Growth is top priority for emerging market entrepreneurs
WEALTHY business owners in Asia, Africa and the Middle East are most focused on growing their companies, according to a Standard Chartered Private Bank and Campden Wealth Research report released on Monday.
With building a successful business the dominant goal – whether by enlarging market share, increasing production capacity, or international expansion – personal wealth growth, formal planning, and wealth transfer structures take a back seat when it comes to these business’ wealth management needs.
In order to assess how private banks can adapt to serve emerging market entrepreneurs better, researchers surveyed stakeholders in family businesses with a 2012 turnover and family net worth in excess of US$100 million, as well as stakeholders in non-family businesses with a 2012 turnover and individual net worth in excess of US$25 million.
When asked about their main business goal in five- and 10-year horizons, 79 per cent and 58 per cent of respondents picked growth as the top priority respectively. This is in contrast to professionalisation (14 per cent and 23 per cent), transfer of wealth (5 per cent and 9 per cent), and exit/liquidity event (2 per cent and 10 per cent).
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