DOI: 10.3886/icpsr38153
title: Panel Study of Entrepreneurial Dynamics, PSED I, II Harmonized Transitions Outcomes Data Set, United States, 1998-2011
title: Archival Version

description: The Panel Study of Entrepreneurial Dynamics (PSED) research program was designed to longitudinally examine the startup process with multi-year cohort tracking, so as to enhance the scientific understanding of how individuals start businesses. The project provided data on the process of business formation based on nationally-representative samples of nascent entrepreneurs, those active in business creation. PSED I (available as ICPSR 37203) began with screening in 1998-2000 to select a cohort of 830 with three follow-up interviews. PSED II (available as ICPSR 37202) began with screening in 2005-2006, followed by six yearly interviews. The information obtained as part of the PSED research program included data on the nature of those active as nascent entrepreneurs, the activities undertaken during the start-up process, and the characteristics of start-up efforts that become new firms. A consolidated data set was developed to provide harmonized measures of transitions and outcomes for all PSED I and PSED II cases.
description: Two U.S. longitudinal studies of business creation, Panel Study of Entrepreneurial Development I and II, were completed. Both projects began with the screening of representative samples of U.S. adults to locate those active in the business creation process. Those that qualified as nascent entrepreneurs were contacted for follow-up interviews to determine the outcome of their efforts to create new firms.
The result of this effort was two large scale, multi wave data sets. The screening and four waves of the PSED I resulted in a data set of 1,261 cases (830 nascent
entrepreneurs) and over 6,000 variables. The screening and six waves of the PSED II resulted in a data set of 1,214 cases (all nascent entrepreneurs) and over 8,000 variables. While the PSED data sets have been
widely used for a variety of analyses, their usefulness may be enhanced with access to a consolidated data set that could provide harmonized measures of transitions and outcomes for all PSED I and PSED II cases. This study represents such a consolidated data set.
description: The research procedure for Panel Study of Entrepreneurial Dynamics (PSED) consisted of three phases. The first consisted of identifying a representative sample of those actively involved in the new firm creation process, the nascent entrepreneurs. They were identified from phone interviews completed with adults from a representative sample of households that met four criteria: (1) they considered themselves as involved in the firm creation process, (2) they had engaged in some start-up activity in the past 12 months, (3) they expected to own all or part of the new firm, and (4) the initiative had not progressed to the point that it may be considered an operating business.
The second phase involved the completion of a 60 minute phone interview that covered a wide range of topics related to the initiation of a new firm. While the screening was completed by a commercial survey firm, the detailed data was collected by the University of Michigan Institute for Social Research. The topics covered included information on the nature of the business, start-up activities implemented on behalf of the new firm, incorporation into business registries, the nature of the start-up team and helping networks, sources and amounts of financial support, evaluations of the immediate context, competitive strategy and growth expectations, along with details of the motivations, perspectives, self-descriptions, background, and family context of the responding nascent entrepreneur.
The third phase involved the follow-up phone interviews, also about 60 minutes long. The initial contact for the first follow-up interview occurred 52 weeks following completion of the initial detailed interview, the second follow-up 104 weeks, and so forth. The topics of the interview varied depending on the status of the initiative at the time of the follow-up. Those nascent entrepreneurs that reported they had disengaged from the initiative (quit) received a few questions about start-up activity and a few items about the reasons for their decision. All others received most of the same interview schedule provided in the first interview, which provided them with a chance to update their case file with reports of new activity or changes in the start-up team or financial structure. They did not receive most of the modules related to enduring features of the responding nascent entrepreneur (self- descriptions, family background, etc.) covered in the first detailed interview.
There are a number of sources providing background on the design and operational features of the PSED I and PSED II projects; both this study's documentation and documentation for PSED I (ICPSR 37203 and PSED II (ICPSR 37202) may be consulted for more detail.
description: Weights were computed for each category of cases that may be used for different analyses. Each are based on the weights assigned to the cases after the first detailed interview (Wave Q for PSED I, Wave A for PSED II). Weights were only assigned for cases that meet the distinctive criteria; cases with system missing values for a weight
are ineligible cases.
description: The initial phase was to interview a representative sample of adults to identify those active in the firm creation process. Those who qualified were invited to participate in a more detailed interview about their current situation and activities. For the Panel Study of Entrepreneurial Dynamics (PSED) I, the screening and four waves of the PSED I resulted in a data set of 1,261 cases (830 nascent entrepreneurs) from 1998-2000. For PSED II, 31,845 individuals were screened to locate 1,214 nascent entrepreneurs from October 2005 to January 2006.
Cases from this study are represented in both PSED I and II.
description: Datasets: 
DS1: Public-Use Data
description: PSED I: A nationally-representative sample of nascent entrepreneurs identified in the United States during 1998-2000.
PSED II: A representative sample of nascent entrepreneurs identified in the United States in late 2005 and early 2006..
description: mail questionnaire; telephone interviewFor additional information on this study, please visit the Panel Study of Entrepreneurial Dynamics website.