Nordic Council of Ministers
Nordic Entrepreneurship Monitor 2010 - summary of tentative findings
Glenda Napier Manager of Policy Analysis Email:
[email protected]
Monday, 07 June 2010
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Why do we study entrepreneurship?
Nordic Council of Ministers
New jobs tend to be created in younger firms (Haltiwanger, 2010).
The majority of top-performing firms in the USA are younger than 5 years.
Irrespective of size, young firms contributed to approx. 43% of all USA gross job creation in 2005 (U.S. Census Bureau and Kaufmann Foundation, 2010).
The top 1% of young firms generates roughly 40% of new jobs (U.S. Census Bureau and Kaufmann Foundation, 2010).
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Nordic Entrepreneurship Monitor
Nordic Council of Ministers
International Entrepreneurship Benchmark System Analysis based on composite indicators Six indicators for entrepreneurship performance Approx. 80 indicators for entrepreneurship framework International comparable data from sources such OECD, Eurostat, World Bank.
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Nordic Entrepreneurship Monitor
Nordic Council of Ministers
1. Entrepreneurship performance i.e. firm formation and firm growth 2. Entrepreneurship framework conditions 3. Nordic policy recommendations
Entrepreneurship Framework
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Entrepreneurship Performance
Wealth Creation
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Policy areas with influence on entrepreneurship Regulatory framework
Market conditions
Access to finance
Creation and diffusion of knowledge
Entrepreneu rship capabilities
Entrepreneu rship Culture
Administrative burdens
Anti-trust law and competition
Access to debt finance
R&D activities
Access to venture capital
Transfer of noncommercial knowledge
Business and entrepreneu r-ship education
Entrepreneu r-ship among managers
Bankruptcy regulations Labour regulations Court and legal framework
Foreign markets Degree of public involvement
Stock markets
Technology availability and take-up
Immigration
Image of entrepreneurs Desirability of becoming self-employed
Income taxes
Risk
Business and capital taxes
Self-employment preferness
Patent systems; standards Monday, 07 June 2010
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Findings: Entrepreneurship performance and framework conditions
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High Nordic start-up rates, but a Nordic growth challenge
Nordic Council of Ministers
Firm entry indicators 1.
Enterprise births (Eurostat/OECD), 2006
2.
New firms with minimum one employee (OECD), 2006
3.
New firms with minimum one employee (OECD), 2009
Growth indicators
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Gazelles (OECD), 2006
2.
High-growth firms (OECD), 2006
3.
High-growth firms (ICE), 2003-2005
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Varying entrerpreneurship performance across the Nordic countries
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Overall competitive Nordic framework conditions for entrepreneurship
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Nordic strengths
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Nordic challenges
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Similarities and differences across the region
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Denmark 2004-2009
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Finland 2004-2009
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Iceland 2004-2009
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Norway 2004-2009
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Sweden 2004-2009
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Entrepreneurship policy seems to matter
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Entrepreneurship policy matters
Nordic Council of Ministers
Note: The chart shows the correlation between the countries ' overall entrepreneurship framework conditions and performance. R2 - the expression of how large a share of performance that can be explained by framework conditions - is 0,10. The time lag between performance (2009) and framework (2004) exists as the effect of policies takes time.
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Key learning points
Nordic Council of Ministers
1. 2. 3. 4.
A strong Nordic start-up rate Nordic growth challenge Varying performance across the Nordic countries There have been major improvements in Nordic framework conditions in recent years 5. Entrepreneurship policy seems to matter
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Nordic Council of Ministers
Policy recommendations (Nordic)
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Policy recommendations I
Nordic Council of Ministers
Sharpening the Nordic Entrepreneurship policy debate and facilitate policy learning and exchange of best/worse practices across the Nordic countries 1. Create a Nordic entrepreneurship policy forum 2. Organize workshops for practitioners to enhance policy learning about how to use the existing framework conditions for entrepreneurship 3. Organize workshop for policymakers for how to improve the existing framework conditions and/or develop new framework conditions
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Policy recommendations II
Nordic Council of Ministers
Strengthening the Nordic entrepreneurship infrastructure in order to address the Nordic growth challenge 1. Create new and better knowledge about growth firms and what they require in terms of framework conditions 2. Collect best practice and knowledge about growth programmes and initiatives in those Nordic countries where they exist today 3. Introduce a common Growth programme in the Nordic countries
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Policy recommendations III
Nordic Council of Ministers
Fill the Nordic knowledge gap on entrepreneurship and enhance Nordic entrepreneurship analysis and data 1. Improve knowledge about the disproportionate contribution by growth-entrepreneurs across the Nordic countries 2. Create better statistical data on growth firms in the Nordic countries 3. Continue the international benchmarking of entrepreneurship by building on the Nordic Entrepreneurship Monitor
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Nordic Council of Ministers
Thank you!
Glenda Napier Manager of Policy Analysis
[email protected]
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