Millennial Entrepreneurs Place Greater Value on Building Influence to Benefit Their Community
June 19 2017 - 3:57PM
Business Wire
- Entrepreneurs in their 20s prioritize
influence and impact on local community compared with older
generations
- One in four millennial entrepreneurs
sets up a business to make a difference and get recognition for
their impact
- Millennials dedicate more time to
volunteering than previous generations
The entrepreneurial spirit of global millennials is more likely
to be driven by the desire to increase their influence and have a
positive impact on others than their parents’ generation, according
to a new report from HSBC Private Bank. The bank’s second Essence
of Enterprise report, launched today, researched the views of over
4,000 entrepreneurs globally to understand the motivations behind
setting up their own businesses. The study found that more than a
quarter (26%) of entrepreneurs in their 20s set up their business
with a view to making a name for themselves, compared to 17% of
over 50s.
Millennials are not simply driven by the desire for prestige,
however, as respondents outlined their desire to use their
influence to have a direct impact on their community. Nearly a
quarter of those in their 20s say having a positive impact on the
community was an important goal compared with one in ten (13%)
entrepreneurs aged 50+. In the UK, young entrepreneurs are more
than twice as likely to say having this positive influence was
important compared with older entrepreneurs (15% vs 6%). This
distinction between generations is most marked in the U.S. where
the difference moves 12 percentage points (29% vs 17%).
While the global findings suggest shifting priorities for
younger generations, those in Asia-Pacific demonstrate an approach
which reflects financial considerations as part of their
entrepreneurial mix. Nearly half (45%) of millennial entrepreneurs
in this region went into business with the goal of increasing their
personal wealth, compared to 40% in the U.S. and 29% in Europe.
Entrepreneurial goals
Entrepreneurs intheir
20s
Entrepreneursover 50
Difference
(in percentagepoints)
To become more influential 23% 13% 10% To have
a positive impact on your community 23% 13%
10% To build a name for yourself 26% 17% 9% To
have a positive economic impact 25% 20% 5%
Q: Which of these motivations were important in your decision to
become an entrepreneur? (multiple choice)
The gap between the two global age groups widens when it comes
to environmental and social considerations. Entrepreneurs in their
20s are more likely to put a high amount of effort in tackling
these issues within their business compared with the over 50s (37%
vs 25%). The divide is particularly clear in Mainland China, where
almost half of millennials focus on this area, compared to under a
quarter of over-50s (41% vs 23%). The research also reveals how
millennials spend almost twice as long on average participating in
community activity or volunteering (54 minutes vs 30 minutes on
average per day). China is again the area with the biggest
discrepancy between young and old when it comes to these
activities, as the time difference amounts to over an hour extra a
day (one hour and 18 minutes vs six minutes).
In their quest to build a name for themselves and increase their
influence, the creation of strong support networks is particularly
important for the younger generation. Millennials achieve this
through a greater focus on company strategy and internal staff
management, dedicating half an hour more each day to these tasks
than their older counterparts. This younger group is less likely to
get involved into day-to-day delivery of products and services,
freeing up on average 42 minutes a day by empowering employees to
make important client-facing decisions. By placing greater emphasis
on overall business strategy and managing talent internally, their
network is strengthened.
HSBC Private Banking’s Chief of Staff Stuart Parkinson
said: “Our research shows that, compared with older
generations, millennial entrepreneurs seek influence rather than
autonomy and that social impact is as important to them as personal
wealth. It is important that we understand the challenges faced by
the next generation of entrepreneurs so we can support them as they
create jobs and economic growth, as well as prosperity for
themselves, their families and their communities.”
For further findings of the Essence of Enterprise research,
visit: http://hsbcprivatebank.com/.
About the research
The research was conducted by Scorpio Partnership online in
September 2016. There were a total of 4,038 respondents all of whom
a) were major shareholders and active decision-makers in
privately-owned businesses and b) had a minimum personal wealth of
more than USD250,000. 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 Banking is the marketing
name for the private banking business conducted by the principal
private banking subsidiaries of the HSBC Group.
HSBC Bank USA, National Association (HSBC Bank USA,
N.A.), with total assets of US$200.4bn as of 31 March 2017 (US
GAAP), serves 2.4 million customers through retail banking and
wealth management, commercial banking, private banking, asset
management, and global banking and markets segments. It operates
more than 228 bank branches throughout the United States. There are
144 in New York as well as branches in: California; Connecticut;
Delaware; Washington, D.C.; Florida; Maryland; New Jersey;
Pennsylvania; Virginia; and Washington. HSBC Bank USA, N.A. is the
principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of
HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a Member of
the FDIC.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170619006202/en/
Media:Matt Ward, +1
212-525-1931matthew.m.ward@us.hsbc.comLiz Byrne,
+1 212 525 0616elizabeth.x.byrne@us.hsbc.com
HSBC (NYSE:HSBC)
Historical Stock Chart
From Mar 2024 to Apr 2024
HSBC (NYSE:HSBC)
Historical Stock Chart
From Apr 2023 to Apr 2024