New businesses registered (number)
The definition of entrepreneurship used is limited to the formal sector. Yet, it should be noted that the exclusion of the informal sector is based on the difficulties of quantifying the number of firms that compose it, rather than on its relevance for developing economies. The Entrepreneurship Database facilitates the analysis of the growth of the formal private sector and the identification of factors that encourage firms to begin operations in or transition to the formal sector. Data is collected all limited liability corporations regardless of size. Partnerships and sole proprietorships are not considered in the analysis due to the differences with respect to their definition and regulation worldwide. Data on the number of total or closed firms are not included due to heterogeneity in how these entities are defined and measured.

The Entrepreneurship Database is a critical source of data that facilitates the measurement of entrepreneurial activity across countries and over time. The data also allows for a deeper understanding of the relationship between new firm registration, the regulatory environment, and economic growth. Previous research using the Entrepreneurship Database has shown a significant relationship between the level of cost, time, and procedures required to start a business and new firm registration.

To facilitate cross-country comparability, the Entrepreneurship Database employs a consistent unit of measurement, source of information, and concept of entrepreneurship that is applicable and available among the diverse sample of participating economies.
New businesses registered are the number of new limited liability corporations registered in the calendar year.