Entrepreneurship at a Glance

2018 Highlights

SDD 10 October 2018

OECD

Entrepreneurship at a Glance Highlights 2018

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 1

List of figures

ENTREPRENEURSHIP AND BUSINESS STATISTICS DATABASES 2018 UPDATE 2

1. New enterprise creations, selected countries ....................................... 4 2. Bankruptcies, selected countries .......................................................... 5 3. Share of sectors in employment creation by employer enterprise births6 4. Job creation rate, top sectors ................................................................ 7 5. GDP and number of enterprises ........................................................... 8 6. Number of enterprises by size, business economy .............................. 8 7. Employment by enterprise size class ................................................... 9 8. Value added by enterprise size class.................................................... 9 9. Incidence of traders by size class, industry ........................................ 10 10. Compensation of employees over value added, by enterprise size, manufacturing 11 11. Labour productivity by enterprise size, business economy ............ 12 12. Labour productivity by enterprise size, manufacturing and services13 13. Motivations to set up a business..................................................... 14 14. Use of bank loans for business financing ....................................... 14 15. Venture capital investments as a percentage of GDP .................... 15 16. Trends in venture capital investments ............................................ 15

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 2

ENTREPRENEURSHIP AND BUSINESS STATISTICS DATABASES 2018 UPDATE

This booklet presents a compilation of frequently used graphs on entrepreneurship trends

and SME performance drawn from the OECD Statistics and Data Directorate’s databases of

Structural and Demographic Business Statistics (SDBS), Timely Indicators of

Entrepreneurship (TIE), Trade by Enterprise Characteristics (TEC), Entrepreneurship Finance

Database (EFD), and the Future of Business Survey (FOBS).

Data are updated on a regular basis as follows:

Data source Frequency of OECD update

SDBS National Statistics Offices of OECD member and partner countries; Eurostat

http://dx.doi.org/10.1787/sdbs-data-en

Annual

TIE National Statistics Offices; Companies Offices; countries Courts

http://stats.oecd.org//Index.aspx?QueryId=72208

Quarterly

TEC National Statistics Offices of OECD member and partner countries;

Eurostat

http://stats.oecd.org/Index.aspx?DataSetCode=TEC1_REV4

Annual

EFD National and Regional Venture Capital and Equity Associations Annual

FOBS Facebook-OECD-World Bank online business survey

www.futureofbusinesssurvey.org

Quarterly

The booklet uses ISO codes (ISO3) for country names as listed below.

ARG Argentina LVA Latvia

AUS Australia LTU Lithuania

AUT Austria LUX Luxembourg

BEL Belgium MEX Mexico

BRA Brazil NLD Netherlands

CAN Canada NZL New Zealand

CHL Chile NOR Norway

COL Colombia PER Peru

CZE Czech Republic PRT Portugal

DNK Denmark ROU Romania

EST Estonia RUS Russian Federation

FIN Finland SVK Slovak Republic

FRA France SVN Slovenia

HUN Hungary ESP Spain

DEU Germany ZAF South Africa

IND India SWE Sweden

IDN Indonesia CHE Switzerland

ISR Israel TUR Turkey

ITA Italy GBR United Kingdom

JPN Japan USA United States

KOR Korea VNM Viet Nam

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 3

Access data presented in the booklet via:

www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

Detailed definitions, data sources and methodological notes are available in OECD

Entrepreneurship at a Glance 2017: http://dx.doi.org/10.1787/entrepreneur_aag-2017-en

For more information, contact gueram.sargsyan@oecd.org, liliana.suchodolska@oecd.org,

frederic.parrot@oecd.org

Acknowledgements

Particular thanks for the continued cooperation for data development and compilation go to

Eurostat and to experts in National Statistical Offices from Australia, Austria, Belgium, Brazil,

Canada, Chile, Colombia, the Czech Republic, Denmark, Estonia, Finland, France, Germany,

Hungary, Iceland, Israel, Italy, Japan, Korea, Latvia, Lithuania, Luxembourg, Mexico, the

Netherlands, New Zealand, Norway, Poland, Portugal, Romania, the Russian Federation, the

Slovak Republic, Slovenia, South Africa, Spain, Sweden, Switzerland, the United Kingdom

and the United States; to Laura McGorman from Facebook and Joshua Seth Wimpey from the

World Bank for the joint effort on the Future of Business Survey; and to Cornelius Mueller

and Ariane Mortelmans from Invest Europe, Darrell Pinto from the Canadian Venture Capital

and Private Equity Association (CVCA), Lauren Salerno from PitchBook and Maryam Haque

from the National Venture Capital Association (NVCA) of the United States who provided

substantive input and advice on equity capital statistics.

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 4

New enterprise creations

New enterprise creations (including sole-proprietors) continued to increase from their crisis

lows in nearly all OECD countries, with record highs achieved in around half. In Australia,

France and the United Kingdom creations in recent years have been running at twice the

levels of two-decades earlier.

1. New enterprise creations, selected countries

Index: Number of new creations in 2012=100

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

0

20

40

60

80

100

120

140

160

180

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2007

2009

2011

2013

2015

2017

2007

2009

2011

2013

2015

2017

2001

2003

2005

2007

2009

2011

2013

2015

2017

2007

2009

2011

2013

2015

2017

2001

2003

2005

2007

2009

2011

2013

2015

2017

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

AUS AUT BEL CAN DEU DNK ESP

0

20

40

60

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100

120

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160

180

1995

1997

1999

2001

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2007

2009

2011

2013

2015

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2015

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2003

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2015

2017

2001

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2017

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2007

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2013

2015

2017

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

2016

FIN FRA GBR HUN ISL ITA JPN

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20

40

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100

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160

180

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

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2009

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2015

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2011

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2015

2011

2013

2015

2017

2011

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2015

2017

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

NLD NOR NZL PRT RUS SWE TUR USA

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 5

Bankruptcies

Bankruptcies have declined in nearly all OECD countries in recent years.

2. Bankruptcies, selected countries

Index: Number of bankruptcies in 2012 = 100

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

0

20

40

60

80

100

120

140

160

180

199

92

001

200

32

005

200

72

009

201

12

013

201

52

017

200

92

011

201

32

015

201

72

003

200

52

007

200

92

011

201

32

015

201

72

005

200

72

009

201

12

013

201

52

017

200

12

003

200

52

007

200

92

011

201

32

015

201

72

005

200

72

009

201

12

013

201

52

017

BEL BRA DEU ESP FIN ISL

All legal forms

0

20

40

60

80

100

120

140

160

180

200

1

200

3

200

5

200

7

200

9

201

1

201

3

201

5

199

9

200

1

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7

ITA NLD NOR SWE ZAF

0

20

40

60

80

100

120

140

160

180

199

92

001

200

32

005

200

72

009

201

12

013

201

52

017

200

72

009

201

12

013

201

52

017

199

92

001

200

32

005

200

72

009

201

12

013

201

52

017

199

92

001

200

32

005

200

72

009

201

12

013

201

52

017

200

52

007

200

92

011

201

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015

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72

007

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011

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201

5

AUS CAN DNK FRA GBR JPN NZL USA

Corporations

208

194190

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 6

Job creation by new enterprises

The service sector continues to be the largest source of employment created by enterprise

births. Across countries, the highest job creation rates were seen in leisure based activities

(art, entertainment and recreation); professional, scientific and technical activities; and real

estate and food and accommodation. The ICT also outperformed the average in many/most

countries.

3. Share of sectors in employment creation by employer enterprise births

Percentage of employment (persons employed) created by births, business economy, 2016 or latest available year

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

0

10

20

30

40

50

60

70

80

90

100

Industry Construction Business services

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 7

4. Job creation rate, top sectors

Share of employment created by the births of employer enterprises 2016, or latest available year

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 8

Enterprises by size

The number of firms in a country is correlated with the size of the economy, but significant

differences in business populations exist among countries of comparable size. Italy for

example has a much higher number of enterprises than France.

In all countries, the majority of enterprises (between 70% and 95%) are micro-businesses,

(i.e. enterprises with fewer than ten persons employed).

5. GDP and number of enterprises

2015 or latest available year

6. Number of enterprises by size, business economy

Percentage of all enterprises, 2016, or latest available year

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 9

Employment and value added by enterprise size

In most OECD economies small and medium-sized enterprises account for over half of all

employment and value added of the business sector.

7. Employment by enterprise size class

2016 or latest available year

8. Value added by enterprise size class

2016 or latest available year

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 10

SMEs and International trade

Significant differences exist among SMEs of different sizes with regards to participation in

international trade. On average 15% of micro-enterprises are traders, while the share is 60%

for small enterprises and 80% for medium-sized enterprises.

9. Incidence of traders by size class, industry

Share of trading enterprises by size class Percentage, 2016 or the latest available year

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

Medium enterprises (50-249)

Micro enterprises (0-9)

Small enterprises (10-49)

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100

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100

Importers Exporters

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20

30

40

50

60

70

80

90

100

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 11

Compensation of employees by enterprise size

In most countries, compensation of employees constitutes the largest part of value added,

particularly in SMEs, which tend to be less capital-intensive than larger firms. However,

shares vary significantly across countries – in France for example compensation shares are

twice those of Japan - and have fallen in many OECD economies in both large firms and

SMEs in the last decade.

10. Compensation of employees over value added, by enterprise size, manufacturing

Percentage

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 12

Labour productivity and enterprise size

The relative size (or spread) of productivity differences between larger and smaller firms

varies considerably across countries. In the manufacturing sector, where production tends to

be more capital-intensive and larger firms can exploit increasing returns to scale, large firms

show almost consistently higher levels of productivity than smaller ones. Differences in

productivity across size classes are relatively smaller in services sectors. In many countries,

medium-sized service sector firms outperform larger firms, reflecting the heterogeneous mix

of activities in the service sector and a relatively higher concentration of SMEs in niche, high-

brand or high intellectual property content activities.

11. Labour productivity by enterprise size, business economy

Value added per person employed, thousands of USD, current PPPs, 2016, or latest available year

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 13

12. Labour productivity by enterprise size, manufacturing and services

Value added per person employed, index Large enterprises=100, 2016, or latest available year

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 14

Entrepreneurial finance and motivation to set up a business

Making more money motivates men more than women to create a business, while pursuing

an interest or hobby is a stronger motivator for women. Women use bank loans as a source

of financing at significantly lower rates than men, instead relying on personal savings and

spousal funds. Although gender bias in lending policies may play a role, this in part also

reflects gender differences in the types of industries engaged in, with men typically engaged

in more capital-intensive industries.

13. Motivations to set up a business

Percentage of respondents pointing to the option, by gender of ownership or management; Feb-Apr - 2018

14. Use of bank loans for business financing

Percentage of respondents pointing to the financing source, by gender of ownership or management; Jan-Apr - 2018

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

0

10

20

30

40

50

60

70

To pursue an interest or hobby

Women Men

0

10

20

30

40

50

60

70

To make more money

Women Men

0

5

10

15

20

25

30

35

Women Men

OECD ENTREPRENEURSHIP AT A GLANCE - HIGHLIGHTS 2018 © OECD 2018 15

Venture capital investments

In the majority of OECD countries, venture capital constitutes a very small percentage of

GDP, often less than 0.05%, although shares are growing. The two major exceptions are

Israel and the United States, where the venture capital industry is more mature,

representing more than 0.35% of GDP.

15. Venture capital investments as a percentage of GDP

Percentage, 2017, or latest available year

16. Trends in venture capital investments

Index 2010=100

Access data via: www.oecd.org/sdd/business-stats/EAG_2018_Highlights.xlsx

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Seed/start-up/early stage Later stage v enture Total

0

0.002

0.004

0.006

0.008

0.01

0.012

0

50

100

150

200

250

2017 or latest available year 2010

1,080 415 268