Increased global confidence boosts entrepreneurs' hiring plans

• 76% of entrepreneurs plan to hire this year, compared with 31% of CEOs running large corporates
• Technology is driving global job creation and opening up talent pool
• Entrepreneurs in EMEIA most confident and likely to hire from abroad

LONDON and MONACO, June 4, 2014 /PRNewswire/ -- Seventy-six per cent of the world's top entrepreneurs plan to increase the size of their workforce in the year ahead by an average of 19%, largely driven by growing global demand for goods and services and technological advances. This is according to the third EY Global Job Creation Survey of nearly 250 EY World Entrepreneur of the Year (WEOY) finalists since 2000, released today to coincide with the WEOY Awards 2014, taking place this week in Monaco.

Entrepreneurs driving global job creation

When compared with CEO's of large corporates, entrepreneurs are taking a more active role in global job creation according to a recent EY study, the EY Capital confidence barometer [see notes]. In this, only 31% of CEO's surveyed said they intend to hire in the next year, with the analysis suggesting this reticence is driven by geopolitical concerns and cost cutting pressure from activist shareholders.

In contrast, respondents to the Global Job Creation Survey say the main driver for hiring at home (selected by 88%) is a desire to make the most of a growing market for goods and services – with 61% of entrepreneurs confident in their home market's prospects. The second biggest driver of employment is the improvements that technology and innovation have brought to companies.

Maria Pinelli, EY's Global Vice Chair, Strategic Growth Markets says: "The results of our annual survey relay a consistent message – that entrepreneurs, as key drivers of innovation in the global economy, are job creators and are far less risk averse when it comes to employing new people than CEOs of larger companies."

Technology creating jobs and opening up global talent pool

Technology has emerged as a key driver of job creation among entrepreneurs, with over half (51%) agreeing that investments made in technology have changed their workforce, with 8 in 10 of these (81%) saying it's led them to hire. The survey shows that this is driven by the increased cost competitiveness technology brings (53%), and by technology and mobile working opening up a greater and more skilled pool of workers, with 55% of entrepreneurs planning to hire from outside of their country – compared to 44% in the previous two years.

Maria continues: "Far from technology reducing jobs, there is every indication it is creating employment opportunities within entrepreneurial companies, as entrepreneurs take advantage of strong economic fundamentals and increased efficiency to invest in their businesses.

"Entrepreneurs are increasingly global in their outlook and are exploiting the opportunities that technology brings them to tap the global talent pool and address skills shortages in their home market this way. This is in large part due to technology enabling mobile working, something that, according to our survey, women entrepreneurs are especially likely to see as a significant trend."

Entry level jobs on the rise

When looking at who was hired by entrepreneurs in 2013, there has been a shift towards hiring at the entry level. Fewer "experienced non-management" were hired in 2013 than in 2011 or 2012, while jobs at the entry level, especially those requiring a degree or advanced degrees were up on the last two years. Entry level roles that don't require a degree held steady.

"Entrepreneurs have a key role to play in driving global economic growth and job creation thanks to their dynamism, nimbleness and ability to spot opportunities for growth. This survey shows they're living up to expectations. Not only do 7 in 10 entrepreneurs plan to hire, but many say they will do so abroad in order to grow their markets, showing the global mindset of an entrepreneur. Encouragingly, many are seeking entry level employees, something which bodes well for the world's youth, both skilled and unskilled," adds Maria.

Entrepreneurs in EMEIA most confident about global economic prospects

Confidence in the global economy is strong, with 47% confident, very or extremely confident and 46% somewhat confident. Entrepreneurs in EMEIA are the most confident about the global economy (with 63% confident, very or extremely confident), and are also the most likely to tap into the global workforce, with 65% saying they'll hire from overseas, compared with 53% in the Americas, 33% in Asia-Pacific and 52% globally. Meanwhile, Entrepreneurs in Asia-Pacific are keenest to hire in order to expand into overseas markets (58%), followed by EMEIA (54%) and the US (46%).

"As the global economic recovery takes hold, entrepreneurs from all regions are looking to hire. In EMEIA there appears a real appetite to tap into skills available overseas, perhaps in response to skills shortages at home. This and the ease of hiring globally is something for governments in the region to consider if they are to stay ahead of the global race for talent," concludes Maria.

The full EY Global job creation report is available at www.ey.com/jobcreation