Optimism high amongst African business students

The study, conducted by the Association of Business Executives, surveyed 23,410 of their students who showed that the world's next generation of businesspeople are confident, co-operative and quality-focussed. It also found that a majority of business students around the world are more positive about their national economy than they were this time last year, though fewer than 4% think that the world financial crisis is over.

The report into the attitudes of business students around the world shows a drive for quality and co-operation in response to the current economic climate. It shows that most business students around the world are confident their banks will help their businesses, currently prefer international co-operation to international competition, prioritise delivering quality services and products over delivering the lowest price, want an increase in international trade regulation and of all major currencies, prefer to trade in the dollar.

Dollar rules

62.2% of respondents believe that banks will help them with their business. Despite the devastating global consequences of the banking crisis, most business students worldwide are confident that their banks will be willing and able to support their businesses. Jonathan Swindell, head of business development and publishing for the Association of Business Executives said, "This optimism in banks suggests a confidence in the drive for regulatory and structural changes in the banking sector in response to the 2007-2008 banking crisis and, perhaps, a confidence that banks will see these students' businesses as a secure investment."

Out of the world's leading currencies, 10.2% business students want to trade in the Euro. Most business students would prefer to trade in the US dollar, and 30.7% of those asked favour the British Pound and 2.5% want to trade in the Chinese Yuan Renminbi, a currency which only opened up to international markets in 2009.

Swindell said, "The report shows confidence in the current stability of the dollar. Support for the British Pound by nearly a third of respondents might be due to that currency being seen as protected against the volatility of the Euro, despite having been one of the worst performing currencies of all the G10 countries. The report shows that the Euro has little support at the moment, almost certainly owing to the Eurozone's current lack of geopolitical and financial stability."

Cooperation critical

91.6% of business students think that to improve the economy in the current climate, international co-operation is more important than international competition. Just 8% of business students think more international competition will deliver prosperity.

"In a period of economic growth, competition in business is seen as the main driver of performance, innovation and efficiency. However, in a largely stagnant economy, business students believe that it's beneficial for businesses and national economies around the world to work together, working in the collective interest, not self-interest."

48.5% of business students favour more international trade regulation. Only 24% want less regulation. "After the devastating irresponsibility of some of the world's biggest financial institutions in the build-up to the economic downturn, business students want more stability, security, protection and diminished exposure to risk. This is indicated by the 76% of business students who say they either are satisfied with current levels of trade regulation or want more."

10.6% reported that, in their experience of business, sufficient people have a business education. "Two thirds of the world's business students feel that too few people have a business education. A barrier to effective trade is the lack of mutual understanding of business practice. A business community that has a business education can make faster and more informed decisions. Qualifications such as the Association's diplomas in business management, financial management and business start-up and entrepreneurship, enable businesspeople to run successful enterprises in a fast-moving global business world."

Quality first

50.6% believe that the best business approach in this economy is to focus on being qualitatively superior to competitors. Despite popular consensus that cheaper is better in a downturn, only 13% of business students worldwide think that being cheaper than competitors is the best strategy for success in the current economic climate. 36.6% believe it is best to focus on offering mid-range products and services in terms of quality and price compared to rival businesses. Although much of the world looks to emerging economies for low priced goods and services, the results of the research shows recognition amongst business students in these markets of the importance of delivering quality.

Barriers to business

The biggest barriers to business success as perceived by the world's business students are considered to be, in order; 'corruption, crime and theft' (24%), 'access to finance' (23%), 'inflation' (12%) and 'lack of education, skills and training' (9%). This shows business students are predominately concerned with things outside of their control. Just four% were concerned with 'competition', suggesting they are confident in their own abilities and businesses but are concerned with government-controlled issues, such as inflation, education and bureaucracy.

"This report demonstrates that whilst business students around the world are optimistic about their business future, they want a change in business practice. The overwhelming majority believe that the future of global capitalism is brighter in an environment of economic co-operation, and think that international collaboration is far preferable in the current economic climate than competition.

"Business students also want to see improvement in international trade regulations. They understand that as economies begin to move past the global financial crisis, an increasingly globalised trade environment can benefit from regulatory structures and safety nets that provide and protect sustainable growth. This study shows that we have an enthusiastic and diligent upcoming generation of business people. They see a better way of doing business."

African results

54% of those in Africa believe it is more important to deliver quality rather than cheap products and services. Business students in Asia were split between wanting to offer mid-range products and services and those of better quality, at 42% and 43% respectively. The worldwide average was 50%.

The study also found that 65% of African business students are positive that their bank will help them in their business, against a worldwide average of 62%.

However, 'access to finance' is the greatest barrier to business success in Africa, with 34% thinking this was the greatest barrier, compared with 23% worldwide.

"The results from students in Africa may be surprising to some. Developed economies usually look to developing economies to deliver products at a cheaper price. The results show a high level of optimism, ambition and aspiration in our African business students and suggest a realisation that merely competing on cost is unsustainable in both the short and long term," concludes Swindell.

For more information, go to www.abeuk.com/content/docs/ABE_Global_Business_Survey_Mar13.pdf