Despite Sluggish Economy, Entrepreneurs Growing Businesses and Creating Jobs
Latest findings of global survey of business owners finds positive trends in hiring and business performance.
ALEXANDRIA, Va., Aug. 14, 2012 /PRNewswire-USNewswire/ -- The Entrepreneurs' Organization (EO) has released the latest results from its Global Entrepreneur Indicator research project, a twice yearly survey of business owners from around the world. The survey focuses in part on performance-related metrics such as jobs, profits and debt loads. The other factors the survey explores are related to the business climate, such as access to capital, predictions on the economy and even entrepreneurs' proclivity to start a new business.
The survey, conducted throughout the month of June, ended with a sample of more than 2,200 entrepreneurs around the world, whose businesses average US$18.3 million in annual revenue and 192 employees.
A snapshot of the survey findings includes:
Jobs: Entrepreneurs are hiring at a much faster pace than they were a couple years ago.
- Globally, 59% of entrepreneurs reported net increases to their number of full-time employees during the six months preceding the survey, compared with only 42% who made that claim two years ago.
- 62% of business owners expect to increase their number of full-time employees in the coming six months which, if the prediction holds true, would continue the acceleration observed during the past couple of years.
- Regionally, Latin America/Caribbean and the United States created jobs at the highest rate during the past six months (66% and 60%, respectively).
Business environment: Entrepreneurs are much more positive about the current business environment than they have been in years.
- Less than a quarter (23%) of entrepreneurs expect economic conditions to worsen in the coming six months, a substantially lower figure than six months ago (38%). In the current survey, 33% of business owners expect economic improvement and 44% believe conditions will hold steady.
- 90% of respondents said that access to capital either improved or held steady during the previous six months, with nearly a third (31%) reporting that it became easier.
- Perhaps bolstered by what they see as improving business conditions, a full 80% of entrepreneurs globally reported that they would be willing to start a new business right now. That figure is up from 63% six months ago, and is the highest figure reported since June 2010.
Revenue and profit: Though still trending upwards, marked regional differences exist, with Europe/Middle East and South Asia dragging down the global average.
- 60% of entrepreneurs globally reported an increase in net profits in the six months prior to the June 2012 survey. This figure has generally held steady for the past year, though it is much higher than the June 2010 report (37%).
- Europe/Middle East and South Asia had the lowest reporting in terms of profit increases (53% and 44%, respectively). These figures are likely reflective of the political and economic uncertainty in those regions.
- 68% of business owners reported increasing revenues during the previous six months, and a full 80% expect increases in the coming six months.
Jason Jacobs, the lead researcher on the Global Entrepreneur Indicator initiative, said;
"We are seeing some very positive signs from the world's entrepreneurial community. Hiring, revenues and profitability are all on the rise, and there seems to be a general optimism about the business climate. Compared to the pessimism we observed in the survey six months ago, the trending seems to be headed in the right direction.
Considering the entrepreneurial sector's place as the driver of growth and innovation, any momentum in the right direction is welcome."
To learn more about the Global Entrepreneur Indicator, and to read the full reports, visit www.entrepreneurindicator.com.
About the Entrepreneurs' Organization
The Entrepreneurs' Organization (EO) is a dynamic global network of more than 8,700 business owners in 35 countries. Founded in 1987 by a group of young entrepreneurs, the year 2012 marks EO's 25th anniversary. With its transformative experiences and unparalleled peer network, EO transforms the lives of the entrepreneurs who transform the world. EO is the catalyst that enables entrepreneurs to learn and grow from each other, leading to greater business success and an enriched personal life. Membership in one of EO's 122 chapters is by invitation only; the average member is 41 years old with annual revenues of US$18.3 million. For more information on EO, visit www.eonetwork.org or call +1.703.519.6700.
SOURCE Entrepreneurs' Organization