Kauffman Firm Survey

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Kauffman Firm Survey

• Tim Davis
• Entrepreneurship Indicators Project
• OECD
• ISTAT-Eurostat-OECD Seminar on Entrepreneurship
  Indicators
• Rome, December 6 and 7, 2006

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Background The Kauffman Foundation

• Large American Foundation
• Based in Kansas City, USA
• Established by Ewing Kauffman Successful
  entrepreneur
• Missions - Advancing Entrepreneurship
• - Improving education of children youth
• Strong supporter of entrepreneurship research and
  data
• Headed by Carl Schramm
• Recent new entrepreneurship book by Schramm
• The Entrepreneurial Imperative How Americas
  Economic Miracle Will Reshape the World (and
  change your life)

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The Kauffman Firm Survey

• Purposes of the Survey
• Understand challenges of owning/operating a new
  business
• Understand the factors of success for businesses
• Focus on financial development during first four
  years
• Characteristics of business and owners as well as
  detailed information on financing of start-up and
  operations
• Inform policy decisions and academic research
• Create a publicly-available data set

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Methodology

• Longitudinal survey
• Target population
• New businesses started in 2004 still operating
• Not a Branch, subsidiary or inherited
• Excludes not-for-profits
• Must locate original entrepreneur
• Interview terminates if original entrepreneur not
  available

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Methodology

• Sample
• - 5,000 companies From Dun and Bradstreet list
• - Over sampled High Tech(3,000 firms)
• Numerous screening questions to ensure
  eligibility
• Questions Re taxes, administrative and legal
  status
• Total of 90 Questions
• Includes interviewer flow questions
• KFS poses questions for EACH owner

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KFS Questionnaire Modules

• Introduction/Identify original
  entrepreneur 10Q
• Eligibility Screening 13Q
• Business Characteristics 8Q
• Strategy and Innovation 7Q
• Business Organisation and HR Benefits 3Q
• Business Finances 31Q
• Work Behaviours and Demographics of Owners 11Q
• Tracing or Follow-up Questions 7Q
• Information Obtained by Observations 1Q

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Comparison CategoriesKFS vs. FoBS

• Methodology
• Entrepreneurs Profile
• Business Characteristics/Environment
• Business Strategy and Innovation
• Financials

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Methodology
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Entrepreneurs Profile
10
Business Characteristics/Environment
11
Business Characteristics/Environment
12
Business Strategy and Innovation
13
Financials
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KFS Financials

• Did owners money buy shares? How much? How many?
• How much equity from each source?
• Ownership share for each equity source?
• Owners use of debt sources? Which sources?
• Credit line? Credit card balance? How often?
  Amount?
• Business use of debt sources? Same questions
• Amounts obtained by business from other debt
  sources
• Did business purchase on account? (deferred
  payment)
• How much was purchased on account?

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Survey Results

• KFS results, and analytical overview, expected in
  February 2007
• Release through Kauffman Web Site and other
  channels
• Eurostat has published aggregated data on its Web
  Site
• Statistics in Focus Bulletin also published