Swiss private bank UBS has just published its first “Global Entrepreneur Report,” highlighting entrepreneurs’ expectations on future investment, hiring plans and artificial intelligence, as well as key concerns and sentiment about their respective industry outlook. 

Entrepreneurs’ globally are upbeat about prospects for their industries over the coming 12 months, with 61 per cent saying that they are very or somewhat optimistic, according to the latest UBS Global Entrepreneur Report.

Globally, just under a fifth are very or somewhat pessimistic. Entrepreneurs surveyed in the Americas (71 per cent) stand out as being the most optimistic about the outlook for their industry over the next 12 months, the survey reveals. This is followed by Asia Pacific with 59 per cent, Europe at 52 per cent and Switzerland at 50 per cent.

From a sector perspective, confidence is high among technology/healthcare and industrials entrepreneurs, but less so for those in consumer discretionary/staples. 

These surveys are a way for banks such as UBS to showcase their connections to business owners – important clients – and the kind of concerns that these wealth creators have.

Artificial intelligence
When it comes to AI, entrepreneurs see a lot of potential. Almost two thirds (62 per cent) of them consider AI as the technology offering with the greatest commercial opportunity for their industries. Expectations are especially high in the technology/healthcare sectors, but lower among industrial entrepreneurs. In five years, more than two thirds (67 per cent) expect the technology to lead to improved productivity for a typical company in their industry. 

The report is based on a survey of 156 UBS entrepreneur clients and network members across a range of economic sectors, with their business accounting for about $19.1 billion in combined annual revenue, equating to an average of $123 million each. Entrepreneurs from the Americas (US and Latin America), Europe, Switzerland and Asia-Pacific were invited to participate in the survey using an online methodology which was conducted from 26 September to 30 November 2024.

Investment
The survey shows that entrepreneurs globally believe that businesses will increasingly ramp up investment. Fifty-one per cent think that typical companies in their industries plan slight or significant increases in investment over 12 months. And looking ahead five years, that number rises to 86 per cent, according to the survey. 

Globally, entrepreneurs mainly anticipate investment in people and acquisitions. Fifty-four per cent believe that the typical company in their industry plans to invest in personnel over 12 months – not just hiring, but also providing incentives or training – while 53 per cent expect an upturn in strategic acquisitions or partnerships. Almost half of entrepreneurs surveyed anticipate that a typical company in their industry will invest in IT spending and/or digital transformation, with 45 per cent expecting investment in AI infrastructure, applications and/or models.

Expectations for investment in personnel are greatest in the Americas, while strategic acquisitions and partnerships rank highest in Europe, according to the report. In Asia-Pacific, investment in strategic acquisitions and partnerships, along with investment in AI infrastructure, applications and/or models, rank ahead of personnel.

The report also shows that more than half of entrepreneurs surveyed think that businesses in their sectors are having trouble hiring employees, while close to half say that remuneration/incentives have had to be increased to retain employees. Hiring problems appear greater in the Americas and Europe than Asia-Pacific.

When it comes to risks over 12 months, entrepreneurs see political instability and/or uncertainty as the biggest concerns for their industries (53 per cent), followed by higher taxes (42 per cent) and major geopolitical conflict(s) (41 per cent). They also cited concerns about changes in industry regulations and/or compliance requirements, while 35 per cent are worried about cybersecurity threats, a particularly common concern in the technology/healthcare sectors. In the future, entrepreneurs aspire to balance personal interests with business and investing, the survey reveals.