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Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Advancing Methodology to Measure Entrepreneurship from a Gender
Perspective: an EDGE-OECD Collaboration
Social and Housing Statistics Section - UNSD
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Outline • Why measure entrepreneurship from a gender
perspective?
• Summary of main items discussed at 1st EDGE technical meeting on measuring entrepreneurship
• EDGE methodology – Definition – Conceptual framework – Key indicators
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Why measure entrepreneurship from a gender perspective?
Existing research finds that gender is relevant to: • Determinants of entrepreneurship
– Women are less likely to start an enterprise and more likely to be “pushed” into entrepreneurship
• Characteristics of enterprises – Women’s enterprises tend to be smaller, operate with less
capital and be more embedded in the family • Performance of enterprises
– Women’s enterprises tend to be • less profitable • have smaller life-spans
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Why measure entrepreneurship from a gender perspective (cont’d.)?
Policy relevance: • Better understanding of how women contribute to
the economy and of how to foster women’s entrepreneurial activity – Sustained creation of new jobs – Poverty-reducing economic growth – Spillover effects on women’s empowerment
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
1st EDGE technical meeting on measuring entrepreneurship
• 5-6 December 2013, New York • Attended by NSOs of Georgia, Ghana, India, Mexico,
Philippines, USA, as well as UNECLAC, UNECA, FAO, OECD, World Bank, African and Asian Development Banks and researchers
• Objectives: – To take stock of existing data and research on gender and
entrepreneurship – To identify EDGE’s methodological contribution to
measuring entrepreneurship from a gender perspective
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Main items discussed at EDGE meeting
Defining entrepreneurship: • Who is an entrepreneur? • Little convergence on definitions among researchers • While there is agreement on the typical traits of
‘entrepreneurs’- willingness to take risk, innovate, problem solve, value addition - these concepts are difficult to operationalise
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Main items discussed (cont’d.)
Classifications for facilitating gender analyses of entrepreneurship: • Necessity-based and opportunity-based entrepreneurs • Formal and informal enterprises • Own-account and employer enterprises • Nascent, new, and established enterprises • Type of economic activity enterprise is engaged in
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Main items discussed (cont’d). Data sources: Labour Force Surveys • Advantages
– Standardized questions on characteristics of working population – Self-employment data on # of employers/own account workers – High quality, timely, good int’l coverage
• Limitations – Not all self-employed are entrepreneurs – Usually no info on enterprise other than size/type of activity – Sample size
• The number of female employers is generally limited, even in relatively large surveys, so it is often not possible to cross-tabulate gender and other detailed business or individual characteristics
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Main items discussed (cont’d). Data sources: Surveys on owners of micro and small businesses (mixed surveys) • Use existing household-level data collection as sampling frame
– E.g. Mexico’s quarterly labour force survey for ENAMIN or Brazil’s demographic census for ECINF
– Enables more reliable estimates than small-sample household surveys
• Collect information on both the entrepreneur and the enterprise – Reasons for starting enterprise, employment history, time spent
on enterprise – Estimates of the size and economic performance of micro-
businesses, registered or not
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Main items discussed (cont’d.)
Data sources: Enterprise Surveys • Advantages
– More suitable than household surveys to analysis of performance differentials of women-owned and men-owned enterprises
• Limitations – Limited availability of comparable business surveys with
information on owners – Very small businesses may not be covered
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Main items discussed (cont’d.) Data sources: Business Registers • Advantage:
– Less costly to produce entrepreneurship statistics from business registers than from sample surveys
• Limitations: – Limited availability of linked business and population registers – May be problematic to assign meaningful ownership based on
the name of the owner listed in business register – Non-registered businesses excluded
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Implications for EDGE initiative
• Definition of entrepreneurship: – must strike a good balance between:
• broad definitions that include people without entrepreneurial skills and traits, and
• narrow definitions that exclude individuals within target group for women’s empowerment (e.g. home-based entrepreneurs with no paid employees)
– must be easily implementable with standard data collection instruments
– should be statistically measureable by NSOs as a part of official statistics
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Implications for EDGE initiative (cont’d.)
• Proposed methodology should build on existing instruments to ensure sustainability of data collection – Expand existing household and enterprise surveys to cover
additional data items – Explore feasibility of using administrative data sources
• Start with population-based data – Most women entrepreneurs are concentrated in micro/small
home-based enterprises – Opportunity to pilot full survey module on entrepreneurship
with modules on asset ownership
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
EDGE methodology on measuring entrepreneurship from a gender
perspective: Definition, conceptual framework
and key indicators
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
EDGE operational definition of an entrepreneur
Those persons who have direct control over the activities of an enterprise they own alone or with other individuals. The owners of economic units producing goods and services intended for own final use are not considered entrepreneurs.
(Entrepreneurs as business owners)
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Operational definition (cont’d.) Main intention • Under 19th ICLS Resolution, the main intended
destination of production determines employment status
• Those producing mainly for own final use but selling surplus in the market are not considered self-employed and hence, are not entrepreneurs
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Operational definition (cont’d.) EDGE definition excludes: • Dependent self-employed
– those self-employed whose functions are close to those of wage employees and who are economically dependent on a single purchaser of their services
• Pure own-account workers – those whose work cannot be generally delegated to a third
person and who do not employ others even if they can afford to (e.g. baby sitters, domestic helpers etc.)
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Open questions Main occupation? • EDGE definition implicitly restricts entrepreneurs to
those working for their own enterprise as their main occupation
• Restriction meant to minimize type II error • But does it exclude too many others?
– US Census Bureau reports that up to ½ of all people who begin start-ups keep their “day job” as a source of financing or safety net
• Gender bias if women are more likely than men not to perceive themselves as entrepreneurs?
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Open questions (cont’d.) Ownership size threshold? • No ownership size threshold or upper bound is
established in EDGE definition
• But defining the ‘gender’ of enterprises owned by a large number of people with complex ownership structures is problematic and may not be meaningful from a gender perspective.
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
EDGE conceptual framework Determinants Outcomes Impact Entrepreneurial
participation Motivations
and aspirations
Entrepreneurial resources
and constraints
Enterprise performance
Employment creation
Growth with poverty
reduction
Women’s empowerment
Analysis EDGE indicators on entrepreneurship
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Motivations and aspirations
• EDGE focus on how “entrepreneurial culture” shapes gender gaps in entrepreneurship – Motivations for starting an enterprise – Mode of acquisition of enterprise – Growth aspirations
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Proposed indicators: motivations and aspirations, by sex
Indicator Data Source Current Availability A1. Percentage of necessity entrepreneurs
Household survey (primary); enterprise survey (supplemental)
In unofficial data (GEM) and micro-enterprise surveys for a few countries
A2. Percentage of entrepreneurs who were unemployed before starting enterprise
Household survey (primary); enterprise survey (supplemental)
Household surveys can provide information on previous economic activity.
A3. Percentage of enterprise founders
Household survey or Enterprise-level data
Few countries, in surveys of owners (US SBO, Mexico ENAMIN)
A4. Percentage of entrepreneurs satisfied with size of enterprise
Household survey (primary); enterprise survey (supplemental)
Few countries in micro-enterprise surveys
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Entrepreneurial resources and constraints • EDGE focus on self-reported “soft” and “hard” resources for
starting/growing enterprise and constraints faced during start-up/management process: – Skills and management experience of entrepreneur – Income available to invest in enterprise – Access to credit – Time available to invest in enterprise – Support networks
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Proposed indicators: entrepreneurial resources and constraints, by sex Indicator Data Source Current Availability B1. Percentage of entrepreneurs who completed secondary or higher education
HH survey (primary), Enterprise-level data (supplemental)
Yes, in household and labour force surveys and population censuses
B2. Percentage of entrepreneurs who received training or education on starting an enterprise
HH survey Few microenterprise surveys (Mexico ENAMIN)
B3. Percentage of founders who used credit from banks to start enterprise
Enterprise-level data or HH surveys
WB Enterprise Survey, few firm-level, microenterprise surveys
B4. Percentage of entrepreneurs who used credit from banks to finance operating investments
Enterprise-level data or HH surveys
WB Enterprise Survey
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Proposed indicators: entrepreneurial resources and constraints, by sex (cont’d.) Indicator Data Source Current Availability
B5. Percentage of entrepreneurs identifying access to finance as major constraint for enterprise growth
HH survey (primary), Enterprise-level data (supplemental)
Few microenterprise surveys and firm-level surveys (France SINE)
B6. Percentage of entrepreneurs identifying lack of time as major constraint for enterprise growth
HH survey (primary), Enterprise-level data (supplemental)
In few micro-enterprise surveys
B7. Average hours spent working on business per week
HH survey (primary), Enterprise-level data (supplemental)
Yes, in household and labour force surveys
B8. Percentage of entrepreneurs who regularly receive managerial advice, by source of advice
Household survey Not available
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Entrepreneurial participation
• Most important objective of international data collection on women’s entrepreneurship is to produce a reliable and comparable measure of the number of men and women entrepreneurs.
• EDGE focus on identifying a metric that is: – easily and similarly understood across different
development contexts – easy to produce via light modifications to extant
data collection instruments
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Proposed indicators: entrepreneurial participation, by sex
Indicator Data Source Current Availability C1. Percentage of adult population who are entrepreneurs
Household survey or population census (primary), Enterprise-level data (supplemental)
Yes, in household and labour force surveys and population censuses
C2. Percentage of entrepreneurs, by size of enterprise and economic activity
Household survey or population census (primary), Enterprise-level data (supplemental)
Yes, in household and labour force surveys and population censuses
C3. Percentage of women who are main owners and managers of enterprise, by size of enterprise
Household survey and Enterprise-level data
Not available, with limited exceptions (US SBO)
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Proposed indicators: entrepreneurial participation, by sex (cont’d.)
Indicator Data Source Current Availability
C4. Percentage of enterprises owned by women/men, by size of enterprise and activity
Enterprise-level data (primary), household survey (supplemental)
WB Enterprise Survey for most countries
C5. Percentage of women/men among owners of unregistered enterprises
Household survey From household, labour force and micro-enterprise surveys but only for a few countries
C6. Percentage of enterprises registered by women/men
Administrative data Not available, with limited exceptions (Germany)
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Enterprise performance
• Performance is traditionally proxied by longitudinal indicators measuring growth path of enterprise – Requires highly developed infrastructure of longitudinal
data • EDGE focus is on performance indicators that can be more
easily produced via cross-sectional surveys • Challenges include:
– Identifying a single concept of business earnings – Assessing best approach for measuring earnings – Apportioning share of profits in multi-owner enterprises
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Proposed indicators: enterprise performance, by sex of owner
Indicator Data Source Current Availability D1. Gender gap in earnings from enterprise
Household survey or Enterprise-level data
Often only for unincorporated self-employed in household surveys, and in few micro-enterprise surveys
D2. Gender gap in enterprise turnover
Enterprise-level data (primary), household survey (supplemental)
WB Enterprise Survey and a few micro-enterprise surveys
D3. Percentage of enterprises with employment growth
Enterprise-level data (primary), household survey (supplemental)
Not available
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Proposed indicators: enterprise performance, by sex of owner (cont’d.)
Indicator Data Source Current Availability
D4. Percentage of innovating enterprises, by type of innovation
Enterprise-level survey
Available only in few Enterprise-level surveys (France SINE)
D5. Percentage of exporting enterprises
Enterprise-level survey Non-official data (GEM), few micro-enterprise surveys, WB Enterprise Survey
D6. Average age of enterprise
Household survey or Enterprise-level data
Enterprise surveys
D7. Job satisfaction of entrepreneur
Household survey Not available
Workshop on Developing Entrepreneurship Statistics by Gender in Armenia, 16-17 December 2014, Yerevan, Armenia
United Nations Statistics Division
Thank you!