Entrepreneurs are changing their thinking in response to the current economic environment
Hong Kong, 19 May 2009 – Ernst & Young today proudly announces the launch of the Ernst & Young Entrepreneur Of The Year 2009 China awards. This is the fourth year that Ernst & Young has run the awards program in China. The prestigious business awards honor the most outstanding entrepreneurs who inspire others with their vision, leadership and achievement.
In this time of global economic crisis, entrepreneurs play an all the more significant role in driving the world economy. Strong business leaders are changing their thinking in response to the current economic environment. They understand the difficulties in sourcing finance and maintaining liquidity and they see the pressures on their people, customers and suppliers, while also recognizing the increased importance of managing risk.
Seizing opportunities – A survey conducted during the second quarter of 2009 among 3,100 past year country winners and finalists from the Ernst & Young Entrepreneur Of The Year awards from more than 50 Entrepreneur Of The Year countries. These entrepreneurs come from countries that cover more than 90% of the global economy. The purpose was to discover the specific actions being taken by entrepreneur-led companies in response to the global economic downturn.
The survey reveals that, while keeping a watchful eye on cash liquidity, entrepreneurs will continue to drive their business forward to growth. The economic downturn is a window of great opportunity for those that can harness positive thinking and act ahead of the competition.
Key findings of the survey:
Actions proactive companies are taking to remain on course during the current economic times:
- Cash: 40% do not see an increased focus on cash generation. This suggests that many leading entrepreneurs have a wider focus beyond cash generation and are willing and ready to act on good opportunities that will help them build a robust business platform.
- Customer: 93% are retaining or increasing their focus on broadening their customer base and entering new markets. Leading entrepreneurs are seizing the opportunity to expand customer base and sharpen market differentiation by focusing on core niches in new and existing markets.
- People: Over 80% of respondents are retaining or increasing their focus on recruiting and rewarding key people and at the same time reducing or relocating their workforce for cost reduction. Entrepreneurs are concentrating on keeping their key people and raising productivity. Outsourcing, relocating or reducing workforce to generate cash are significantly increasing in importance.
- Transactions: 80% are maintaining or increasing their focus on seeking mergers and acquisitions. Entrepreneurs see huge value in M&A for broadening customer base and entering new market. This comes with a renewed focus on having the right balance sheet and business model to capture the acquisition opportunities.
- Operations: 90% have maintained or increased their focus on reducing cost to build short-term profits or cash. Many entrepreneurs are deferring longer-term capital expenditure and generating short-term cash to invest in initiatives for increasing market share. The critical success factor is to maintain an efficient operating model that maximizes the strategic advantages of its people, processes and systems.
- Finance: 81% are retaining or increasing their focus on accessing alternative channels of capital. Entrepreneurs think it is important to maintain strong channels of understanding and communication with all key financiers. Another increased focus is to access new or alternate channels of capital.
- Risk: 92% are retaining or increasing their focus on creating early warning systems for distress. Entrepreneurs are aware of the heightened dangers that have appeared in the world economy in the past 12 months. The majority of them have retained their appetite for measured risk-taking. There is an overwhelming recognition that companies need processes to recognize and deal with problems before they threaten the strategic direction of the company.
David Sun, China Chairman and Country Managing Partner, Ernst & Young, says “Today, China is the third largest economy in the world and a beacon of hope in these uncertain times in the world economy. As we look back on China’s great achievements over the past decades, the contributions that entrepreneurs have made to the people, communities and economy are tremendous and should be recognized. There is therefore no better time than now for us to identify and recognize the truly great entrepreneurs. In times like these, it is the brave who stand up against the winds of adversity, ready to steer their business to new frontiers.”
Sam Wong, Regional Managing Partner for China Central, Ernst & Young, and Philip Leung, Partner and Strategic Growth Markets Leader for the Far East Area, Ernst & Young, will act as Program Co-Chairmen for the 2009 program. “Entrepreneurs are the passionate, innovative and visionary men and women who turn ideas into reality, change the face of industries, create jobs and contribute to the economies in which they live and work. Regardless of the continuing market volatility, entrepreneurs remain intent on growth, and will ensure that their business is prepared to exploit the current opportunities in adversity,” says Wong.
Monica Wong, Chief Executive, Asia, HSBC Private Bank, says: “We all know that vision, leadership and passion are the key attributes that all entrepreneurs share. More often than not, it starts with just an idea, an insight. But what really distinguishes success is the ability of an entrepreneur to make the right connections so that the idea, the dream, can be realized. By partnering with The Ernst & Young Entrepreneur of the Year awards, we take the opportunity to recognize the unique individuals behind these ideas and who have been, and continue to be the force behind China’s unprecedented growth. We believe that the contribution of these entrepreneurs is not just in the businesses they create. Rather, it is the entrepreneurial spirit which they embody. It is this spirit which drives innovation, inspiration and excellence. It is what makes anything possible. ”
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This press release has been issued by Ernst & Young, China, a part of the Ernst & Young global network.
About Ernst & Young Entrepreneur Of The Year Award
Ernst & Young Entrepreneur Of The Year is the world’s most prestigious business award for entrepreneurs. The unique award makes a difference through the way it encourages entrepreneurial activity among those with potential, and recognizes the contribution of people who inspire others with their vision, leadership and achievement. As the first and truly global award of its kind, Ernst & Young Entrepreneur Of The Year celebrates those who are building and leading successful, growing and dynamic businesses, recognizing them through regional, national and global awards programs in more than 135 cities in 50 countries.
