Entrepreneurs creating more jobs despite tough times

Source From (The Sun Daily): http://www.thesundaily.my/news/403625

Published: on 11 Jun 2012
sunbiz@thesundaily.com

KUALA LUMPUR (June 11, 2012): Entrepreneurs are anticipating growth, recruiting experienced workforce and creating new jobs this year despite the uncertain global economy, as revealed by Ernst & Young's (E&Y) "Global job hot spots: Help wanted" survey.

The survey, in which 400 leading entrepreneurs worldwide participated, highlighted that despite tough times, over two-thirds of them expect to hire this year with a majority of positions requiring university degrees or substantial experience.

According to E&Y, entrepreneur-led companies expanded their workforce by 16% last year. This year, survey respondents said growth in their product and service markets was the main reason for expansion.
Forty-four percent also expect to increase their workforce outside of their headquarters country, with the US, China, the UK and India being the most popular destinations.

When asked why they were recruiting outside their national market in 2012, 74% of entrepreneurs confirmed this was in order to help them enter new markets while others said they were recruiting internationally to take advantage of lower labour costs and to benefit from better government incentives.

E&Y's global vice-chair for strategic growth markets Maria Pinelli said: "Whether at home or abroad, in good economic times or bad, entrepreneurs are constantly looking for new opportunities to expand their business and services. Despite an uncertain global economy, entrepreneurs are actively looking to recruit high-qualified and experienced staff."

The survey also found that entrepreneurs are creating new jobs worldwide with nearly all of the respondents having increased their headcount last year.

On average, the entrepreneurs surveyed from the Americas grew their headcount in 2011 by 18%. In Asia-Pacific and Europe, the increases were 16% and 12%, respectively.

E&Y's chairman and CEO Jim Turley said: "With historically high levels of unemployment, especially among young people, there is a pressing need for economic growth. At this time, the importance of entrepreneurs, the companies they lead and the jobs they create are even more critical."

However, entrepreneurs also said several factors could affect their recruitment plans this year, namely government policies and a negative regulatory climate.

"With just a few regulatory changes, it could greatly improve entrepreneurs' access to funding, which would make even more of an impact on job and wealth creation. Governments worldwide, led by the G20, should really appreciate entrepreneurs for what they are — an engine for growth," said Pinelli.