Global Entrepreneurship Survey Reveals Optimism in Global Economy
-- More than 4,500 entrepreneurs in 47 countries report optimism in the global economy, project an increase in full-time hires and comment on Brexit --
Alexandria, Virginia, USA (19 September 2016) – Optimism for the global economy, an improved reliance on full-time employees and an increase in projected net revenue are three leading benchmarks in the September 2016 edition of the
Global Entrepreneur Indicator (GEI), a semi-annual survey conducted by the
Entrepreneurs' Organization. In total, 4,558 entrepreneurs from 47 countries participated in the survey, which was held from 1-31 August and reveals the latest short-term economic sentiments. The survey also provides an in-depth look at year-over-year data comparisons from the September 2015 GEI, which saw 3,670 business owners from 47 countries respond. Globally, median sales of EO member companies are just under US$5 million with an average of 236 employees.
In the latest GEI, findings reveal that business sentiment has remained relatively steady across the globe during the past six months, despite Brexit. The amount of entrepreneurs who reported increased profits in March and September remain the same at 59%, with the reliance of debt instruments increasing by just 1%. Furthermore, 55% of entrepreneurs reported an increase in the hiring of full-time employees—against the same rate in March—while the hiring of part-time employees decreased from 48% to 40%, an indication that long-term employees are needed for sustained business growth. What's more, 65% of those polled reported increased business revenues in the past six months, while 59% have experienced an uptick in net profits. The September 2016 GEI survey gauges other business insights related to the global and U.S. entrepreneurial economies, including:
- Optimism for the global economy is on the rise, with 75.3% of entrepreneurs polled expecting the current economic environment to improve or stay the same, as compared to 70.8% of total respondents in the March 2016 edition of the survey.
- Despite uncertainty in the global economy, 81.6% of respondents reported a willingness to start a business in their current economic environment, an increase over the March 2016 survey results, where 79% of entrepreneurs polled indicated optimism.
More than 90% of entrepreneurs in the Americas remain neutral or unsure about how the Brexit will immediately impact their businesses. However, entrepreneurs in Africa, Asia, Australia and Europe are significantly more opinionated. The latest survey shows a split in Europe between those who believe it will have a positive or negative impact, with 10.9% and 10.7%, respectively.