FOCUS: Predictions and priorities from top global (and local) business minds

A new “first-of-its-kind” report has revealed the feelings, priorities and predictions of top entrepreneurs from around the globe… But what’s the story closer to home?

UBS’s Global Entrepreneur Report aims to provides insights into the business environment in which entrepreneurs are operating in. 

The findings are based on a survey of 156 UBS entrepreneur clients across 26 markets, with a combined annual revenue of US$19.1bn. 

The report broke down the data based on region – Americas, Europe, Switzerland and Asia-Pacific. 

Express took a look the report – and compared the findings to what’s happening in the local business community… 

Europe is flying the flag for sustainability 

Businesses around the globe have a significant consideration for ESG or sustainability-related initiatives. 

The report shows Europe leads the way in implementing energy-efficient and carbon-reduction practices, with 72% of businesses adopting that kind of action. 

The region also leads in reducing waste and increasing recycling (59%), as well as adopting sustainable technologies (56%). 

Of the European entrepreneurs surveyed, 22% anticipate further investment in sustainability and ESG related practices. 

George Harper, founder of Jersey sustainability training and accreditation business AsndEco, set up his business after spotting a “gap in the market” for carbon literacy training locally, suggesting that there is a disconnect between Jersey and the UK’s commitment to sustainable practices. 

“Jersey tends to fall behind in many things compared to the UK,” he said. “Sustainability looks at social, economic and environmental positives, but people often forget that implementing sustainable measures and training can have economic benefits for themselves or their company.”  

George said that his focus at AsndEco will be on “generating awareness” of the “why” for those who take his course. 

“Education is at the root of actually implementing sustainable change,” he added. 

Inescapable AI 

The consensus among those surveyed is that AI is the technology with the greatest potential, with 62% agreeing. 

Europe has the smallest number of entrepreneurs who believe AI will lead to improved productivity at 59%. 

Despite this, European entrepreneurs are most expectant of investment in digital transformation (59%) and AI infrastructure (50%) out of all regions. 

On a micro level, AI and digital technology dominated conversations at Digital Jersey’s annual review event last week, with Tony Moretta, Digital Jersey CEO, sharing ambitions of developing Jersey into a “smart island driven by innovation”. 

Digital Jersey, and fellow arms-length organisation Jersey Business have been promoting investment in innovation to boost Jersey’s productivity and grow the economy. 

Jersey Business, which supports local businesses with everything from starting up to productivity boosters, will be advising on and facilitating loans under the £20m Better Business Support Package.

CEO Paul Murphy hopes it will enable businesses to prioritise innovation. 

“Businesses haven’t been able to invest,” he said. “This is one of our largest economic opportunities in a long time.”

This sentiment was echoed to the finance industry at Jersey Finance’s Global Horizons conference last month. 

Chairman Jason Laity said Jersey must be “confident in its ability to innovate, to adopt more fintech, to focus more on the digital asset space and to realise its ambitions as a world-class hub for sustainable finance”. 

Growing and upskilling the workforce 

The report showed that most entrepreneurs surveyed expected personnel – hiring and training staff and incentivisations – to receive investment over the next 12 months. 

The same percentage of European entrepreneurs expecting investment in AI infrastructure (50%) anticipate seeing investment in personnel (50%). 

This contrasts to the 71% of entrepreneurs in the Americas, and 31% in the Asia-Pacific region.

Investment in people had a dedicated section of Jersey Finance’s Global Horizons conference, where it revealed its plans to strengthen the local workforce last month. 

It said: “There is a need to focus closer to home on building a resilient and highly skilled workforce”. 

It cited school outreach and the ‘Future-Fit Workforce’ programmes as ways they are working towards the goal, specifically its Reconnect initiative that aims to “support more local people looking to rejoin or reskill to pursue a career in financial services”. 

Optimism, despite challenges 

Political instability, higher taxes and major geopolitical conflict(s) were the top three worries of all entrepreneurs surveyed, but despite this, they generally remain optimistic about the future. 

Around six in ten (61%) say they are very or somewhat optimistic, and just under a fifth (17%) are very or somewhat pessimistic. 

In Europe, just over half of entrepreneurs surveyed (52%) feel very or somewhat optimistic about the next 12 months, compared to 71% of those in the Americas.

Jersey is not exempt from the challenges affecting businesses worldwide, so is the optimism highlighted in the report felt locally? 

A key challenge facing the island is the make-up of its future workforce – and, in particular, whether talented islanders will return after higher education in the UK or further afield. Many have cited limited career opportunities as a reason.

However, George of AsndEco, feels that it is the right environment for young entrepreneurs.

Despite being part of the generation most susceptible to Jersey’s Bean Drain, he “strongly believes that Jersey has got a wealth of opportunities for people’s careers”. 

“Jersey is an amazing place for a start-up,” he added. “Since founding my company, there has always been someone who can help with every aspect of the business.   

The high street has also been struggling in recent years – with the vacancy rate having risen to just high of 10% the past month, which is the highest on record.

But a huge vote of confidence has come in the form of the expansion of Hettich, a local family jewellers with a 125-year history on Jersey’s high street, which has just opened the doors to its new flagship store.

Managing Director Jeffrey Chinn said his family are “passionate about investing in the high street and enhancing Jerseys retail offering”.  

“We are confident in the future of St Helier as a vibrant destination and Jersey as a beautiful island,” he said. 

Meanwhile, Sustainable Economic Development Minister Kirsten Morel, who recently published a strategy for retail, said last week that efforts to woo big-name UK brands were paying off, with five having shown interest in setting up shop in Jersey.

Regardless of sector, Dr Danica Damljanovic, chief executive and founder of Sentient Machines and panellist at Digital Jersey’s annual review, noted the benefits the island’s size can bring compared to its counterparts. 

“Jersey is able to be agile and try different things and throw them away if they don’t work,” she said.

“I don’t think you have that capability in the UK or other places.”