This project utilised a range of econometric approaches to analyse entrepreneurial activity, the growth in Social enterprise and the changing role of the third sector. Research focused on the early stages of entrepreneurial activity and also on the survival and performance of small businesses in Wales (and beyond) as a means to contribute to economic growth and more widely, wellbeing.
The methodological framework drew from a suite of econometric approaches, dependent on data availability and suitability. It was anticipated that these will include production function estimators, hazard models of survival and probit modelling techniques. Where possible, a longitudinal perspective would be taken, but comparability of data over time meant that, at times, cross sectional analysis was used.
The broad framework of analysis:
- Beginning with simple logit modelling on the probability of individuals becoming entrepreneurs using GEM for Wales.
- Scope for multi-level modelling using individual and regional data linking performance and entrepreneurial levels
- PSED is a relatively new approach – panel study of entrepreneurial dynamics
- Look at survival of firms by using the Small Business Survey
- Aim to differentiate between social enterprises and other start-ups
- Using the BSD we can look at job creation and job destruction and also productivity decompositions for Wales (compared with other UK regions).
- The extent of entrepreneurial activity in Wales in comparison with other UK regions; what sort of enterprise is displaying particularly significant birth/growth?
- To what extent are social enterprises increasing in Wales and what are their characteristics?
- What determines the survival of SMEs in Wales compared to other regions of the UK and are social enterprises more or less likely to survive?
- What is the scale of the contribution of SMEs and social enterprises to employment and productivity (growth)?