Global job hot spots: a survey of entrepreneurs
Since founding their own companies, over half of the respondents have started a new business.
- Entrepreneurs are an engine of job creation.
Our respondents expanded their total workforce an average of 16% in 2011. In the US, respondents grew their headcounts an impressive 18%, Asia-Pacific 16% and Europe clocked in at 12%.
- They anticipate creating more jobs in 2012.
Sixty-eight percent expect to expand their workforce in the country where they are headquartered, and 44% expect to expand outside.
- Many of the jobs they are creating are high quality.
Most respondents hired experienced non-management employees and entry-level employees with university degrees than they did administrative employees or entry-level workers without university degrees.
- They expect to hire because they anticipate growth.
The top factors affecting hiring plans inside their headquarters country were:
- Growth in their product/service markets
- Technological/innovation improvements
Of entrepreneurs who expect to hire outside their headquarters country in 2012, 74% named “entering a new market” as one of the most important factors.
- When hiring abroad, they are seeking growth opportunities, not to arbitrage labor costs or regulatory burdens.
Only 14% named “taking advantage of lower labor costs” and just 8% named “better government regulations, policies, and incentives” as important reasons to hire outside their headquarters country.
- On the other hand, they believe that the public sector in their headquarters country could do better.
Significant negative factors affecting 2012 hiring plans included government policies in areas such as education and fiscal balance, followed by the regulatory climate.
- Entrepreneurs are concerned about the overall economic direction of their country.
Entrepreneurs in the US and Ireland express the most concern about their country’s overall economy. But by region, it is interesting to note that Europe and Asia-Pacific share a “medium” confidence level.
- Entrepreneurs on the whole are not satisfied with the quality of their local workforce.
In choosing their top three positive and negative factors affecting their 2012 hiring plans, only 9% included the quality of the local workforce as a positive, whereas 13% indicated the local workforce as a negative factor.
Many of our respondents said they have taken steps to address the quality of their labor pools: one in four of these entrepreneurs has created, endowed or served as the primary sponsor of an educational program.
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