Entrepreneurs around the world have seen buoyant growth in their profits, adding more employees to their firms, according to new research.
The Global Entrepreneur Indicator, which surveyed 1,200 entrepreneurs worldwide, found that almost 60% of them have increased their workforce, up from 42% a year ago. Entrepreneurs have also seen a rise in profits in the six months before the end of May – 60% said their profits rose.
The survey, conducted by the Entrepreneurs’ Organization and Standard Chartered Private Bank, defined entrepreneurs as those who have founded a business with annual revenue of more than $1 million. The report attributed the growth to the “nimble and flexible nature of these businesses that enables them to react faster to changes in the business environment.”
Dr Sally Ernst, lead researcher for the survey, said in a statement: “Despite financial troubles in the Eurozone, political upheaval in Middle East and continued uncertainty in the US markets, it is interesting to note that entrepreneurs have been creating jobs and increasing profits. This speaks to the uniqueness of entrepreneurs, as their flexibility and adaptability allow them to find opportunity in downturned economies.”
The survey showed that the maximum number of jobs was created in the Latin America and Caribbean region, while Canada had the lowest job creation levels among entrepreneurs. The research also found that around half of those surveyed expect the state of the economy in their countries to improve, “but only slightly.”
The Entrepreneurs’ Organization was founded in 1987 and is a global network of more than 8,000 business owners in 40 countries. The respondents to the survey collectively gross an average of $18.4 million per year and employ more than one million workers.