2013) and the Index of Economic Freedom are also sources of fresh data analysis.
In 2014, we will see much more to come. The Global Entrepreneurship Congress (GEC) now dedicates the whole of its first day’s sessions to research and policy. Researchers will seek to communicate with ministers and policy advisors alike about helping them to better measure the impact of their efforts to support new firms. This kind of collaboration between researchers and those investing resources into promoting entrepreneurship will help strengthen every entrepreneurial community.
On the research side, heavyweights such as the World Bank, the Kauffman Foundation, the Rockefeller Foundation and Endeavor Insight will launch the Global Entrepreneurship Research Network heralded by President Barack Obama several weeks ago. With its inaugural meeting set for March 16-17, 2014, at the GEC in Moscow, the research network offers to foster greater cohesion and efficiency among the world’s major entrepreneurship research funders. I hope you will join us.
PDE will return on January 6, 2014. Happy Holidays!
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