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Assessing the accuracy of U.S. Department of Labor ES202 files in locating new rural businesses
Affiliation:1. College of Enology, Heyang Viti-Viniculture Station, Ningxia Helan Mountain''s East Foothill Wine Experiment and Demonstration Station, Northwest A&F University, Yangling 712100, China;2. Shandong Technology Innovation Center of Wine Grape and Wine, COFCO Great Wall Wine (Penglai) Co., Ltd, Yantai 265600, China;1. State Key Laboratory of Grassland Agro-Ecosystems, College of Ecology, Lanzhou University, Lanzhou 730000, China;2. College of Environmental and Resource Sciences, Zhejiang University, 310058 Hangzhou, China;3. College of Life Sciences, Zhejiang University, 310058 Hangzhou, China;1. Chapel Allerton Hospital, Chapeltown Road, Leeds, England, LS7 4SA, United Kingdom;2. University of Leeds, Chapeltown Road, Leeds, England, LS7 4SA, United Kingdom;3. Harrogate General Hospital, Lancaster Park Road, Harrogate, HG2 7SX, United Kingdom;4. University of Leeds and Chapel Allerton Hospital, Chapeltown Road, Leeds, England, LS7 4SA, United Kingdom;1. Nottingham University Business School, University of Nottingham, Nottingham, UK;2. Oxford Brookes Business School, Oxford Brookes University, Oxford, OX3 0BP, UK;3. CASS Business School, City University, London, UK;4. Athens University of Economics and Business, Greece;5. ESCP Business School (London Campus), 527 Finchley Road, Hampstead, London, NW3 7BG, UK;1. China Academy for Rural Development, School of Public Affairs, Zhejiang University, Hangzhou 310058, P.R.China;2. Sloan School of Management, Massachusetts Institute of Technology, Cambridge, MA 02139, USA;3. Operations Research Center, Massachusetts Institute of Technology, Cambridge, MA 02139, USA;1. Université Chadli Bendjedid, Département des Sciences Vétérinaires, El Tarf, 36000, Algeria;2. Université Badji Mokhtar, Laboratoire EcoSATq, Annaba, 23200, Algeria;3. Aix Marseille Univ., IRD, AP-HM, MEPHI, Marseille, France;4. IHU-Méditerranée Infection, Marseille, France;5. Aix Marseille Univ., IRD, AP-HM, SSA, VITROME, France
Abstract:U.S. Department of Labor unemployment insurance files, ES202, are increasingly used to study new business start-ups, but their accuracy is questionable, and this could negatively influence some theories of entrepreneurship. This study assesses the accuracy of ES202 new business data from four states: Iowa, North Dakota, Maine, and Arkansas, and discusses the theoretical implications of the study for entrepreneurship. Rural areas in each state were scientifically selected. In each area, telephone directories, community/business leader surveys, on-site inspections, newspaper stories, and postal records were used to develop a list of all new businesses. Telephone interviews with about 1,500 entrepreneurs from the lists were undertaken to verify information about their firms. The ES202 list was then compared with the composite list developed from alternative data sources. The ES202 list failed to include many new businesses in the study areas. Because ES202 lists are so biased, researchers should not use them to build or test theories of entrepreneurship. ES202 lists can be used when supplemented with other lists.
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