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Research

Early-Stage Entrepreneurship: Some Key Indicators and a Summary Index

Entrepreneurship is a process and a series of dynamic steps, rather than a binary or static outcome. To provide more granular insights into the early stages of entrepreneurship, we elaborate on four indicators and a summary index capturing different dimensions of entrepreneurial activity within the population and within new businesses.

The four early-stage entrepreneurship indicators:

  • Rate of new entrepreneurs: the percentage of the adult, non-business owner population that starts a business each month.
  • Opportunity share of new entrepreneurs: the percent of the total number of new entrepreneurs who were not unemployed and not looking for a job as they started the new business.
  • Startup early job creation: the total employment created by new employer firms in their first year for every 1,000 people, meaning that it is a measure of average first year job creation by a startup, and it is comparable across time and by geography.
  • Startup early survival rate: the percentage of new employer establishments that are still active after one year of operation.
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