Entrepreneurs to step up job creation

Seventy-six per cent of entrepreneurs plan to increase the size of their workforce in the year ahead, largely driven by growing global demand for goods and services and technological advances, a survey has found.

The EY global job creation survey of nearly 250 World Entrepreneur of the Year finalists and alumni, found entrepreneurs plan to increase the size of their workforce in the year ahead by an average of 19 per cent.

Technology has emerged as a key driver of job creation among entrepreneurs, with over half (51 per cent) agreeing that investments made in technology have changed their workforce, with 8 in 10 of these (81 per cent) saying it’s led them to hire.

The survey shows that this is driven by the increased cost competitiveness technology brings, and by technology and mobile working opening up a greater and more skilled pool of workers, with 55 per cent of entrepreneurs planning to hire from outside of their country – compared to 44 per cent in the previous two years.

Respondents to the survey said the main driver for hiring at home was a desire to make the most of a growing market for goods and services – with 61 per cent of entrepreneurs confident in their home market’s prospects.

“The results of our annual survey relay a consistent message – that entrepreneurs, as key drivers of innovation in the global economy, are far less risk averse when it comes to employing new people than CEOs of larger companies,” EY Entrepreneur of the Year partner Frank O’Keeffe said.

In Ireland alone, EY Entrepreneur of the Year alumni employ 152,250 individuals, generating revenues of €16.6 billion and creating 13,650 new jobs in 2013. The 24 finalists in this year’s competition collectively employ 6000 and generate revenues of €628 million.

The survey also found confidence in the global economy is strong, with 47 per cent of respondents confident, very or extremely confident.

Entrepreneurs in Europe are among the most confident, and most likely to tap into the global workforce, with 65 per cent saying they’ll hire from overseas, compared with 53 per cent in the Americas, 33 per cent in Asia-Pacific and 52 per cent globally.