EY ROMANIA

  |  10.08.2016

Disruption at Work or How Entrepreneurs Are Driving Job Growth

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Size plays a role
Entrepreneurs who reported revenues of more than US$1b in the past year – 6% of the wider sample – were more global in their workforce growth plans than anyone else. More than one-third (35%) of their total workforce growth will be in overseas markets, compared with 29% across the wider sample.

 

Three countries – China, the US and the UK – are home to 64% of respondents in the US$1b-plus group, and one-third come from just two sectors: manufacturing and technology. The largest entrepreneurs (by revenue) are most likely to describe themselves as the most disruptive – 3 out of 10 US$1b+ business owners described themselves as changing many or all of the rules of their sector, almost twice the average global figure.

 

This data shows the advantages of size: greater access to resources, a better brand and reputation, and greater ability to expand internationally.


 

Are hiring intentions matched by execution?


The EY Global Job Creation Survey has always focused on hiring intentions, but this year we asked respondents to quantify actual hiring behavior over the past 12 months compared to expectations. Are entrepreneurs overly optimistic about their plans for growth?

 

Quite the reverse, the survey shows. Across the whole sample, 85% of respondents hired as planned or more than they expected. But far more important than sector in determining job growth over the past year is the degree to which entrepreneurs are disrupting and innovating.

 

A significant 42% of the most disruptive entrepreneurs grew their workforce by more than 20% in the past year. This is three times higher than the global average score and 26 times higher than the group of entrepreneurs who indicated that they are not disrupting at all.

 

Entrepreneurs who have created a new product or service in the past 12 months – our innovators – are 4.5 times more likely to have exceeded hiring expectations by at least 20% compared with those who have indicated that they have not innovated.

 

While positive market conditions and government incentives provide a helpful tailwind, growth in share can be attributed to actions taken by innovative, disruptive entrepreneurs to access new markets. These entrepreneurs bring new business models that are superior to those of competitors, as well as new products and services – all enabled by securing the right funding. Entrepreneurs are the architects of their growth and show an ability to grasp opportunities that the whole economy can learn from.

 

 

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