A survey of nearly 200 leading entrepreneurs across Europe, the Middle East and Africa has revealed that entrepreneurs remained relatively optimistic about business opportunities, despite the global recession.

The study carried out by audit and business advisory firm Ernst & Young indicated that leading entrepreneurs were looking beyond the immediate crisis toward future opportunities.

Ernst & Young director for strategic growth markets Zanele Xaba explained that entrepreneurs see growth and future opportunities as more important than battening down the hatches and protecting their existing business.

"In the course of the study, several entrepreneurs have commented that the minute your business is not focused on growth, you are already losing the battle and winding down."

Ernst & Young stated that over 80% of the entrepreneurs believed that there were opportunities to be exploited in the next 12 months. In addition, only 16% said that they were focused on surviving the next 12 months.

When questioned about their area of focus in the next 12 months, 48% planned to expand into new geographic markets and 47% planned to diversify their business or develop new product lines. Two-thirds were increasing their focus on new market opportunities.

"While focusing on their current performance is still important to entrepreneurs, it is in their culture to constantly look for new opportunities and new markets. This might mean a new sector, a fresh idea or a different geography. Or all three," stated Xaba.

CASH NOT AN ISSUE FOR SOME

A significant number (36%) of entrepreneurs said that availability of cash was not an issue per se for them. However a substantial proportion (41%) said that they were taking other steps to maintain liquidity; including a stronger focus on working capital, increasing efficiency, securing equity investment from strategic partners and deferring capital expenditure.

"Those entrepreneurs which can capitalise upon the momentum of these turbulent times, using it to make the required business improvements, with the respective focus on efficiency and performance, will emerge stronger than ever. The statistics show that entrepreneurial businesses are likelier to do just that," Xaba stated.

Over one-half of the surveyed entrepreneurs indicated that they planned to increase investment in areas such as marketing, staff training, information technology (IT) infrastructure, doing more business on line, sales and prospecting staff, research and development, geographic expansion, innovation and product development as well as additional offices and new facilities.

"Investment is key to growing the economy. It will also be critical to ensuring that business stay ahead of their competitors and ahead of the market. This may explain why several of the strongest businesses today were grown in turbulent times: entrepreneurs know best how to capitalise on opportunities," concluded Xaba.