While other businesses struggle to create jobs, entrepreneur-led companies expanded their workforce by 16% in 2011, according to business consultancy, Ernst & Young.
The new Global job hot spots: Help wanted, survey of 400 of the world’s leading entrepreneurs by Ernst & Young has found more than two thirds of them expected to hire in 2012.
The majority of the positions require university degrees or substantial experience and are FT positions.
Nearly all of those entrepreneurs surveyed had increased their headcount last year, often by a substantial amount. On average the entrepreneurs surveyed from the Americas grew their headcount in 2011 by 18%. In Asia-Pacific and Europe the increases were 16% and 12% respectively.
“With historically high levels of unemployment, especially among young people, there is a pressing need for economic growth. At this time the importance of entrepreneurs, the companies they lead and the jobs they create is even more critical,” says Jim Turley, Chairman and CEO of Ernst & Young.
When entrepreneurs were asked what kind of jobs they created (administrative, entry-level with and without university degrees, or experienced), 81% said they created roles for ‘experienced personnel’, while only 35% said to have recruited at ‘entry level with a degree’ and 29% recruited ‘entry level with no degree’.
This trend was most obvious in the USA where 92% of the respondents said they hired at an experience level, followed by Australia (81%) Canada (80%) UK (78%) and Ireland (76%).
Sixty-eight percent of the entrepreneurs surveyed anticipate increasing their workforce in the country where their company is headquartered in 2012.
When asked for more details about their recruitment strategies, entrepreneurs said ‘growth in their product and service markets’ was the main reason for expanding their headcount followed by ‘technological and innovation improvements’.
Forty-four percent also expect to increase their workforce outside of their headquarters country.
When asked to name the countries where they anticipated creating the most jobs the USA, China, the UK and India were the most popular destinations.
When asked why they were recruiting outside their national market in 2012, 74% of entrepreneurs confirmed this was in order to help them enter new markets. Only 14% said they were recruiting internationally to ‘take advantage of lower labor costs’ and only 8% said they wanted to benefit from ‘better government incentives’ in other countries.
When the entrepreneurs were asked which factors in their domestic market could potentially impact their 2012 hiring plans, government policies (23%) and a negative regulatory climate (16%) came on top.
“With just a few regulatory changes could greatly improve entrepreneurs’ access to funding, which would make even more of an impact on job and wealth creation,” says Maria Pinelli, Global Vice-Chair for Strategic Growth Markets at Ernst & Young.
“Governments worldwide, led by the G20, should really appreciate entrepreneurs for what they are - an engine for growth."
Updated 7 June 2012