ii workshop on entrepreneurship statistics. 17-18 november 2008 system of indicators on...

II Workshop on Entrepreneurship Statistics. 17-18 November 2008

System of Indicators on Competitiveness & Entrepreneurship

in Andalusia


Index

1. Background

2. Project

3. Theoretical Framework

4. Quality Assesment Framework

5. Indicator evaluation & selection

6. Implementation & Next Steps

System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA -

1. Background

Planification of Public Statistics in Andalusia

1. The Statute of Autonomy of Andalusia is the basic regulation for the regional self-government. In its article 76.3 the Statute states the following “....the exclusive competence related to statistics for the Community objectives, the planification of statistics, the development, management and organization of its own statistical system corresponds to the Autonomous Comunity...”

2. The 4/1989 Law of statistics for the self-governing Community creates the Regional Institute of Statistics (IEA) and establishes that an Andalusian Statistics Plan will systemize the statistical activity exclusive to Andalusia as a compulsory framework for the development of such activity. The Law also states: “...one of the functions of the Regional Institute (IEA) will be to urge and encourage statistical research in order to increase the awareness of the social and economic situation in Andalusia.





• Law 6/1993 of the 1993-1996 Plan

• Law 4/1998 of the 1998-2001 Plan

• Law 8/2002 of the 2003-2006 Plan

• Law 4/2007 of the 2007-2010 Plan

• Each Plan lasts four years

• Developed by annual statistical programmes



Statistical Plan of Andalusia 2007-2010

Preferential lines of action

Statistics related to:

ImmigrationInnovation and businesses

Quality of education Recent evolution of economic

indicatorsCulture

Statistical information needs

General statistical objectives

Specific statistical objectives

1. Productive structure

2. Social changes

3. Entrepreneurial network

4. Labour market

5. Information society and R+D

6. Environment and territory

7. Planification and assesment of politics and public services


To create resource and capacity indicators that influence the

competitiveness of the businesses that shape the Andalusian entrepreneurial network



• Statistical projects: all activities which aim to develop the initial phase of the process leading to a statistical operation

• Statistical operations: they are the typical activities of the Statistical System. They respond to a need for information, with a suitably documented methodology (through a technical project) and they have a diffusion product associated with a fixed calendar

• Diffusion activities: all the actions of which the objectives are the design and introduction of strategies and products for the circulation of statistics

• Instrumental activities: their purpose is to develop and introduce statistical infrastructures, tools and methodologies

Types of statistical activities




2. Project


Introduction

The System of indicators on competitiveness and entrepreneurship in Andalusia – SICIEA – (first published today in the IEA internet website) has been carried out in two phases during the last three years by the Andalusian Statistics Institute in collaboration with a group of researchers from different universities, coordinated by the Department of Economics and Statistics at the University of Huelva. The main objective of the project was to encompass the viability, content and scope of a system of regional entrepreneurial competitiveness indicators, followed by the implementation of the system as an IEA statistical operation and also the proposal of its improvement through the exploitation of existing statistics and surveys or the design of new ones.

With the current project, the IEA shares aims with a small group of pioneering institutions which are also creating systems of entrepreneurial indicators. We have to stress that this is one of the first attempts with these features both within a self-governing region and even at the regional level throughout Europe. This results in an additional challenge, since territorial disintegration of indicators implies an added obstacle.



Preferential lines of action

Innovación y EmpresaInnovation & businesses

Tejido empresarial andaluzEntrepreneurial network

Productivity and competitiveness

Project IEA-University of Huelva

System of indicators on Competitiveness & entrepreneurship

2005/06+

Implementation ofSICIEA & new

statistical operations2007/08



Objectives

• To fix the state of economic analysis on entrepreneurship• To determine information needs• To design a theoretical/conceptual framework• To identify the existing statistical information• To make an inventory of the available indicators which could potentially capture the considered dimensions• To assess the quality of the potential indicators and select those resulting from a set of minimum requirements• To summarize, configurate and implement SICIEA as an IEA statistical operation • To design strategies to cover the gaps and improve the System• To facilitate the participation of the IEA in international projects


Conceptual framework

Dimensions

Inventory of indicators

Assesment

Selection

Implementation

Gaps


Phases and outputs



3. Theoretical Framework (Background)

Facts

• Increasing demand on Entrepreneurship Statistics

• Current status of Statistics related to entrepreneurship

• No consolidated theory nor research paradigm on this topic




System of indicators vs Set of indicators Statistical Information System

• Need a theoretical framework

• Identifies dimensions and aspects relevant to entreprenurship activity

• Determines avilability/deficit of indicators to measure those dimensions

• Organized & Targeted Statistical Operations




Competitiveness vs entrepreneurship

• Widespread indicator systems focus on competitiveness as central/key element.

• Systems focused on entrepreneurship present its contribution to employment, competitiveness, growth or innovation level as a result or consequence from entrepreneurship interaction with other markets

• The latter system includes both perspectives, and highlighting the word entrepreneurship or competitiveness would be more a terminological issue




A framework which is nourished by current studies and international ongoing experiences.

Combining academic progress and practical requirements

Based on the analysis of the Entrepreneurial factor as with other productive factors

Entrepreneurial factor market where demand and supply Entrepreneurial factor market where demand and supply matches resulting in a Entrepreneurial activity level, a matches resulting in a Entrepreneurial activity level, a specific productive structure, employment & innovation specific productive structure, employment & innovation level, economic results...level, economic results...




Entrepreneurial function deals with:

• Decreasing inefficiencies in the firm.• Identifying profit opportunities continuously appearing/ rising in the market• Facing uncertainty• Innovating

Those agents developing any of the entrepreneurial Those agents developing any of the entrepreneurial functions above mentioned arefunctions above mentioned are considered considered entrepreneurial factorsentrepreneurial factors, , regardless of the success regardless of the success achieved or the link to business propertyachieved or the link to business property




Demand Factors

Supply Factors

Entrepreneurial Activity



3. Theoretical Framework Demand Factors

Domestic Domestic Economic Economic

Environment & Environment & regulationregulation

Profit Opportunities

International Economic

Environment &Market

Openness



3. Theoretical Framework Demand Factors (Profit Opportunities)

Economy

Market Openness

Orientation towards foreign trade

Financial Integration

Market Regulation

Entry Barriers

Knowledge Transfer

Protection System of Innovation Rights

Regulated SectorsEconomic Environment

International

Domestic

Technology Diffusion



3. Theoretical Framework Supply Factors

Institutions Opportunity Costs

Socio & Psychological

FactorsDemographics

Enterpreneurial Human Capital

Productive Factors Mobility



3. Theoretical Framework Supply Factors (Institutions)

Regulation

Labour Market Institutions/Regulations

Financial Market Institutions

Administrative Barriers

Bankruptcy & Debts relief (Chapter 11)

Taxes on capital transfer & capital gains

Rules

Licenses

Firing procedures/Costs

Permanent contracts vs Fixed term

Subsidies

Access to finance

Legal procedures



3. Theoretical Framework Supply Factors (Entrepreneurial Human Capital)

Human Capital Cummulative Process

Voluntary Human Capital Investment/ Formal Education

Non Formal/Involuntary Human capital Investment

Externalities

Tenure/Experience

Learning by exporting

Social capital

Learning by doing

Entrepreneurial Culture



3. Theoretical Framework Supply Factors (Productive Factors Mobility)

Capital Market Labour Market

Communication

Transport

Infrastructures

Productivity

Wages & Salaries

Professional Human CapitalExternal Finance source

Credit

Financing costs

Guarantees

Stock market

Venture capital

Internal Finance source



3. Theoretical Framework Supply Factors(Psycho&Sociological Factors)

Psychological Factors

Ethnic groups/Migration

Entrepreneur social Image

Sociological Factors

Risk perception/Profile

Motivation & Attitudes



3. Theoretical Framework Supply Factors (Opportunity Costs)

Taxes & Social Security

Taxes

Social Security Contributions & Incentives

Other & Incentives

Corporate & Capital Income

Wage & Salary Income



3. Theoretical Framework Supply Factors (Demographics)

Individual

Family structure

Marital sorting by occupation

Family

Gender

Age

Ancestors

Marital Status

Size



3. Theoretical Framework Entrepreneurial Activity

Success

Stock

Results

Flow



3. Theoretical Framework Entrepreneurial Activity

IndividualsBusiness

Success

Stock

FlowExit/DeathsEntry/Births

GrowthSurvival

Results

Financial ResultsCompetitivenessInnovationEmployment



Availability level/Deficit of indicators by dimension

347 indicators

Factores de ofertaDemanda

Movilidad factores

Capital Humano

Característ. individuales

Costes e incentivos

Factores socio /

sicológicos

InstitucionesStock Flujo

Actividad Empresarial

Oportun. Bº

Output

Entorno

(33)

Regulación

(5)

Apertura

(10)

Difusión tecnológica

(19)

Stock

(10)

Capital

(6)

Trabajo

(29)

Infraestructura

(4)

Impuestos

(14)

Empresarios

(6)

Empresas

(12)

Empresarios

(2)

Éxito

Empresarios

(7)

Empresas

(8)

Inversión voluntaria

(11)

Inversión involuntaria

(18)

Característ. personales

Característ. familiares

Seguridad Social

(8)

Factores sociológicos

(4)

Factores sicológicos

(5)

Mercado de Capital

(1)

Mercado de Trabajo

(21)

Trabas administrativas

(11)

Empleo

(18)

Resultado

(55)

Competitividad

(4)

Innovación

(16)

Empresas

(10)

Supply FactorsDemandDemand

FactorsMobility

HumanCapital

Demo graphics

CostsIncenti

Psycho& SocioFactors

Institutions

Stock Flow

Actividad EmpresarialEntrepreneurial Activity

Oportun. Bº

ProfitOpport

Output

Entorno

(33)

EconEnviro.

Regulación

(5)

Regulation

Apertura

(10)

Openness

Difusión tecnológica

(19)

Tech.diffusion

Stock Capital

Labour

Infrastructure

Taxes Individual

Enterprises

Individual

Succes

Individuas

Enterprises

FormalEducation

Non form.Investment

Individual

Family Social Security

Psychology

Socio logy

CapitalMarket

LabourMarket

Admin.Barriers

Employment

Financ.Results

Competitiveness

Innovation

Enterprises





To evaluate & select systematically the most adecuate indicators to build the system, the quality assesment Framework needs to:

• be suitable for a wide range of indicators

• focus on characteristics easily measurable from available information

• evaluate key features of the system such as geographical comparability


Quality Assesment Framework

Criteria

Relevance Accuracy Availability




Criteria


Qualitative Assesment

Proxy vs Direct indicator





Criteria


Data Collection Method

Cross Country Comparability





Criteria


Availability across OECD countries

Availability at regional level



Availability over time

Regularity





Quality Assesment Report



Indicators selection by dimension and aspect


Movilidad factores

Capital Humano


Costes e incentivos

Factores socio /

sicológicos



Oportun. Bº

Output

Stock

(10) (6)

(29)

(4)

(14) (6)

(12)

(2)

Éxito

(7)

(8)(11)

(18)

. Social

(8)

(4)

(5)

Capital

(1)

Trabajo

(21)

Trabas

(11)

(18)

(55)

(4)

(16)(10)


FactorsMobility

HumanCapital

Demo graphics

CostsIncentive


Institutions

Stock Flow


Oportun. Bº

ProfitOpport.

Output

(33)

Econ.Enviro.

(5)

Regulation

(10)

Openness

(19)

Tech.diffusion

Stock Capital

Labour

Infra structure

Taxes Individual

Enterprises

Individual

Success

Individual

Enterprises

Formal Educ ation

Non form Invest- ment

Individual


Psychology

Socio logy

CapitalMarket

Labour Market

Admin. Barriers

Employment

Financ.Results

Competitiveness

Innov ation

Enterprises





Implementation of the system synthesis:

Entrepreneur family characteristics, family size, marital status, family relatives being enterpreneur...

Success from individuals/entrepreneurperspective

• Need to solve empty dimensions

• Design & make it accesible through internet

Flow from individuals/entrepreneurperspective


http://www.juntadeandalucia.es:9002/indcomp/index.htm


Indicators selection by dimension and aspect

101 indicators


Movilidad factores

Capital Humano


Costes e incentivos

Factores socio /

sicológicos



. Bº

Output

Stock

(10) (6)

(29)

(4)

(14) (6)

(12)

(2)

Éxito

(7)

(8)(11)

(18)

. Social

(8)

(4)

(5)

Capital

(1)

Trabajo

(21)

Trabas

(11)

(18)

(55)

(4)

(16)(10)


FactorsMobility

HumanCapital

Demographics

CostsIncentiv


Institutions

Stock Flow


Oportu. Bº

ProfitOpport

Output

(33)

Econ.Enviro.

(5)

Regulation

(10)

Openness

(19)

Tech.diffusion

Stock Capital

Labour

Infrastructure

Taxes Individual

Enterprises

Individual

Success

Individual

Enterprises

FormalEducation

Non formInvestment

Individual


Psychology

Sociology

CapitalMarket

LabourMarket

AdminBarriers

Employment

Financ.Results

Competitiveness

Innov ation

Enterprises








Next Steps for an extended and improved indicatorSystem:

Enterprises stock, success & flow

Individual/ Entrepreneur profile, flow & success

• Investigate those dimmensions showing info deficits

Capital Market & Access to finance

• Work on comparability Issues

Economic Sentiment/Business Surveys

Regulation & Admin Barriers from a regional view


ii workshop on entrepreneurship statistics. 17-18 november 2008 system of indicators on...

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