Entrepreneurs in the Middle East are the most active angel investors across the globe, finds HSBC report
Source: HSBC , Author: Posted by BI-ME staff
Posted: Mon June 18, 2018 12:39 pm

UAE. Middle Eastern entrepreneurs are leading the way when it comes to angel investing, according to HSBC Private Banking Essence of Enterprise report.

Two-thirds of entrepreneurs in the Middle East (66%) are angel investors, funnelling both capital and expertise back to the entrepreneurial community, with the USA (54%) and Asia Pacific (45%) next in line.


The report, which researched the views of over 3,700 successful entrepreneurs across eleven countries globally, also found that differences exist between the generations in how they perceive and approach angel investing.

Over half of younger Middle Eastern entrepreneurs (57%) view angel investing as a way to connect and collaborate with peers, staying up to date with industry progress. In comparison, over half (52%) of an older generation of Middle Eastern entrepreneurs, view angel investing as a way to diversify and grow their investment portfolio.

When it comes to sourcing new investment opportunities, over half (53%) of Middle Eastern entrepreneurs source these through their friends, rather than using a financial advisor (38%). They also perceive their role to be supportive, cultivating business development and leadership skills.

Sobhi Tabbara, HSBC’s Global Market Head of Private Banking, Middle East said: “Middle Eastern entrepreneurs are well and truly at the forefront of angel investing in comparison to their counterparts in the USA and Asia. They not only understand the positive impact it can have on their business activity but also recognise the opportunity it provides them to collaborate and learn from their peers.

“With nearly a quarter Middle Eastern entrepreneurs viewing social impact as their top business priority, it is clear to see that this group of entrepreneurs are also one that want to give back to society, understanding the benefits that doing good can have in helping to grow their business.”

Social impact as a priority
Nearly a quarter (24%) of Middle Eastern entrepreneurs consider social responsibility, being active in the community, or environmental responsibility as their top priority as a business owner, compared to the global average of 21%. 

The research also suggests a strong relationship between an emphasis on social impact and entrepreneurial ambition in the Middle East. Half of Middle Eastern entrepreneurs projecting high growth ambitions state that they started their ventures with the intention of creating positive social impact, compared to 35% of those projecting the lowest growth. This suggests social impact should be seen as an integral part of the recipe of entrepreneurial success in the Middle East, and not separate from it.

Those entrepreneurs who project high growth ambitions are also more likely to have a mentor. In the Middle East (89%) of entrepreneurs have a mentor relationship, viewed as a highly effective tactic for learning and development, in comparison to Europe (59%) where it seems that entrepreneurs are yet to be convinced of the value of mentorship.
 
For further findings of the Essence of Enterprise research, visit: http://hsbcprivatebank.com

Notes

- High Growth (HG) firm is one with growth of more than 20% CAGR
- Lower Growth (LG) firm is one with 10% and less CAGR
- CAGR - Compound annual growth rate is calculated as self-reported current annual turnover compared with target turnover in the next 5 years.

Photo: For illustration purpose only (File photo_ 

About the research:
The research was conducted by Scorpio Partnership between December 2017 – January 2018. There were 3,725 respondents all of whom a) were major shareholders and active decision-makers in privately owned businesses and b) had an average wealth of USD 2.52 million. The research covered mainland China, Hong Kong, Singapore, UK, Germany, France, US, Switzerland, Australia, the United Arab Emirates and Saudi Arabia.

About HSBC Private Banking
As part of the HSBC Group, one of the world’s largest banking and financial services
organisations, HSBC Private Banking seeks to be the leading international private bank for business owners and their families. It provides clients with wealth, business and family succession solutions in the largest and fastest growing markets around the world. HSBC Private Bank is the marketing name for the private banking business conducted by the principal private banking subsidiaries of the HSBC Group. For more information, visit www.hsbcprivatebank.com

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

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