Risk Taking Key to Success as Confidence Rises: Business Owners

Businesses in the U.S. are most likely to believe the start-up and small business community should do the most to support itself rather than relying on the government, banks or other support mechanisms. Having weathered a number of government-related economic crises over the past few years, the business community is open to alternative solutions when it comes to addressing traditional business needs like lending, according to recent survey.

With a renewed focus on risk-taking, American business confidence is at a three-year high, according to the survey. Not only are American businesses more confident about their own prospects than last year (64.65 out of 100, up 4.37 points since 2012), they now believe the domestic economy is improving (52.80, up from 47.86 in 2012), and are more optimistic about the global economy than in previous years (47.80, up from 41.95 in 2012).

Nearly 1 in 2 American business leaders surveyed described themselves as risk takers, with 77 percent saying they did so because they feel they need to take risks in order to succeed. Only 31 percent of American business decision makers described themselves as risk averse. In a global ranking of risk taking this places American businesses in the mid-range. Globally nearly half (47 percent) of business leaders surveyed described themselves as risk takers, while only 32 percent of business decision-makers described themselves as risk averse.

Furthermore, despite the majority (56 percent) of businesses believing that banks need to do more to make money available to businesses, just 43 percent of American businesses agree the government needs to put more pressure on banks to lend compared with 63 percent of all businesses surveyed globally. Rather than looking to government to help with funding their business, many believe alternative sources of funding may hold the answer. Half (50 percent) of American businesses agree that they need to consider alternative sources of funding, but only 36 percent of American businesses feel positive towards peer-to-peer lending and crowd-funding, with only three percent having already used it.

For U.S. businesses, the core business priority is winning new customers (24 percent). However, too much bureaucracy is believed to be the biggest challenge to conducting business in the country. The majority (58 percent) of American businesses argue that cutting bureaucracy would be one of the most important things government could do to help business confidence.

Summary Of Key Global Statistics
– Global confidence at a Business Index record high as businesses’ optimism about own prospects rises 5.5 percent from 2012.
– U.K. businesses are increasingly confident about their own prospects (62.55%, up from 58.46 in 2012). Business confidence in the U.K. is also higher than in all of the Eurozone countries, including France, Portugal, Spain and even Germany.
47% percent of business leaders globally describe themselves as “risk-takers,” with 73% saying risk is necessary to succeed.
In Brazil, business decision makers are more willing to take risk to succeed in business. Over half (56%) of Brazilian respondents describe themselves as risk taking — more than any other market and twice the number who describe themselves as risk averse 24%.
U.K. businesses describe themselves as among the most risk-averse (39% versus 32% globally). Austrians are the least likely to take risks, with nearly half describing themselves as risk averse.
57% percent of small businesses globally agree they need to look to alternative sources of funding, but only 42% feel positive about peer-to-peer funding.
Banks aren’t doing enough to make funding available to small business, according to 69% of business leaders globally.
Governments need to do more to support small businesses, with 63% of businesses globally agreeing they should put greater pressure on banks to lend.

From: Sage

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