Entrepreneurship key to creating economic value in region, Ernst & Young survey

A majority of the respondents said that the speedy adaptability of the entrepreneurial mindset and scalability of their enterprises can meet the challenges forced on the region by any extraordinary changes in the global economic environment. Further, most entrepreneurs in the region believe that personal energy, dynamism, the quality of human capital within organisations and not the state of the economy are the deciding factors in starting new businesses.

The majority of respondents (61%) founded their companies in a healthier economic time, but overwhelmingly (92%) stated they would have founded their company regardless of the state of the economy. More than half (53%) of entrepreneurs surveyed think the most important contribution they make to the economy is to create jobs.

An overwhelming majority (more than 90%) of entrepreneurs said that meticulous planning is essential to make an idea come alive and that one of the key mistakes budding entrepreneurs make is to not plan well - for people, for cash flows and in general for the business plan.

In times of hardship or crises, a majority (70%) of the entrepreneurs surveyed said that they derived comfort and inspiration from members of their immediate family, from parents or siblings. Others that they drew inspiration from and admire include global personalities such as King Abdul Aziz Al Saud, H.H. Sheikh Mohammed bin Rashid Al Maktoum, Mandela, Lincoln, Gandhi, Warren Buffet, Richard Branson, Jack Welsh, Vladimir Putin, Walt Disney, and George Lucas.

Ahmed Al Aiban, Chairman, Ernst & Young Middle East, said:

"The age old question of whether entrepreneurs are born or can be made was left wide open with no clear majority view from the entrepreneurs. Some were categorical that entrepreneurs are born while others stated that the personal and social environments in which they grow up are critical."

"We recognise the contribution that entrepreneurs make to the growth and development of the regional economy and most of all to withstand the challenges in a changing economic environment. They are characterised by hard work and persistence in the face of adversity and they posses a never say die spirit that is essential to dealing with crises," added Fouad Alaeddin, Managing Partner, Ernst & Young Middle East.

"This survey illustrates the contribution entrepreneurs make by creating jobs, improving local communities and bolstering the economy. In fact, nearly three-quarters of entrepreneurs we surveyed believe they will innovate and find opportunities in the current economic situation which most believe will turn around in the long term," he added.

The Ernst & Young survey explores the attitudes of entrepreneurs toward top-of-mind issues, including the state of the economy and the best ways to encourage regional economic development. The Entrepreneur Of The Year program is now in its 22nd year globally and is in its second year in the Middle East, and its average winners have $350m or more in yearly revenues, 20% annual growth, and over 1,000 employees.

In the Middle East this year, the sole broadcast sponsor for the program is Al Arabiya TV, the sole print media sponsor is Al-Iktissad Wal-Aamal, and the sole online sponsor is Zawya.com.