EMCC European Monitoring Centre on Change

Estonia: ERM comparative analytical report on emerging forms of entrepreneurship

  • Observatory: EMCC
  • Topic:
  • Published on: 21 March 2011



About
Country:
Estonia
Author:
Kirsti Nurmela
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited or approved by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

In terms of the five forms of entrepreneurship defined in this CAR, the most discussed is the form of one-person enterprises/ self-employed not employing any workers. Most recently the discussions have evolved around taxation of self-employed, but also entrepreneurship as an alternative to salaried work (i.e. supporting the creation of new businesses as a measure to reduce unemployment in the recession). Other forms of entrepreneurship have not been as prominent in public discussions. In addition, data available on these forms of entrepreneurship is scarce as the data collection is not designed keeping in mind the emerging forms of entrepreneurship. There is no special research to point out that would concentrate specifically on any of the five forms of entrepreneurship.

The questionnaire

Part I: Public/policy discussion

General policy discussions and policy approach


Do the public/policy discussions specifically deal with the different forms of business activities, since when and for how long?

Table 1: Presence of the different emerging forms of entrepreneurship in the public debate
 

Yes, continuously since xx year? (Please indicate year)

Yes, on and off in the last 10 years

(Please indicate yes where it applies)

Yes, has been on the public agenda, but since xx year it is no longer part of the agenda (Please indicate year)

No, it has never been part of the public agenda

(Please indicate X where it applies)

One-person enterprises /self-employed  

Yes

   
Part-time entrepreneurs      

x

Parallel entrepreneurs      

X

Serial entrepreneurs      

X

Business transfers and successions    

2008

 


For each of the entrepreneurship/business activities covered by policy discussions, which policy domains are they covered in? Please indicate with an ’X‘ where relevant.

Table 2: Policy domains engaged in the policy discussion of the emerging forms of entrepreneurship
 

Labour policies

Educational policies

Economic/Industrial policies

Innovation policies

Regional policies

Other (please specify)

One-person enterprises /self-employed

x

 

x

     
Part-time entrepreneurs            
Parallel entrepreneurs            
Serial entrepreneurs            
Business transfers and successions

x

 

x

     


In which media and forum do the public debate and policy discussions about the different types of entrepreneurship take place?

Please indicate whether they are implicitly (e.g. publications are covering entrepreneurs in general with implicit implications for the different forms of entrepreneurs/business activities) covered and/or explicitly mentioned (for instance parallel entrepreneurs are explicitly mentioned in publications) in these publications

Table 3: Media and forums discussing the emerging forms of entrepreneurship
 

Public media such as newspapers and magazines incl. electronic media

Policy documents and analysis

Proposed legislation and/or business support schemes

Others, please specify

One-person enterprises/self-employed

explicit

explicit

explicit

 
Part-time entrepreneurs        
Parallel entrepreneurs        
Serial entrepreneurs        
Business transfers and successions  

implicit

implicit

 

Specific topics to describe the different types of entrepreneurship


What has motivated the public debate?

Please specify for each of the five forms of entrepreneurship:

Table 4: What has motivated the public debate of the emerging forms of entrepreneurship

Type of Entrepreneurship

Motivator

One-person enterprises/self-employed

Dysfunctionalities that call for improvement of business legislation (e.g. administrative burden), market failures that require public intervention (e.g. access to financing)

Part-time entrepreneurs  
Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions

The need to implement EU Directives in national legislation (Council Directive 2001/23/EC) and Small Business Act (SBA) of the European Commission


What has been the focus of the policy discussion?

To help you answer question 5, we list some examples of key issues that could be addressed in the policy discussion:

Please specify for each of the five forms of entrepreneurship:

Table 5: The policy focus in the public debate within each of the emerging forms of entrepreneurship

Type of Entrepreneurship

Policy focus

One-person enterprises/self-employed

Preventing illegal activities and deception (taxation of self-employed); ease the administrative burden of establishing a new company/running a company; occupational health and safety among self-employed; promoting entrepreneurship; improving access to finance for SMEs; financial incentives for business creation by unemployed people; counselling and information dissemination; facilitate business creation through administrative simplification

Part-time entrepreneurs  
Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions

Implementation of EU Council Directive 2001/23/EC on safeguarding of employees' rights in the event of transfer of business, implementation of the Small Business Act in Estonia


Has the public discussion resulted in a concrete outcome/impact?

No:

Yes:

Please specify for each of the five forms of entrepreneurship:

Table 6: Outcome or impact of the public debate of the emerging forms of entrepreneurship

Type of Entrepreneurship

Outcome/Impact

One-person enterprises/self-employed

Yes: new business promotion schemes (i.e. support to unemployed to take up entrepreneurship, increase in start-up grants, financing training among self-employed/micro and small companies), changes in legislation (i.e. increase in social tax contributions for self-employed, occupational health and safety requirements for self-employed), new policy measures proposed in government strategic planning for the near future

Part-time entrepreneurs  
Parallel entrepreneurs  
Serial entrepreneurs  
Business transfers and successions

Yes: the EU Council Directive 2001/23/EC has been implemented into Estonian legislation (Employment Contracts Act)

No: in terms of business transfers in small businesses (as pointed out in the Small Business Act), there have been no legislative changes introduced.

Overall assessment


Within the last couple of years, to which extent has the public and policy discussion been more focused on the following different types of entrepreneurship compared to the business policy/entrepreneurship debate in general?

Table 7: Increased focus at the emerging forms of entrepreneurship?
 

To a low degree To a high degree

 

1

2

3

4

5

One-person enterprises/self-employed    

X

   
Part-time entrepreneurs

X

       
Parallel entrepreneurs

X

       
Serial entrepreneurs

X

       
Business transfers and successions

X

       


Please list the main sources of information in the search for the above


Part II: Standardised structural data

Which standardised business statistics are available covering the different forms of entrepreneurship/business activities (explicitly or implicitly, i.e. also data that could be used to describe these forms of entrepreneurship without being published with this specific objective/heading)?

Table 8: Availability of business statistics about the emerging forms of entrepreneurship
 

Type of data available

Indicate access to data by an ‘X’ in the first column

First published

Indicate year

Time series of data

(Biannually, annually, quarterly, monthly, once only, other)

Data source for the data

One-person enterprises/ self-employed

Number of enterprises (number of persons indicating their employment status as own-account workers)

X

1989

Commercial Register data entered since 1990 but available mostly since 2000

1989-1996 annually; since 1997 quarterly

Data is inserted regularly, although different time series are available (for instance annual data)

Statistics Estonia (Labour Force Survey)

Commercial Register

Enterprises by branch (NACE 4-digit level is available)

X

2000

Different time series

Commercial Register

Availability of regional data (based on the registration address of the company)

X

2000

Different time series

Commercial Register

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

X

2000

Different time series

Commercial Register

Economic performance e.g.:

(Note: economic performance data is based on data available from annual reports)

Turnover

X

2000

Different time series

Commercial Register

Exports

       

Employment

X

2000

Different time series

Commercial Register

Balance sheet data

x

2000

Different time series

Commercial Register

Cash flow statements

x

2000

Different time series

Commercial Register

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

Share of newly born enterprises with no employees in total newly born enterprises

x

2000

Annually

Statistics Estonia (statistical profile of enterprises)

 

Share of dead enterprises with no employees in total number of dead enterprises

x

2000

Annually

Statistics Estonia (statistical profile of enterprises)

 

Number of survived enterprises with no employees

x

2002

Annually

Statistics Estonia (statistical profile of enterprises)

Part-time entrepreneurs

Number of enterprises (number of persons with more than one job, with the second job being self-employment (i.e. employers, own-account workers, unpaid family workers)

x

1997

Quarterly

Statistics Estonia (Labour Force Survey)

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

Survival rate of enterprises

       

Others, specify:

       
Parallel entrepreneurs

Number of enterprises (number of entrepreneurs with more than one enterprise)

x

2004

Once only

Estonian Institute of Economic Research

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       
Serial entrepreneurs

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       
Business transfers and successions

Number of enterprises

       

Enterprises by branch (please specify which NACE code digit level is available)

       

Availability of regional data (please specify)

       

Type of ownership of enterprises (sole propriety, limited company, publically listed company, etc)

       

Economic performance e.g.:

Turnover

       

Exports

       

Employment

       

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

       

Number of discontinued enterprises, incl. bankruptcies –

       

survival rate of enterprises

       

Others, specify:

       

Is it possible to crosstab or merge the demographic data identifying the individual persons running any of the five forms of entrepreneurships/business activities with the company data specified in question 9 in a common database for analytical purpose?

No.

Table 9: Availability of demographic statistics about the entrepreneur within the emerging forms of entrepreneurship
 

Type of data available

Indicated access to data by an ‘X’ in the first column

First published

Indicate year

Time series of data

(Biannually, annually, quarterly, monthly, once only, other)

Data source for the data

One-person enterprises/ self-employed Number of enterprises held by each entrepreneur/owner        
Gender

x

1989

1989-1996 annually; since 1997 quarterly

Statistics Estonia (Labour Force Survey)

Ethnicity

X

1989

1989-1996 annually; since 1997 quarterly

Statistics Estonia (Labour Force Survey)

Civic status (married, single, children)        
Age        
Geographical location (place of residence: urban/rural settlement)

x

1989

1989-1996 annually; since 1997 quarterly

Statistics Estonia (Labour Force Survey)

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Part-time entrepreneurs Number of enterprises held by each entrepreneur/owner        
Gender (persons with more than one job, with the second job being self-employment (i.e. employers, own-account workers, unpaid family workers)

x

1997

Quarterly

Statistics Estonia (Labour Force Survey)

Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Parallel entrepreneurs Number of enterprises held by each entrepreneur/owner

x

2004

Once only

Estonian Institute of Economic Research

Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Serial entrepreneurs Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        
Business transfers and successions Number of enterprises held by each entrepreneur/owner        
Gender        
Ethnicity        
Civic status (married, single, children)        
Age        
Geographical location        

Educational background (last registered education)

       
Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

       
Working hours of the entrepreneur        
Income of the entrepreneur        
Other types of data (Specify):        

Is the data freely accessible or does it require registration, payment and/or a special effort to access the data? Please explain the accessibility for each of the forms of entrepreneurs/business activities and datasets referred to above.

Table 10: List of statistical sources about the emerging forms of entrepreneurship

List data source/dataset

Explain the accessibility

Statistics Estonia (Labour Force Survey)

Freely accessible (http://pub.stat.ee/px-web.2001/Dialog/statfile1.asp)

Statistics Estonia (statistical profile of enterprises)

Freely accessible (http://pub.stat.ee/px-web.2001/Dialog/statfile1.asp)

Commercial Register

Requires payment and data inquiry.

   
   

Part III: Research

Please describe studies and research available nationally for each of the forms of entrepreneurs/business activities.

Table 11: List of studies and research about the emerging forms of entrepreneurship
 

List the references (author’s name, title of publication etc, year of publication, organisation)

A short summary of the contents (e.g. topic covered, methodology applied)

One-person enterprises/self-employed

Saar Poll, Eesti väikese ja keskmise suurusega ettevõtete arengusuundumused, 2008

Saar Poll, Eesti väikese ja keskmise suurusega ettevõtete arengusuundumused, 2005

The aim of both surveys was to analyse the SMEs in Estonia. In some aspects, the situation of enterprises with no employees has been analysed. A sample of 1,750 SMEs in 2008 and 2,000 SMEs in 2005 were interviewed.

Part-time entrepreneurs    
Parallel entrepreneurs

Lepane, L., Kuum, L., Eesti elanike ettevõtlikkus (elanike küsitlusuuringu tulemused), 2004, Estonian Institute of Economic Research

The aim was to collect information on attitudes of entrepreneurship among the Estonian population (including attitudes, opinions and engagement in entrepreneurial activities). A sample of 1,000 persons was interviewed through telephone-interviews in November 2004 (Estonian population aged 16-64).

Serial entrepreneurs    
Business transfers and successions    

Author comment: the research available mostly covers the above mentioned forms of entrepreneurship implicitly and does not concentrate on these forms of entrepreneurship.

Kirsti Nurmela, PRAXIS Center for Policy Studies



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