The Working World

Entrepreneurs in Emerging Markets See Gloom Lifting

In a report published last month, Endeavor, the nonprofit group that helps entrepreneurs in developing countries, revealed one group’s outlook on the global economy. The organization surveyed 65 of its entrepreneurs, the bulk of them in South America. Companies had revenue between $500,000 and $20 million. Their answers were surprisingly upbeat, and contrasting even with their December responses to the same questions, which were also not as bad as you’d expect. Entrepreneurs around the world, particularly those working with Endeavor, seem to be in fairly good standing.

Key results:

Has the global crisis had any impact on your business to date?

75% said yes

Reasons for impact:

59% – Reduced sales
37% – Reduced access to financing
10% – Reduced input costs

Has the global crisis had any positive impact on your business to date?

45% said yes

Reasons for impact:

48% – Hire better talent
41% – Less competition
28% – More investment opportunities

Do you believe that the global crisis will have any real impact on your business in the next year?

69% said yes

Reasons for impact:

42% – Reduced sales
33% – Reduced access to financing
16% – Reduced input costs

Have you taken measures to protect your business from the crisis?

75% said yes

Reasons for impact:

30% – Alternative/new financing methods
30% – Downsize operations
20% – Hiring freeze
15% – Suspension of growth projects

Growth forecasts for 2009: 38%
Response in December: 31% for 2009
Job growth forecasts for 2009: 29%
Response in December: 12% for 2009

Tags: emerging markets, entrepreneurs, forecasts, global economy