A global survey by the Entrepreneurs' Organisation shows most business owners are upbeat about the economy and plan to hire more full-time employees. Business owners in the Western Cape were even more optimistic about their growth forecast than their global counterparts, despite the deteriorating local economic outlook.
The Global Entrepreneur Indicator, an international survey of business owners from around the world - conducted by the Entrepreneurs’ Organisation (EO) - released its latest findings today. More than 10 000 worldwide entrepreneurs in 46 countries were surveyed while 80 entrepreneurs in the Western Cape took part in the February 2015 survey.
The top line results highlight that although 50% of the Western Cape entrepreneurs predicted a deteriorating economic environment over the next six months, the general mood was positive and upbeat with 73% predicting an increase in full time employees as more than 90% forecast an increase in both revenue and profit.
The ‘can-do’ attitude of local business owners was reflective in the survey as the vast majority (78%) of the Western Cape entrepreneurs reported a willingness to start a business in the current economic environment.
Daniel Nel, business owner and president of the local Western Cape chapter –the chapter’s members employ about 1,200 employees with R2.4bn in combined annual sales - says the latest results are indicative of the positive nature of entrepreneurs as well as their commitment to job creation.
“EO represents established, medium size entrepreneurial businesses which is a key driver of job creation in the Western Cape. Although 52% of our local members believe their access to capital will stay the same, they are willing to grow their existing businesses and invest in new ones – underscoring the notion that entrepreneurs are willing to take risk, innovate and grow their ventures. Entrepreneurship is alive and well in the Western Cape.”
Other key highlights include:
- Only 10% of EO entrepreneurs believe that the country’s economic conditions would improve over the next six months compared to their global equivalents where 45% believed the economy would be changing positively;
- 78% would start a new business despite the economic environment;
- 61% saw an increase in business revenue and 71% in net profit over the past six months.