EMCC European Monitoring Centre on Change

Questionnaire for ERM CAR on 'Emerging forms of entrepreneurship'

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



About
Country:
United Kingdom
Author:
Thomas Prosser
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.

This contribution identifies the various types of entrepreneurship that are prevalent in the UK policy context and the differing regulatory approaches to them. It also outlines the differing data sources that provide information on entrepreneurs in the UK and their demographics, and also provides information on literature concerning the types of entrepreneurs.

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

1979

     
Part-time entrepreneurs  

1997

   
Parallel entrepreneurs  

1997

   
Serial entrepreneurs  

1997

   
Business transfers and successions

1979

     

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

x

x

x

Taxation policy

Part-time entrepreneurs

x

x

x

x

x

 
Parallel entrepreneurs

x

x

x

x

x

 
Serial entrepreneurs

x

x

x

x

x

 
Business transfers and successions    

x

   

Taxation policy (particularly inheritance tax)

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

The phenomenon is not seen as a ‘new’ or a ‘growing’ one in the mainstream UK media so it attracts a limited amount of coverage.

The issue of one-person small enterprises continues to occupy a key place in public discourse in the UK. Many labour/taxation policies are benchmarked against the ‘burden’ they are likely to place upon one-person small enterprises. A key critique of the ‘New Labour’ Government that lost the May 2010 election in the UK was that their policies had created an excess burden upon one-person small enterprises.

The programme of the Conservative/Liberal Democrat coalition that was formed in May 2010 includes many proposals that aim to make the regulatory framework for one-person small enterprises more liberal. These proposals include measures on simplification of taxation, and the promotion of small business procurement.

 
Part-time entrepreneurs

Yes, substantial coverage has been given to the trend in public media outlets. Discussion has centred around the trend of ‘5-9’ entrepreneurs and the alleged growth of the trend.

Little explicit mention is given to part-time entrepreneurs. The issues that affect part-time entrepreneurs tend to be implicitly covered in the discussion concerning general entrepreneurship issues.

The new UK coalition Government have announced plans to end the ban on social tenants starting businesses in their own homes.

 
Parallel entrepreneurs

Some coverage has been given to this.

Little explicit mention is given to parallel entrepreneurs. The issues that affect parallel entrepreneurs tend to be implicitly covered in the discussion concerning general entrepreneurship issues.

No specific policies related to parallel entrepreneurs.

 
Serial entrepreneurs

Coverage has been given to this. Serial Entrepreneurs moving from sectors perceived to be growing suddenly (i.e. the dot.com sector) have attracted particular attention.

Some discussion is given to the extent which it is deemed ‘easy’ to establish businesses with regard to existing regulatory frameworks. The subject of the stringency of the UK bankruptcy laws (specifically the Enterprise Act of 2002), and the extent to which they make it difficult for serial entrepreneurs, have also been discussed

The new UK coalition Government have announced plans to make it far easier for individuals to set up new businesses.

 
Business transfers and successions

There has been limited coverage of this.

The issue of inheritance tax has been discussed greatly in recent years in the UK. Debate has centred on the level of income above which inheritance tax should be paid.

The UK Conservative Party, the largest party in the current UK coalition Government, included in their manifesto for the May 2010 election a pledge to raise the level at which inheritance tax is paid to 1 million GBP. The subsequent formation of a coalition Government in the UK, meant that the proposal was not explicitly referred to in the programme of the new Government. It is unclear as of July 2010 whether the reform will be pursued in the coming years.

 

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

Concern over level of regulatory burden or ‘red-tape’ that has been placed upon one-person entrepreneurs. Debate has focused upon the level of administrative demands that are placed upon one-person enterprises and the ability of individuals to cope with the workload

Part-time entrepreneurs

There has been little explicit debate on this topic in the UK policy context. Debate has been implicitly conducted within general debates on entrepreneurship.

Parallel entrepreneurs

There has been little explicit debate on this topic in the UK policy context. Debate has been implicitly conducted within general debates on entrepreneurship.

Serial entrepreneurs

The ability of individuals to start up new enterprises has been debated. Specifically, complex financial/registration procedures have been identified as impeding the ability of individuals to start up new businesses. Also, UK bankruptcy regulations that are place limits upon individuals to start-up new businesses have been compared negatively to other more liberal regulatory regimes.

Business transfers and successions

Debate has focussed on the issue of inheritance tax and its fairness. Critics of the existing regime have stated that tax on the transfer of businesses to relatives is unfair and inefficient and likely to place intolerable burdens upon entrepreneurs.

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

Administrative burdens upon such entrepreneurs/Rates of business tax/promoting entrepreneurship

Part-time entrepreneurs

Administrative burdens upon such entrepreneurs/promoting entrepreneurship

Parallel entrepreneurs

Administrative burdens upon such entrepreneurs/promoting entrepreneurship

Serial entrepreneurs

Bankruptcy laws/Regulating illegal business activities

Business transfers and successions

Inheritance tax/Education – awareness raising and training

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

The programme of the Conservative/Liberal Democrat coalition that was formed in May 2010 includes many proposals that aim to make the regulatory framework for one-person entrepreneurs more liberal. These proposals include measures on simplification of taxation, and the promotion of small business procurement.

Part-time entrepreneurs

The new UK coalition Government has announced plans to end the ban on social tenants starting businesses in their own homes.

Parallel entrepreneurs

No specific policies related to parallel entrepreneurs.

Serial entrepreneurs

The new UK coalition Government has announced plans to make it far easier for individuals to set up new businesses.

Business transfers and successions

The UK Conservative Party, the largest party in the current UK coalition Government, included in their manifesto for the May 2010 election a pledge to raise the level at which inheritance tax is paid to 1 million GBP. The subsequent formation of a coalition Government in the UK, meant that the proposal was not explicitly referred to in the programme of the new Government. It is unclear as of July 2010 whether the reform will be pursued in the coming years.

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

Academic publications (listed in bibliography)

n/a

Department for Business, Innovation and Skills

http://www.bis.gov.uk/

The Financial Times

The Guardian

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

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Enterprises by branch (please specify which NACE code digit level is available) data for all NACE code digit levels is available

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Availability of regional data (please specify)

FAME includes information on the geographical region of the UK in which relevant firms operate

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

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

x

2010

Quarterly

Financial Analysis Made Easy (FAME)

Economic performance e.g.:

Turnover

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Exports

       

Employment

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

X

2010

Annual

Inter-Departmental Business Register (IDBR)

Number of discontinued enterprises, incl. bankruptcies –

X

2010

Annual

Inter-Departmental Business Register (IDBR)

survival rate of enterprises

X

2010

Annual

Inter-Departmental Business Register (IDBR)

Others, specify:

       
Part-time entrepreneurs

Number of enterprises

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

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

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Availability of regional data (please specify)

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

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

x

2010

Quarterly

Financial Analysis Made Easy (FAME)

Economic performance e.g.:

Turnover

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Exports

       

Employment

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

X

2010

Annual

Inter-Departmental Business Register (IDBR)

Number of discontinued enterprises, incl. bankruptcies –

X

2010

Annual

Inter-Departmental Business Register (IDBR)

Survival rate of enterprises

X

2010

Annual

Inter-Departmental Business Register (IDBR)

Others, specify:

       
Parallel entrepreneurs

Number of enterprises

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

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

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Availability of regional data (please specify)

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

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

x

2010

Quarterly

Financial Analysis Made Easy (FAME)

Economic performance e.g.:

Turnover

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Exports

       

Employment

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

X

2010

Annual

Inter-Departmental Business Register (IDBR)

Number of discontinued enterprises, incl. bankruptcies –

X

2010

Annual

Inter-Departmental Business Register (IDBR)

survival rate of enterprises

X

2010

Annual

Inter-Departmental Business Register (IDBR)

Others, specify:

       
Serial entrepreneurs

Number of enterprises

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

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

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Availability of regional data (please specify)

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

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

x

2010

Quarterly

Financial Analysis Made Easy (FAME)

Economic performance e.g.:

Turnover

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Exports

       

Employment

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

X

2010

Annual

Inter-Departmental Business Register (IDBR)

Number of discontinued enterprises, incl. bankruptcies –

X

2010

Annual

Inter-Departmental Business Register (IDBR)

survival rate of enterprises

X

2010

Annual

Inter-Departmental Business Register (IDBR)

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

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Exports

       

Employment

X

2010

Quarterly

Financial Analysis Made Easy (FAME)

Others: ___________

       

Sustainability:

Number of new enterprises (start-ups) by year

X

2010

Annual

Inter-Departmental Business Register (IDBR)

Number of discontinued enterprises, incl. bankruptcies –

X

2010

Annual

Inter-Departmental Business Register (IDBR)

survival rate of enterprises

X

2010

Annual

Inter-Departmental Business Register (IDBR)

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

2009

Quarterly

UK Labour Force Survey

Ethnicity

X

2009

Quarterly

UK Labour Force Survey

Civic status (married, single, children)        
Age

X

2009

Quarterly

UK Labour Force Survey

Geographical location        

Educational background (last registered education)

X

2009

Quarterly

UK Labour Force Survey

Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

X

2009

Quarterly

UK Labour Force Survey

Working hours of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

Income of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

Other types of data (Specify):        
Part-time entrepreneurs Number of enterprises held by each entrepreneur/owner

X

2009

Quarterly

UK Labour Force Survey

Gender

X

2009

Quarterly

UK Labour Force Survey

Ethnicity

X

2009

Quarterly

UK Labour Force Survey

Civic status (married, single, children)        
Age

X

2009

Quarterly

UK Labour Force Survey

Geographical location

X

2009

Quarterly

UK Labour Force Survey

Educational background (last registered education)

X

2009

Quarterly

UK Labour Force Survey

Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

X

2009

Quarterly

UK Labour Force Survey

Working hours of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

Income of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

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

X

2009

Quarterly

UK Labour Force Survey

Gender

X

2009

Quarterly

UK Labour Force Survey

Ethnicity

X

2009

Quarterly

UK Labour Force Survey

Civic status (married, single, children)        
Age

X

2009

Quarterly

UK Labour Force Survey

2009

Quarterly

UK Labour Force Survey

Geographical location

X

2009

Quarterly

UK Labour Force Survey

Educational background (last registered education)

X

2009

Quarterly

UK Labour Force Survey

Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

X

2009

Quarterly

UK Labour Force Survey

Working hours of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

Income of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

Other types of data (Specify):        
Serial entrepreneurs Number of enterprises held by each entrepreneur/owner

X

2009

Quarterly

UK Labour Force Survey

Gender

X

2009

Quarterly

UK Labour Force Survey

Ethnicity

X

2009

Quarterly

UK Labour Force Survey

Civic status (married, single, children)        
Age

X

2009

Quarterly

UK Labour Force Survey

Geographical location

X

2009

Quarterly

UK Labour Force Survey

Educational background (last registered education)

X

2009

Quarterly

UK Labour Force Survey

Current/previous employment of entrepreneurs (business experience)

X

2009

Quarterly

UK Labour Force Survey

Sector familiarity of the entrepreneur – branch/NACE

X

2009

Quarterly

UK Labour Force Survey

Working hours of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

Income of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

Other types of data (Specify):        
Business transfers and successions Number of enterprises held by each entrepreneur/owner

X

2009

Quarterly

UK Labour Force Survey

Gender

X

2009

Quarterly

UK Labour Force Survey

Ethnicity

X

2009

Quarterly

UK Labour Force Survey

Civic status (married, single, children)        
Age

X

2009

Quarterly

UK Labour Force Survey

Geographical location

X

2009

Quarterly

UK Labour Force Survey

Educational background (last registered education)

X

2009

Quarterly

UK Labour Force Survey

Current/previous employment of entrepreneurs (business experience)        

Sector familiarity of the entrepreneur – branch/NACE

X

2009

Quarterly

UK Labour Force Survey

Working hours of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

Income of the entrepreneur

X

2009

Quarterly

UK Labour Force Survey

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

UK Labour Force Survey

Freely accessible

Financial Analysis Made Easy (FAME)

Freely accessible

Inter-Departmental Business Register (IDBR)

Freely accessible

Value Added Tax (VAT) Register

Freely accessible

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

Bernhardt, I. (1994), ‘Comparative advantage in self-employment and paid work’,

Lindsay, C. and Macaulay, C. (2004), ‘Growth in self-employment in the UK’, Labour

Market Trends, Office for National Statistics, October, pp. 399-404.

Taylor, M. (2004), 'Self-employment in Britain: when, who and why?, Swedish

Economic Policy Review, 11(2), Fall, pp. 141-173.

Comparative study of forms of self-employment

Discusses the forms of self-employment that have grown in the UK

Discusses the forms of self-employment that have grown in the UK

Part-time entrepreneurs

Hamilton, B. H. (2000), ‘Does entrepreneurship pay? An empirical analysis of the

returns to self-employment’, Journal of Political Economy, 108(3), pp. 604-631

Lindsay, C. and Macaulay, C. (2004), ‘Growth in self-employment in the UK’, Labour

Market Trends, Office for National Statistics, October, pp. 399-404.

Taylor, M. (2004), 'Self-employment in Britain: when, who and why?, Swedish

Economic Policy Review, 11(2), Fall, pp. 141-173.

Comparative study of forms of self-employment

Discusses the forms of self-employment that have grown in the UK

Discusses the forms of self-employment that have grown in the UK

Parallel entrepreneurs

Hamilton, B. H. (2000), ‘Does entrepreneurship pay? An empirical analysis of the

returns to self-employment’, Journal of Political Economy, 108(3), pp. 604-631

Lindsay, C. and Macaulay, C. (2004), ‘Growth in self-employment in the UK’, Labour

Market Trends, Office for National Statistics, October, pp. 399-404.

Taylor, M. (2004), 'Self-employment in Britain: when, who and why?, Swedish

Economic Policy Review, 11(2), Fall, pp. 141-173.

Comparative study of forms of self-employment

Discusses the forms of self-employment that have grown in the UK

Discusses the forms of self-employment that have grown in the UK

Serial entrepreneurs

Westhead/Ucbasaran/Wright/Binks , 2005: ‘Novice, serial and portfolioentrepreneur behaviour and contributions’ Small Business Economics

Alsos/Kolvereid, 1998: ‘The Business Gestation Process of Novice,Serial and Parallel Business Founders’

Ucbasaran/Westhead/Wright, 2006: ‘Habitual Entrepreneurs’

Birley/Westhead, 1993: A comparison of new businesses established bynovice and habitual founders in Great Britain, International Small Business Journal

Hall, 1995: Habitual owners of small businesses, in:Critten/Robertson/Marshal: Small firms: partnerships for growth, London:Paul Chapman

Westhead/Wright, 1998: ‘Novice, service and portfolio founders: arethey different?’ Journal of Business Venturing

Identifies differing behaviours amongst new and serial entrepreneurs

Identifies differing trends amongst types of entrepreneurs

Discusses trends amongst serial entrepreneurs

Discusses trends amongst serial entrepreneurs

Discusses trends amongst serial entrepreneurs

Identifies differing behaviours amongst new and serial entrepreneurs

Business transfers and successions

No publications found

 

Thomas Prosser, University of Warwick

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