Endeavor

Company is based and resembles two other assessment and diagnostic tools to measure the business environ- ment: "OECD/Eurostat Framework for Entrepreneurship" (OECD, 2007), appropriate to compare OECD countries; and Aspen: Entrepreneurial Ecosystem Diagnostic Toolkit, built based on the OECD study and many others, but with a focus on developing countries. Both tools aim to help policy formulators collect data and build comparable indi- cators between countries. The development of a model in which you compare cit- ies, or states or regions, requires a number of important adjustments in relation to existing methodologies and analyses. First, states and municipalities have legal lim- itations on which policies and legislations they can imple- ment or regulate. The consequence of such limitations is that in the same country all entrepreneurs are subject to macroeconomic conditions and similar legal restrictions, independent of the location of their business. Thus, some essential indicators in the analysis of countries becomes irrelevant when comparing different regions in the same country, simply due to lack of variation. The framework of this study takes into account the specifics required for the analysis of cities. Also, there is less production data and indicators for cities than for countries. Official statistic agencies are often nation - al governments organizations, and rare are the cases where all regions collect the same information about the economy, public finances, population etc. Therefore, when necessary, the study relies on variations of the adopted indicators when comparing countries, even within the same themes. Finally, beyond adapting the developed framework used in country's to analyse cities, precautions were taken to adequately adapt them to the Brazilian reality. The indica - tors portray the relevant problems and issues for Brazilian entrepreneurs in each of the subjects — or determinants of performance, as seen below. To do so, the opinions of va- rious experts and Endeavor partners were taken into con- sideration when constructing the indicators and finding appropriate data sources for each of the relevant topics. Beyond outlining in detail the framework developed by Endeavor Brazil, in the next pages are all the data sources, calculation formulas for indicators and every other infor- mation used in this analysis. ImpaCt, EntrEprEnEurIal pErFormanCE and pErFormanCE dEtErmInants The framework's starting point is the analytical sep- aration between entrepreneurial performance, deter- minants and impact. According to the studies devel- oped by the OCDE, impacts are social and economic consequences of the entrepreneurial performance, and the major impacts expected are job growth, eco- nomical growth, diminishing poverty and reducing the d E t E r m I n a n t s REGULATORY ENVIORNMENT INFRASTRUC- TURE MARKET CONDITIONS ACCESS TO CAPITAL INNOVATION HUMAN CAPITAL CULTURE Process Time Interstate Transporta- tion Economical Development Available capital via Debt Intensity of Investments Accesso and Quality of Basic Labor Entrepreneur- ial Potential Costs of Tax Urban Conditions Potencial Clients Access to Venture Capital Potential for Generating Innovation Access and Quality of High Skill Labor Entrepreneur- ial Image 86

• Cover