Barclays Survey of High Net Worth Individuals Finds US Lags Behind Emerging Markets on Positive Views of Adversity
-- 71% of high net worth US individuals agree that viewing failure positively is essential for an economy to grow
-- 44% of US respondents say that the recent global financial crisis provided them with opportunities
-- Respondents who identify themselves as entrepreneurs are more able to learn from failure than non-entrepreneurs - 56% vs. 41%
NEW YORK, Nov. 12, 2012 /PRNewswire/ -- While tolerance of failure is reasonably high in the US, it is considerably greater in faster-growing regions of the world, according to the latest report in the Barclays Wealth Insights series, "If at First You Don't Succeed…Mapping Global Attitudes to Adversity," 71% of US high net worth individuals (HNWIs) agree that viewing failure positively is essential for an economy to grow, significantly fewer than in the Middle East (91%) and Asia (80%). Overall, approximately three quarters (74%) of global HNWIs agree that viewing failure positively is essential for an economy to grow.
The Barclays report, which explores how different cultures value traits such as persistence and optimism, and how entrepreneurs view setbacks as a stepping stone to future success, found the US also trails the Middle East and Asia on other notable cultural attitudes toward failure. Only 37% of US respondents agree that past failure in entrepreneurial endeavors increases the chance that a new business will succeed, compared with 81% of HNWIs in the Middle East and 67% in Asia. Approximately half (49%) of US HNWIs believe that if you work hard enough, anyone can learn to become a successful entrepreneur, while 83% of respondents in the Middle East report the same belief.
Global HNWIs also report different experiences with the recent global financial crisis: 44% of US respondents say it provided them with opportunities compared with 53% of Asian respondents. Additionally, respondents in the Middle East and Asia are more persistent in the face of failure with 55% and 53% respectively agreeing that if an entrepreneur's business is failing, the entrepreneur should persist instead of cutting losses, while only 41% of US respondents said the same.
"The US and Europe may have historically dominated entrepreneurship, but the survey findings suggest that the global landscape has shifted. Today, dynamic and fast-growing economies are catching up," says Steve Alper, Managing Director, Head of Market Development, Barclays Wealth and Investment Management, Americas. "A culture that tolerates risk and experimentation is crucial to supporting entrepreneurship. As governments across the globe look to grow their economies, understanding the psychology of failure and embracing the ability to learn from setbacks are important factors in creating a vibrant entrepreneurial culture and increasing the chances of a sustainable economic performance."
Rebounding from Setbacks: Entrepreneurs v. Non-entrepreneurs
Beyond cultural views of failure, the report reveals a contrast in the way entrepreneurs and non-entrepreneurs think about risk, opportunity and failure. Respondents who classify themselves as entrepreneurs find recovery from setbacks easier than those who say they are non-entrepreneurs. Among the entrepreneurs, 34% say that failure encouraged them to try again and 29% report being able to bounce back quickly, compared with 19% and 17% of non-entrepreneurs.
Entrepreneurs are also more likely to see opportunity where others see adversity, with 55% agreeing that the global financial crisis has provided opportunities, while only 42% of non-entrepreneurs agree. Persistence is more prevalent among entrepreneurs as well. Sixty-seven percent of entrepreneurs say that they find it difficult to stop trying to achieve a goal if they have to stop pursuing it compared to 59% of non-entrepreneurs.
Perhaps most significantly, respondents who identify themselves as entrepreneurs are more able to learn from failure than non-entrepreneurs – 56% vs. 41%. They are also more likely to say that failure helped to strengthen their character (39% vs. 21%).
Framing failure as a learning opportunity has implications beyond entrepreneurial ventures and business investments, as the report reveals. The Barclays survey found that people who are persistent, optimistic or both, are less likely to have experienced failure in their personal investments than those who do not possess these traits. It also found that investors who have either experienced severe investment failure or no investment failure at all see the value of diversification.
"Optimism and persistence are valuable traits for financial investors, making them more likely to stay the course and respond wisely to short-term portfolio fluctuations," notes Greg Davies, Managing Director, Head of Behavioral Finance at Barclays. "As with entrepreneurial ventures, losses are only setbacks if you react to them as failures. The lesson for all investors is to maintain a long-term investing mindset, learn from mistakes and know when to cede control and let diversification work for you."
US Regional Differences
Notable differences in attitudes toward failure emerged between regions in the US:
- Only 29% of respondents in the West think past failure increases the chance of future success, the lowest percentage across regions.
- The Northeast sees the most opportunity in tough times, with 48% reporting that the recent global financial crisis has provided them with opportunities.
- The Midwest is the most optimistic region, with 49% of respondents agreeing that they have learned a great deal from business failures and 77% saying that viewing failure positively is essential for an economy to grow.
About Barclays Wealth Insights & Survey Methodology
If at First You Don't Succeed… Mapping Global Attitudes to Adversity, the latest report in the Barclays Wealth Insights series, provides an in-depth study into the different ways in which individuals around the world view and respond to setbacks. The report explores how different cultures value traits such as persistence and optimism, the role of luck and how entrepreneurs view setbacks as a stepping stone to future success.
Ledbury Research conducted a survey in partnership with the Barclays Behavioral Finance team of more than 2,000 high net worth individuals, all of whom had over USD$1.5 million/GBP£1 million (or equivalent) in total net worth and 200 with more than USD$15 million/GBP£10 million. Respondents were drawn from 17 countries around the world, across Europe, North America, South America, the Middle East, Africa and Asia-Pacific. More than 750 of the respondents identified themselves as entrepreneurs. The interviews took place during the first half of 2012. In the statistical analysis, also by the Barclays Behavioral Finance team, individual countries with less than 50 respondents have only been included in the regional findings.
Barclays moves, lends and invests money for customers and clients worldwide. With over 300 years of history and expertise in banking, we operate in over 50 countries and employ over 140,000 people.
Our customers and clients benefit from access to the breadth of expertise across Barclays. We are one of the largest financial services providers in the world, engaged in retail banking, credit cards, corporate and investment banking, and wealth and investment management.
We are a leading global wealth and investment manager providing international and private banking, wealth planning, trust and fiduciary services, investment management, brokerage services and research to private and intermediary clients around the world.
"Barclays" refers to any company in the Barclays PLC group of companies.
Barclays offers wealth management products and services to its clients through Barclays Bank PLC ("BBPLC"), functioning in the United States through Barclays Capital Inc. ("BCI"), an affiliate of BBPLC. BCI is a registered broker dealer and investment adviser, regulated by the U.S. Securities and Exchange Commission, with offices at 200 Park Avenue, New York, New York 10166. Member FINRA and SIPC. Barclays Bank PLC, registered in England and Wales (no. 1026167), has a registered office at 1 Churchill Place, London, E14 5HP, United Kingdom, and is regulated by the Financial Services Authority.
Mortgage products and services in the U.S are offered by Barclays Bank Delaware ("BBD"), member FDIC. Custom lending is offered via BBPLC, New York Branch. Securities investing and brokerage products and services are offered exclusively through BCI. A relationship with the Barclays Wealth and Investment Management unit need not be established or maintained to obtain BBD or BBPLC, New York Branch products or pricing. Bank regulations require that the loan review and approval proves to be independent of, and cannot be impacted by, brokerage/investment-related matters or other business dealings.
Trust and fiduciary services are offered through Barclays Wealth Trustees (U.S.), N.A. ("BWT") a limited purpose national bank. BWT is subject to regulation and examination by the Office of the Comptroller of the Currency. BWT is an indirect, wholly-owned subsidiary of BBPLC and an affiliate of BCI and various other subsidiaries of, and entities affiliated with, BBPLC.
Diversification does not guarantee a profit or protect against a loss.
This is not a solicitation of any products or services.
Browse our custom packages or build your own to meet your unique communications needs.
Learn about PR Newswire services
Request more information about PR Newswire products and services or call us at (888) 776-0942.