Entrepreneurs' Organisation (EO) carried out a global survey of entrepreneurs and business owners in June 2012 and netted a sample of more than 2200 global entrepreneurs with an average of US$18.3 million in annual business revenue and 192 employees.
Research indicators included performance-related metrics such as jobs, profits and debt loads. Other segments included business climate issues such as access to capital, predictions on the economy and how willing an entrepreneur is to start a new business.
The EO Cape Town Chapter has nearly 60 members representing just about every industry so the latest results from the Global Entrepreneur Indicator research project are informative. There are positive trends in hiring and business performance and Cape Town businesses were no exception.
EO Cape Town findings
- Jobs: 71% of Cape Town businesses increased the number of full-time employees and 71% expect to increase that number further in the next six months.
- Revenue and profit: Cape Town businesses performed 12% higher than global counterparts, with 79% of businesses expected to increase profits in the coming six months. Similar numbers held true for revenues as well.
Jason Jacobs, the lead researcher on the EO Global Entrepreneur Indicator initiative, said, "We are seeing some very positive signs from the world's entrepreneurial community. Hiring, revenues and profitability are all on the rise and there seems to be a general optimism about the business climate. Compared to the pessimism we observed in the survey six months ago, the trend seems to be headed in the right direction. Considering the entrepreneurial sector's place as the driver of growth and innovation, any momentum in the right direction is welcome."
Locally, Sam Paddock communication chair for EO Cape Town and owner of Get Smarter, added, "It's encouraging to see local entrepreneurial organisations performing significantly better than their global counterparts. There is some magic to the Cape Town entrepreneurial scene and I expect that this trend of strong business performance will continue."