Entrepreneurs across the world share one common trait: they are optimistic and confident about growing their wealth in the future. Indian entrepreneurs lead globally in optimism, with 98 per cent expressing confidence in their ability to grow their wealth, according to HSBC’s Global Entrepreneurial Wealth Report 2024. The study surveyed 1,800 entrepreneurs across 10 global markets for quantitative insights and included qualitative research in six markets. The report reveals that over 90 per cent of entrepreneurs worldwide are optimistic about their financial future, but Indian entrepreneurs stand out. Interestingly, affluent Indian entrepreneurs prioritise investments in real estate and indulge in luxury goods and experiences more than their global peers.
Sandeep Batra, Head of Wealth and Personal Banking, HSBC India, says, “The surge in the Indian stock market, strong macroeconomic fundamentals, and the rise in the number of India’s ultra-high net worth individuals are enabling the wealthy Indian business owners to remain optimistic and turn into big spenders. Besides focusing on investment and spending, Indian entrepreneurs value connections, networks, and mentorship and seek to make a positive contribution to society.”
Here are the key points from the report:
Spending Preferences:
Rich entrepreneurs in India like to indulge and ‘appreciate a luxurious lifestyle’
Around 56 per cent of Indian entrepreneurs like to spend on luxury goods compared to the 40 per cent global average, and 44 per cent prefer spending on luxury experiences compared to the 35 per cent global average
61 per cent of Indian business owners invest their personal wealth in real estate compared to 51 per cent globally
Art and collectables come lower on the preference ladder as only 14 per cent like spending money on such items compared to 25 per cent globally
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Top Motivation:
The top two motivations for entrepreneurs globally are ‘Building personal wealth’ and ‘To ensure financial freedom for myself and/or my family’
Investment Choices:
Indian entrepreneurs rank in the top 10 markets for using their personal funds for investments. Over 80 per cent of Indian business owners allocate their money to investments. Real estate, stocks, and bonds are their preferred choices
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Legacy Planning:
Globally, 78 per cent of entrepreneurs want to ‘keep the business in the family and preserve its legacy’. Indians seem to make it a point to maintain their business legacy, with 88 per cent of Indian entrepreneurs wanting this, compared to only 72 per cent in the US, 82 per cent in the UK, and 68 per cent in Taiwan
Nine out of ten entrepreneurs trust the next generation to carry on their values and culture. Around 47 per cent have not yet devised a succession plan for their business and 48 per cent are concerned about finding a suitable successor
Entrepreneurs' Main Concerns:
Their main concerns are inflation, taxation, corruption, and unemployment, despite 75 per cent of them feeling supported by the government
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Geographical Preferences:
The study reveals that 75 per cent of Indian entrepreneurs operate within the country, and 32 per cent even have no plan to do business overseas in the next year
Whereas 61 per cent plan to make a personal move to other countries (Singapore, UAE, and the US are popular destinations) in 12 months, and 64 per cent think of moving personal wealth to other countries (Singapore and UAE are the most popular) in the next 12 months.
Exit Plan:
Around 58 per cent of Indian Entrepreneurs have no plan at present about exiting their business compared to the global average of 49 per cent.