Investing like an entrepreneur: 7 lessons from the Global Entrepreneur Report 2020
Between low interest rates and volatility in the equity market, the financial environment is...
For the third edition of its “BNP Paribas Elite Entrepreneurs” report, BNP Paribas Wealth Management surveyed 2,650 successful entrepreneurs in 21 countries. What path did they take to success? What are their priorities and objectives? Discover these “Elite Entrepreneurs,” broken down into five profiles.
The "2017 BNP Paribas Entrepreneur" report, produced by BNP Paribas Wealth Management in partnership with Scorpio Partnership, is one of the largest international surveys regarding entrepreneurs: the third edition polled almost 2,650 entrepreneurs in 21 countries. Its goal is to sketch a profile of the “Elite entrepreneur” in 2017. Elite entrepreneurs are defined as those holding a net worth of at least $15 million (and whose primary business generates an annual revenue of $8.5 million). It also aims to understand how these entrepreneurs have created their success!
Elite Entrepreneurs may not be omnipresent, but with a combined net worth of $40 billion, they are heavyweights in global business.
“ In 2017, Elite Entrepreneurs will contribute widely to the global economy. Even though they earn 50-65% of their revenue in their domestic market, their business approaches are becoming more international ”
Co-CEO of BNP Paribas Wealth Management
If we go by the numbers, the “typical” entrepreneur is male (65%), between 36 and 54 years old (45%), European (47%) and has started an average of 3.5 businesses. They have also benefited from a “family history in entrepreneurship” (71%) and focus on 3 key sectors: IT, web/mobile/digital and manufacturing.
These numbers go a long way in confirming stereotypes. But watch out: behind these figures lie several contrasting elements. To refine the conception of “Elite entrepreneurs,” the report broke them out into five very different categories. Each “family” has its own attitude, priorities and objectives.
Ultrapreneurs (with net worth over $25 million), 77% of whom view CSR (Corporate Social Responsibility) as an “important or extremely important” aspect of their businesses and investments. They notably devote 9% of their assets to socially responsible investments. Not only are they mindful of their impact on society, Ultrapreneurs are also optimistic: 71% expect profits to rise in the next 12 months.
Take the 7-question quiz developed by the New York Times and BNP Paribas Wealth Management to find out if you have the mindset of a successful entrepreneur!
Starting a business is an inherently risky activity. Yet Elite Entrepreneurs show an extraordinary level of confidence, both in themselves and their projects. They accept risk as long as it is managed—Serialpreneurs even view risk as a necessary condition for success—so they value intelligence (12%), a bit of luck (11%) and technical expertise (10%).
As entrepreneurs, they see themselves as good judges and managers of risk, so they can remain calm! Less than a quarter of Elite Entrepreneurs say their business concerns keep them up at night.
In managing their personal wealth, these successful entrepreneurs are just as thoughtful and prudent. Far from investing their fortunes in their businesses, as some believe, they are resolutely focused on diversification – in Private Equity, stocks, bonds and real estate.
Their businesses represent just 16% of their wealth. Cash and property each account for 12% of their net worth, with the rest spread between stocks, bonds and socially responsible investments. They also diversify their investments geographically – in the USA, China, Germany and Great Britain. That strategy illustrates a shared trait among these Elite Entrepreneurs: using good judgement and spreading risk to limit and control it!