Entrepreneurs – spotting opportunities in adversity
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Stuart Watson |
The business psyche of entrepreneurs makes them innovative and driven — two qualities that mean enterprises in Yorkshire are seizing opportunities regardless of the economic weather. Far from being frozen into inactivity, owner managed companies seem to be using the current conditions to accelerate major strategic decisions. We can only expect more of the same in the near future. While it is important to recognise the seismic nature of recent events, Yorkshire entrepreneurs have the commercial savvy to focus on the road ahead. The future, however, can be different — and this is where true entrepreneurs are concentrating their energies and resources. This view is underscored by a recent survey of nearly 200 leading entrepreneurs across Europe which reveals that they remain relatively optimistic about business opportunities, despite the recession. The study carried out by Ernst & Young strikes some sharp contrasts with a similar survey of major European corporates. Entrepreneurs see growth and future opportunities as more important than battening down the hatches and protecting their existing business. In the course of the study, several entrepreneurs commented that to stop focusing on growth, is to lose the battle. Many of the former Entrepreneur Of The Year finalists that we talked to have had numerous businesses — some that have failed, sometimes more than once. In each case they have picked themselves up and started all over again with characteristic resilience. More than 80% of the entrepreneurs in our survey believe that there are opportunities to be exploited in the next 12 months. Only 16% are focused on survival, compared to over 30% of corporates responding to the same question. When asked about their areas of focus in the next 12 months, 48% of entrepreneurs say they are planning to expand into new geographical markets (compared to just 20% of their corporate cousins) and 47% plan to diversify their business or develop new product lines (compared to just 19% of corporates). In the meantime, two thirds of entrepreneurs have increased their focus on new market opportunities. While concentrating on their current performance is still important to entrepreneurs, it is embedded in their business DNA to constantly look for new opportunities and new markets. This might mean a new sector, a fresh idea or a different geography. Or all three. Entrepreneurs who can take advantage of the momentum of these turbulent times will emerge stronger than ever — and our research shows that entrepreneurial businesses are likelier to do just that. It is an apt truism that fortune favours the bold and twice as many entrepreneurs (37% compared to 15% of corporate senior managers) indicated there had been no decline in investment in their company. Indeed, over half indicated areas where they planned to increase investment, including: marketing; staff training, IT infrastructure, doing more business on line; recruiting sales and prospecting staff; research & development; geographic expansion; innovation and product development; as well as additional offices and new facilities. Investment will be vital to driving our economy. It will also be crucial to ensuring that enterprising businesses stay ahead of their competitors. This may explain why several of our strongest businesses today were born, such as Microsoft and Hewlett-Packard, and raised in previous turbulent times: entrepreneurs know best how to capitalise on opportunities. Eleven Yorkshire business leaders from nine companies have been short-listed as regional finalists in Ernst & Young Entrepreneur Of The Year awards 2009. Ernst & Young’s Entrepreneur Of The Year is the world’s most prestigious business award for entrepreneurs. Established in the 1980s, the awards celebrate people who build and lead successful, growing and dynamic businesses in more than 135 cities in 50 countries. |
