The 4th edition of BNP Paribas Wealth Management’s Global Entrepreneur Report has demonstrated an increased commitment from Elite Entrepreneurs to generate positive impact.
The 2018 Global Entrepreneur Report has revealed that 39% of Elite Entrepreneur respondents now consider ‘positive impact’ to be core to how they assess business performance, compared to 10% of respondents two years ago. This significant increase demonstrates a shift in the mindset of entrepreneurs, across all regions.
Over the past 12 months, the concept of positive impact, which consists in ensuring that their business, investments and personal practices make the world better, has moved up the agenda for entrepreneurs. The report which polled over 2,700 multimillionaire entrepreneurs in 22 countries, handling a total wealth of USD 36 billion, highlighted that 55% have declared they committed a proportion of their wealth to achieving socially responsible outcomes, whilst 80% believe that entrepreneurship is the best way to generate a global or local impact in particular regarding the protection of the environment.
Furthermore, the report found that Elite Entrepreneurs anticipate significant increases in their future use of investment funds (34%), start-up financing (34%), private equity (32%), equity funding (32%) and impact investing (29%).
The Global Entrepreneur Survey also dealt with the five global profiles of Impact Entrepreneurs: ultrapreneurs, serialpreneurs, milennipreneurs, women entrepreneurs and boomerpreneurs. Regarding the first group, 67% of ultrapreneurs- an entrepreneur with a net investable wealth in excess of USD25 million- described themselves as responsible investors, with environmental and social business investments being their most frequently used vehicles. For their part, serialpreneurs- who own or have established four or more operating companies- were found to be more focussed on using their wealth strategically to support other high-potential businesses, whilst 46% of milennipreneurs- an entrepreneur aged 35 or under- said they define their business success in terms of social impact, compared to 39% of all entrepreneurs.
Regarding women entrepreneurs, this group was found to continue to outperform their male peers with a higher average net worth and greater motivation than their male counterparts to hold ESG (Environmental, social & corporate governance) investments to ensure a positive impact (37% vs 33% for male). Finally, 45% of boomerpreneurs- Baby Boomer aged 55 or over- have an exposure to social and environmental investments with equity funds and environmental investments as favoured routes.
