Global Entrepreneurship Survey Indicates Continued Buoyant Approach to Global Economy
Entrepreneurs’ views remain positive in face of economic and political uncertainty
Alexandria, Virginia, USA (8 May 2017) –The results of the latest semi-annual
Global Entrepreneur Indicator (GEI) show that a buoyant approach to the economic outlook continues to dominate the sector with 81% of those surveyed reporting that they would be willing to start a new business in the current economic environment. Over three quarters (78%) also said that they predicted an increase in profits over the next six months. The survey, which is conducted by the Entrepreneurs’ Organization among just over 4000 entrepreneurs from 50 countries, was carried out between 1 February and 1 March 2017, and examines the current economic market and realities for respondents and their sentiments towards the next six months. The survey also observes year-over-year data comparisons from the March 2016 GEI. Globally, median sales of EO member companies are just under US$5 million with an average of 236 employees.
Given that the past year has been politically and economically turbulent in influential parts of the world, the latest GEI confirms that this has not unduly affected the economic market or business approaches of entrepreneurs. Since the survey was carried out in March 2016, the number of respondents reporting increased profits has remained steady at 59%. In addition, 53% of entrepreneurs reported an increase in the hiring of full-time employees—against 55% in September 2016. While the hiring of part-time employees increased slightly from 40% to 41% in the period, there is still a strong indication that long-term employees are being appointed to support sustained business growth.
Once again, increased business revenues over the past 6 months remained stable at 64% by comparison with 65% in September, as did the number of those reporting a rise in net profits at 59%. Among the other indicators that the March 2017 GEI survey assesses are a number of key findings relating to the global and U.S. entrepreneurial economies, including:
- Positive economic expectations for the next six months with 80.7% of entrepreneurs polled expecting the change in their country’s economy to improve or stay the same by comparison with 75.3% in September 2016, and a major rise of 10% over respondents polled in the March 2016 GEI survey.
- 82% of entrepreneurs predicted an increase in business revenue in the next six months, by comparison with 81% in September 2016.
- The number of entrepreneurs willing to start a business in the current economic environment fluctuates depending on their geographical location. The lowest percentage at 72.4% is in APAC, in Europe it reached 77.6% and in the USA it was highest at 90%. The overall global percentage, however, has increased 2% since March of last year.