Young entrepreneurs remain optimistic despite the global recession

The global economic downturn may have caused economic upheaval and shaken businesses around the world but confidence among young entrepreneurs remains high, according to a new survey by Shell LiveWIRE International, the leading international network to inspire and develop enterprise in young people.

The main highlights of the Shell LiveWIRE survey of young entrepreneurs around the world are that:

·         Over one in three said that their business confidence remained unchanged during the depths of the recession.

·         More than six in ten expect their businesses to perform either slightly or significantly better over the next 12 months.

·         Women are even more optimistic than men that their turnover and profits will rise over the next year.

More than one in three respondents said that their business confidence was unaffected during the depths of recession over the past 12 months, and although 22% said they became slightly less confident about their business’ prospects, a further 17% said that they became a lot more confident.

Looking ahead to the next 12 months, over six in ten respondents believe that their businesses will perform slightly or significantly better, with similar numbers forecasting a growth in demand for their products or services (by 62% of respondents), increased turnover (by 62% of respondents), and rising profits (by 58% of respondents).

Given the current economic climate, entrepreneurs see the introduction of new products and services (by 21% of respondents), and the development of new markets at home (by 15% of respondents) as being the two biggest opportunities for their businesses.

However, entrepreneurs are still watchful of the effects of the global recession, and they highlight reduced demand (by 19% of respondents), and late payment (by 16% of respondents) as the two greatest risks facing their businesses during the current economic climate.

Business confidence among male and female entrepreneurs is about the same with just over a third of women (35%) and just under a third of men (32%) saying that their business confidence improved over the past 12 months. Women are, however, even more optimistic than men that their turnover, profits and demand for their products and services will rise over the next 12 months.

Two local entrepreneurs Jamal and Anwar Al Asmi, founders of RealityCG, whose business is thriving during the economic downturn, commented

“New opportunities were born from the economic downturn as our business had to look beyond our cash-cows. In turn we broadened our view of the market by rethinking about who we serve and how we service our clientele to ensure we could make up for any lost ground. This has been good for us as we were forced to get out of the lull of our comfort zone, bringing a new wave of energy and courage to do things a little differently. In retrospect the downturn is really an up-turn ... just that we had to stand on our head to see it. Nothing it seems motivates like necessity.” 

Jamie Murray Wells from the UK runs Glasses Direct, the largest direct-seller of glasses in the world:

“My business is performing well at the moment. We offer eyewear at much lower prices than high street outlets, and ultimately people are looking to save money wherever possible, especially in this a tough economic climate.”

Fábio Lewin from Brazil runs Coco Legal, an agribusiness that produces totally natural coconut water:

“The recession hasn’t affected my business. We’ve made improvements to the product and have taken the quality of it onto another level, which has left our competitors way behind. I am very optimistic for our prospects during the coming year, and I will continue to invest in new machinery to improve our production capacity. It is the year to grow even further!”

Abdullah Al Jufaili, Director, Intilaaqah is not surprised at the survey’s findings, saying: “Entrepreneurs tend to be highly motivated and have immense belief in their business, which gives them the incredible drive to pursue their dreams with great optimism even through the most difficult of times.”

 “Building on its 27 year track record, Shell LiveWIRE is playing a key role in supporting young entrepreneurs around the world through these difficult times, ranging from helping them to develop robust business plans, to providing access to a wealth of advice, information and support from a unique global social network of over 100,000 young entrepreneurs.”