A Kauffman Index Based Assessment to Measure Coworking Startups Project's Efficiency in 2018

By Mátyás, Bence; Izquieta, Victoria et al. | Academy of Entrepreneurship Journal, May 1, 2019 | Go to article overview

A Kauffman Index Based Assessment to Measure Coworking Startups Project's Efficiency in 2018


Mátyás, Bence, Izquieta, Victoria, Salazar, Paula, Villacis, Jhony, Ordoñez, Maria, Carrera, Paola, Soriano, Belén, Carpio, Isabel, Salgado, Juan Pablo, Academy of Entrepreneurship Journal


INTRODUCTION

Entrepreneurship is a decisive and key activity of modern economy. Even though entrepreneurial activities cannot be rigorously managed and completely controlled due to the econom- ic competition and continuously changing demand-supply, entrepreneurship data and analyses allow for improvements in decision-making in both private and public sectors (Fairlie et al., 2015). Universities, regardless of the field of expertise, are expected to play a key role in promoting and teaching entrepreneurship as for achieving success (Llisterri et al., 2006) and performing self-realization after graduation, both technical and entrepreneurial knowledge have to be utilised (Salgado et al., 2017).

There are several ways to measure broad range of entrepreneurial intention (Liñán et al., 2017) and entrepreneurial activity on national (Fairlie et al., 2014) and on international level (Covin et al., 2017). One of the most comprehensive indicators is The Kauffman Index (Fairlie et al., 2014) considering that it was designed and applied for measuring a broad range of entrepreneurial activity in the United States including national, state and metropolitan levels. The Kauffman Index includes, inter alia, the following indicators: Rate of New Entrepreneurs, Opportunity Share of New Entrepreneurs, Startup Early Job Creation, Startup Early Survival Rate (Kauffman Indicators, 2019). Despite the fact that there are index-based measures of university technology transfer (Kurman, 2011), it should be mentioned that to determine efficiency of smaller ecosystems such as academic startup mentor programs in university frameworks is still a challenge because the effect of these initiatives on the economy is less measurable.

Startup mentoring in Ecuador is receiving increasing attention in the academia due to the significant governmental and private initiatives (Lasio, 2014; Mátyás et al., 2018). One of the most remarkable academic startup mentor projects and entrepreneurship-training strategies in the country is Coworking StartUPS considering the number of its active startups and numerous events aimed at business development. Coworking StartUPS was established in 2015 at the Universidad Politécnica Salesiana (UPS), and is being applied for the university's 3 headquarters (Cuenca, Quito and Guayaquil). The UPS runs a total of 4 coworking places and synchronizes startup mentoring programs in each campus. Working with People (De Los Rios et al., 2016), Project-based learning (Ceca, 2018), Happy Canvas School (The happy canvas school, 2016), Scrum (Scrum, 2018), Resilencia (Manciaux, 2013) and Idea, Design, Prototype, Validation (Milla, 2018) learning and mentoring methods are applied and/or combined in the Coworking StartUPS's project. There are several events in a semester in the university's framework such as meetups, courses and Boot Camps where the innovative students can participate, forming groups and establish academic startups (Mátyás et al., 2018).

In the present study we evaluated the academic startups registered in the last year in Coworking StartUPS according to their viability using Kauffman Index indicators.

METHODS

A total of 48 academic startups are quantified in the present study, that were registered in Coworking StartUPS project at the UPS for the period late 2017-early 2018 and that are still running (in January 2019). We were looking for the answer to how many of them have become viable companies in one year. We considered startups viable that have generated monthly revenue for at least in the last 3 months (between November 2018 and January 2019) (Table 1).

The new Kauffman Index (Fairlie et al., 2014) was applied to measure Rate of New Entrepreneurs (RNE) (Fairlie et al., 2014), Startup Density (SD) and simplified Startup Activity (sSA) (Fairlie et al., 2015). We applied the new and expanded Kauffman Index to measure the effect of the academic entrepreneurial ecosystem on the after graduation in terms of students' self-realization. …

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