Contrary to conventional wisdom, lower labor costs and favorable regulatory climate were not big influencers.

When it came to the positive factors that were affecting 2012 hiring plans in their headquarters country, entrepreneurs told us two main things were having an impact:

1. An increase in the market for their products and services
2. A desire to improve their technology or innovation

The two main negative factors influencing hiring plans were government policies and the regulatory climate. Clearly, there is room for governments to take action to encourage job growth at entrepreneurial companies, or perhaps stay out of their way.

When asked to name the two reasons they were planning to hire outside their headquarters country in 2012, the growth opportunity attached to entering a new market was overwhelmingly the most important, cited by 74% of respondents.

Just 14% cited lower labor costs and just 8% chose a more favorable regulatory climate, contradicting the conventional wisdom that these are the most important reasons why businesses create jobs in new jurisdictions.

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