UBS Report Reveals Entrepreneurs' Top Concerns
Swiss bank UBS has released its inaugural Global Entrepreneur Report, offering a comprehensive analysis of the perspectives of entrepreneurs worldwide. The report reveals that while entrepreneurs maintain an optimistic outlook, they are also navigating significant challenges in today's dynamic business environment.
«The report consolidates the collective knowledge of some of the smartest and most innovative entrepreneurs we work with and sheds light on their perspectives,» said Benjamin Cavalli, head of strategic clients at UBS Global Wealth Management, during the media presentation of the first-ever UBS Entrepreneur Report.
«The perspective of entrepreneurs provides valuable insights into the state of the economy and the drivers of change.»
Overall, entrepreneurs remain optimistic about the next twelve months: 61 percent of respondents stated they were very or somewhat confident, while just under one-fifth (17 percent) held a rather pessimistic outlook. Entrepreneurs in the Americas were particularly optimistic.
Hiring Challenges
In Switzerland, 50 percent of surveyed entrepreneurs were very or somewhat optimistic about their industry's prospects over the next twelve months. 37 percent expected increased investments during this period, while 85 percent agreed with this outlook over a five-year horizon.
However, the report also reveals that more than half (52 percent) of the surveyed entrepreneurs face hiring difficulties. Almost as many (45 percent) confirmed that higher salaries or additional incentives were necessary to retain employees. The biggest challenges in talent acquisition occur in the Americas and Europe, while the situation in the Asia-Pacific region appears to be less tense.
Concerns Over Political Instability
In the short term, political instability and uncertainty top the list of risks for the next twelve months, cited by 53 percent of respondents. This is followed by concerns over rising taxes (42 percent) and geopolitical conflicts (41 percent).
Looking ahead to the next five years, entrepreneurs are most concerned about higher taxes – 46 percent see them as the greatest potential burden on their industry, followed by political and geopolitical uncertainties. When it comes to company-specific challenges, entrepreneurs face a wide range of concerns.
Improved Work-Life Balance
For 46 percent of respondents, regulatory changes and/or increasing compliance requirements are the biggest concerns for the next twelve months. Cybersecurity risks are also gaining importance – especially in the technology and healthcare sectors, where 35 percent of entrepreneurs consider them a key challenge.
In the long term, entrepreneurs aim to achieve a better balance between personal interests, business and investments. More than half (52 percent) expressed a desire to dedicate more time to travel, hobbies, and family, while nearly as many plan to diversify their investments across various asset classes (49 percent) or invest in other businesses like private equity or angel investing (47 percent).
Entrepreneurs Generating Nearly $20 Billion in Revenue
Of the 156 surveyed entrepreneurs, 38 percent were based in the US and Latin America, followed by 21 percent in Europe and the Asia-Pacific region, and 19 percent in Switzerland. Three respondents came from other regions.
Together, these businesses generate an annual revenue of nearly $20 billion – an average of $123 million per company. Entrepreneurs from 26 markets participated in the survey, which was conducted online between 26 September and 20 November 2024.
