Entrepreneurs continue to grow businesses and create jobs, despite pessimism on economy

Article by:
EO Global
  • Year-over-year, the number of entrepreneurs that created jobs in the 12 months prior to surveying is up 7% (52% in November 2010 vs. 59% in November 2011)
  • 62% of entrepreneurs saw an increase in net profits during the past six months, up from 59% from a year ago and much improved from the low of 37% reported in June 2010
  • The increase in profits and jobs created comes in the face of pessimism about the economy, as 38% of entrepreneurs globally expect the economy to further deteriorate in the coming six months (with an additional 21% expecting the current conditions to hold steady)

Alexandria, VA, USA / Singapore (10 January 2012) – The Entrepreneurs’ Organization (EO) and Standard Chartered Private Bank (The Private Bank) have released the latest results from their joint Global Entrepreneur Indicator research project, a twice yearly survey of entrepreneurs from around the world. The survey was conducted with a sample of more than 1,500 entrepreneurs around the world, whose businesses average US$17.3 million in annual revenue and 182 employees.

A snapshot of the survey findings include:


  • Globally, 59% of entrepreneurs reported an increase in total full-time headcount during the six months preceding the survey, compared with only 52% who made that claim a year ago.
  • A full 66% of entrepreneurs expect to increase their number of full-time employees in the coming six months.
  • Latin America and Canada created jobs at the highest rate during the past six months (64% and 62%, respectively).

Revenue and profit

  • 62% of entrepreneurs globally reported an increase in net profits in the six months prior to the November 2011 survey. This figure is up 3% year-over-year, and has increased a full 25% from the low reported in the June 2010 survey.
  • The United States recorded the highest rate of profit increases, as 66% of entrepreneurs in the region reported an increase in the six months prior to surveying.
  • Encouragingly, 73% of business owners globally reported an increase in revenues during the previous six months. A full 80% of entrepreneurs surveyed expect their revenues to go up in the coming six months.

Business environment

  • Though 41% of entrepreneurs globally expect the economy to improve in the coming six months, an almost equal number (38%) predict that the economic environment will further deteriorate. The remaining 21% expect current conditions to hold steady.
  • The Canadian and Asia Pacific regions are the most optimistic about the future of the economy, while the United States and the European/Middle Eastern region are the least optimistic.
  • Despite mediocre predictions on the economy, 63% of entrepreneurs report that they would start a new business in the current climate. This number is down 5% year-over-year, though still a clear majority.

Dr Sally Ernst, the lead researcher on the Global Entrepreneur Indicator initiative, said;

“Based on the data we collected, we can see that the entrepreneurial community’s feelings about the economy are on par with the general consensus. What is very interesting to note, however, is that entrepreneurs worldwide continue to create jobs and have reported an increase in both revenues and profitability. In fact, numbers around hiring and profits are even higher than they were when we surveyed the same population a year ago. This is a very encouraging sign coming from the backbone of the economy.”

Shayne Nelson, CEO of Private Bank and Global Head of High Value Client Coverage and, Standard Chartered said;

“It is heartening to see that the entrepreneurial spirit has not been dampened despite fears over economic uncertainties. Job and wealth creation in the current economic environment is more critical than ever. We aim to support these entrepreneurs to develop their businesses further by leveraging our advantage of being part of a universal bank to offer greater access to investment advice and expertise, particularly in SME Banking and Wholesale Banking.”

As the day-to-day decision makers at successful companies, entrepreneurs can illuminate and predict the state of the global economy better than any other segment of the population. EO and Standard Chartered Private Bank are uniquely positioned to reveal trends in business and the economy, and the survey targets the world’s leading entrepreneurs to best read the pulse of commerce.

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. These statistics and metrics are all important, but the story that the full, combined data tells is perhaps most compelling.

While entrepreneurial firms have continued positive trends in job creation, gross receipts and profitability, there is mounting evidence that business owners are growing more pessimistic about the economic environment in which they operate. Though business performance metrics continue to trend upward, momentum has slowed, which may be due in part to reservations on the economy.

The Global Entrepreneur Indicator research project is one of the activities resulting from the strategic partnership between EO and The Private Bank, which will enable them to leverage their unique networks to exchange knowledge and conduct in-depth, powerful joint research projects. The Private Bank has an extensive international network across over 70 countries in Asia,

Africa, the Middle East, Europe and Americas. The Entrepreneurs’ Organization, one of the biggest global networks of business owners, has a membership of more than 8,000 business owners across 40 countries.

The Global Entrepreneur Indicator produces reports based on global data, as well as region-specific reports for the United States, Europe / the Middle East, Asia / the Pacific, India / Nepal, Canada and Latin America / the Caribbean. All findings, reports and analysis are published on the Global Entrepreneur Indicator Web site.


For further information please contact:

Ryan Meyer (USA)
Entrepreneurs’ Organization
Phone: +1.571.481.2427
Email: rmeyer@eonetwork.org

Ally Sung Hee LIM (Singapore)
Standard Chartered Private Bank
Tel: +65 6596 9097
Email: Ally.Lim@sc.com

About the Entrepreneurs’ Organization

The Entrepreneurs’ Organization (www.eonetwork.org) is a dynamic, global network of more than 8,000 business owners in 40 countries.  Founded in 1987 by a group of young entrepreneurs, 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 120 chapters is by invitation only; the average member is 41 years old with annual revenues of US$17.3 million.

For more information on the Entrepreneurs’ Organization, visit www.eonetwork.org or call +1.703.519.6700.

Standard Chartered – leading the way in Asia, Africa and the Middle East

Standard Chartered is a leading international banking group. It has operated for over 150 years in some of the world's most dynamic markets and earns more than 90 per cent of its income and profits in Asia, Africa and the Middle East. This geographic focus and commitment to developing deep relationships with clients and customers has driven the Bank’s growth in recent years. Standard Chartered PLC is listed on the London and Hong Kong stock exchanges as well as the Bombay and National Stock Exchanges in India.

With 1,700 offices in 70 markets, the Group offers exciting and challenging international career opportunities for around 85,000 staff. It is committed to building a sustainable business over the long term and is trusted worldwide for upholding high standards of corporate governance, social responsibility, environmental protection and employee diversity. Standard Chartered’s heritage and values are expressed in its brand promise, ‘Here for good’.

For more information visit www.standardchartered.com

Standard Chartered Private Bank

The Private Bank has grown strongly since its inception in May 2007. On top of its strong organic growth, it acquired American Express Bank in 2008, through which it has further improved its capabilities. The Private Bank has been showing continued strong growth: In the first half of 2011, its Assets under Management grew by 38% in Asia and 31% globally year-on-year.

The Private Bank leverages the natural strengths of Standard Chartered: A heritage of over 150 years in international banking, an international network across more than 70 countries, and strong local presence in growth markets. This puts the Private Bank in an advantaged position to build and deepen relationship with its clients.

Standard Chartered Private Bank’s strong growth and rising industry leadership has been recognised by the industry: Major awards that the Private Bank has won include the “Best Global Private Bank” award at the Wealth Management Awards 2011 organised by The Financial Times and Investors Chronicle; “The Best Private Bank in Asia” and “The Best Private Bank in India” awards by The Banker in 2011; and “Outstanding Private Bank in Asia Pacific” award at the annual Private Banker International Global Awards 2010, which the Private Bank won for the third year in a row.

For more information, please visit: www.privatebank.standardchartered.com


Legal Disclaimer:

Standard Chartered Private Bank is the private banking division of Standard Chartered Bank (“SCB”). Private banking activities may be carried out internationally by different SCB legal entities and affiliates according to local regulatory requirements. Not all products and services are provided by all SCB branches, subsidiaries and affiliates. Some of the SCB entities and affiliates only act as representatives of the Standard Chartered Private Bank, and may not be able to offer products and services, or offer advice to clients. They serve as points of contact only.

In Singapore, the Standard Chartered Private Bank is the Private Banking division of SCB, Singapore branch.
In Hong Kong, Standard Chartered Private Bank is the private banking division of Standard Chartered Bank (Hong Kong) Limited (CE#AJI614) which is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission in Hong Kong.

In Jersey, Standard Chartered Private Bank is the Registered Business Name of Standard Chartered (Jersey) Limited. Standard Chartered (Jersey) Limited is regulated by the Jersey Financial Services Commission. Standard Chartered (Jersey) Limited is also an authorised financial services provider under license number 9790 issued by the Financial Services Board of the Republic of South Africa. Standard Chartered (Jersey) Limited is a wholly owned subsidiary of Standard Chartered Bank.

Standard Chartered Bank is incorporated in England and Wales with limited liability by Royal Charter 1853, Reference number ZC 18. The Principal Office of the Company is situated in England at 1 Aldermanbury Square London EC2V 7SB. Standard Chartered Bank is authorised and regulated by the Financial Services Authority under FSA register number 114276.​​​

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Every member who applies or renews their membership agrees to comply with the Policies and Procedures, Bylaws and Code of Conduct of Entrepreneurs' Organization. Current members must complete the online renewal form acknowledging review of the organization's Policies and Procedures, Bylaws and Code of Conduct.

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