Denmark’s Entrepreneurship Index 2006
The Index presents a comprehensive mapping and evaluation of entrepreneurship in Denmark. It built on data for a range of OECD countries and identifies Danish strengths and weaknesses as an entrepreneurial nation.
Furthermore, the Index allows for the continued monitoring of entrepreneurship framework conditions and entrepreneurship performance to determine if Denmark is meeting the government’s goal that by 2010 Denmark should be part of the European entrepreneurial elite in terms of start-up activity, and by 2015 that Denmark should have the highest share of growth entrepreneurs.
The 2006 Entrepreneurship Index covers a significant amount of data, quantitative comparisons, qualitative case studies and concrete proposals for new initiatives.
Chapter 2 details country entrepreneurship performances in terms of start-up rates and new firm growth. The United States, Korea, Canada and Ireland are the top-performing countries, and Denmark’s performance is matched against the top-4.
The United States, Korea, Canada and Ireland also lead in the ranking of the quality of framework conditions. The quality of Denmark’s framework conditions are rated in Chapter 3 against those of the top-4 countries. The comparison shows that Denmark is at a level with the top performers in some of the areas, while other areas are in need of policy attention. Chapter 3 provides a complete overview of entrepreneurship initiatives implemented by the Danish Government since its election in 2001.
A simple conclusion would be for Denmark to focus its attention on those areas with the largest gaps vis-à-vis the best performing countries. However, the Entrepreneurship Index offers in Chapter 4 a supplemental in-depth analysis that offers a clearer picture of the critical framework conditions for growth entrepreneurs.
The 2006 Entrepreneurship Index also presents two qualitative theme chapters on bankruptcy and entrepreneurship infrastructure, detailing possible improvements in these two critical areas. The thematic chapter (5) on bankruptcy shows how the Danish system copes with enterprises that experience financial problems or enterprises that are declared bankrupt. The Danish approach is compared to other countries in order to illustrate lessons for Denmark in two specific areas: early warning systems that draw authorities’ attention to the early stages of a company’s financial collapse, and reconstruction of companies both inside and outside the formal legal system.
The entrepreneurship infrastructure is a collective term describing the scope and quality of stakeholders that provide entrepreneurs or new enterprises with access to skills and knowledge. This thematic chapter (6) employs a similar method to the section on bankruptcy; i.e. based on international comparisons. The conclusion is that Denmark should strengthen the advisory services provided for growth entrepreneurs, which may be facilitated through the emerging “growth houses” and a general strengthening of the private advisory market.
Download the Entrepreneurship Index 2006 (English version, PDF file, 130 pages, 1,22MB)