Improving SME Statistics Workshop: Draft Conclusions and Recommendations

1. Workshop on Improving Statistics on SME's and Entrepreneurship, Paris, 17-19 September 2003 Draft Conclusions and Recommendations

2. FIRST DAY: Strategic Statistical Issues Limiting the Possibilities of SME Analysis and Possible Avenues Towards more Comparability and Coherence Stocktaking of existing SME statistics 1. OECD’s first analysis of statistical strategies revealed considerable variety in national approaches concerning the definition of SMEs Recommendation: Inventory/ TARGET definitions needed Recommendation: Agreement on matching size classes needed Convergence of key issues identified

3. Session 1 • OECDs SEC database provides together with the SBS an important tool for business and SME analysis • Given the co-operation initiated with Eurostat, OECD has to focus on “bridging” with Non–EU OECD countries • Inventory of different practices concerning • SME definitions • Size groups • Reference units • Metadata • Recommendation: OECD needs to determine action plan and process

4. Session 1 • SMEs are integral part of structural business statistics, but need linking to other sources. • Recommendations: • Quality indicators needed • (In)dependence criteria need to be integrated • Effort needed towards consistent SBS – SME Demographic data • Focus on developing information on services sector • Recommendation: Agreement on observation unit(s) is needed.

5. Session 2: User needs • Translate fiscal/administrative data into statistical terms • NSOs are best equipped to further develop BR • NSO cooperation with Administration should be reinforced • “Proprietary “ data sets are not useful, no comparability • Finance information (Canada’s experience) very relevant • “Much confusion, little direction” • Get SMEs to become PARTNERS, • Establishment versus enterprise: OECD should play bridging role • Ensure return to those who co-operate and provide data • Many ways of facilitating access to data • Get governments as stakeholders (contract research)

6. Session 3: New approaches from data providers • There are lessons to be drawn from recent initiatives towards more integrated and traceable BR (e.g. Korea) • Unique ID across Administration ? • BR as a survey frame, clarification and more coherence on statistical definitions (units etc.) and variables collected • A more comprehensive survey design “upstream” may be extremely cost-effective to minimise costs “downstream” • Maximise ability -> multi – purpose framework • Anticipate TOGETHER with policy makers future needs -> statistical build-up takes time. • Improve access and use of BR for NSOs

7. Possible ways forward (day 1): • Action plan OECD for Istanbul • Expert Task Force on Business Statistics • Expert advise on contents of recommendations • Comprehensive stocktaking to be completed • Large consultation process across producers, users, stakeholders and policy makers • TARGET definitions are key for improving coherence and transparency and comparability • Easier access to data and sharing facilitates co-operation and knowledge (OECD role as facilitator and also forum provider)

8. General lessons & recommendations (day 2) • The development of pertinent statistics on SMEs and for entrepreneurship requires close co-operation with users and with providers of administrative data. • In a context of budget restraints for many NSIs, more must be done with existing data – linking data can reduce the burden on firms, improves the quality of statistics and helps address complex policy questions. • The development of an integrated business register is key – countries without such a register need to address legal constraints that prevent the development of such a register – if needed, at the highest political level.

9. Enterprise demography • A common understanding and international definition of enterprise demography needs to be developed. • Methods to develop statistics may not be fully harmonised, due to differences in statistical systems. • The interpretation of differences in entry and exit between countries requires careful analysis. • Enterprise groups are as important as small firms. • Metadata are key to understand differences. • Recommendation: NSIs, OECD & Eurostat should work together to improve statistics, share experiences and analyse results.

10. Women entrepreneurship • Statistical terminology & definitions need clarification. • Need for more analysis of factors influencing (women) entrepreneurship, e.g. education and experience. • Recommendation 1: Use existing data better by enabling links, e.g. of employer and employee data. • Recommendation 2: Examine potential for extensions to existing statistics, e.g.: • Special surveys, e.g. on factors of success and entrepreneurship. • Integration of gender in the business register – but this typically depends on the administrative source. • Integrate gender in business statistics.

11. Factors of success • Tracking of new firms over time provides new insights in factors driving success of new firms. • Existing experiences are positive. • Surveys are costly, however, and impose a response burden on new firms. • Eurostat is developing a model survey for use in 2004. • Survey evidence should be evaluated with care. • Recommendation: Interested NSIs are encouraged to co-operate with Eurostat in developing a model survey on factors of success.

12. Data linking • Benefits of data linking are substantial: for respondents, for statistical offices, for analysts and policy makers. • Some problems and good practices in dealing with them. • Essential to work closely with providers of administrative data – what is the data used for. • Confidentiality and data access need to be ensured. • Recommendation 1: NSIs are encouraged to engage in data linking – developing common business identifiers is key. • Recommendation 2: Policy makers need to address legal barriers that prevent data linking. • Recommendation 3: OECD should act as forum for discussion, sharing of best practices and analysis.

13. Day 3 – Non-member economies • Many key issues are similar for non-member economies. • Special problems: • Underground economy. • More pluri- and pseudo-activity. • Even less coverage of services sector: • Development of national business registers is underway – cost of registration is concern. • Political push needed. • Recommendation: OECD and NSOs should continue to share experience and best practices with non-member economies.

14. Process to agree on recommendations • Feedback on draft recommendations during this session. • Drafting of recommendations – short statement for Ministerial declaration, more detailed recommendations in separate document or annex. • Vetting of recommendations in several steps: • By written contact with delegates to this meeting • By the Statistical Working Party (6-7 November). • By Working Party on SMEs and Entrepreneurship (early December). • By other relevant bodies of the OECD.