Entrepreneurs bullish on business prospects

Nearly nine out of 10 Chinese entrepreneurs surveyed are optimistic about their business prospects over the next year, according to a new report released by HSBC Global Private Banking.

The Global Entrepreneurial Wealth Report 2024 found that 89 percent of entrepreneurs in the Chinese mainland have a positive outlook for business development in the coming year, with technological advancements, business opportunities and growing consumer trends cited as the top three reasons underpinning their optimism.

The story of the optimistic entrepreneur comes to the fore in this year's report, said Annabel Spring, CEO of HSBC Global Private Banking.

Spring said the research builds on insights from last year's inaugural study and helps bring to life the traits, characteristics and motivations of today's business owners.

Improving economic fundamentals overall are also a key factor contributing to the upbeat sentiment, according to the survey of over 200 entrepreneurs from the Chinese mainland.

In terms of international expansion plans, Hong Kong (32 percent) and Singapore (18 percent) were identified as the top markets Chinese mainland entrepreneurs aim to prioritize over the next year.

The report also examined business succession planning across different markets globally. Three-quarters of first-generation entrepreneurs in the Chinese mainland have not yet put a succession plan in place, while 74 percent have not begun the process of passing on their wealth and assets.

Finding a suitable successor was cited as the primary concern by 40 percent of Chinese entrepreneurs polled. Meanwhile, nearly 60 percent of non-first generation entrepreneurs felt an obligation to take over their family business — far exceeding the 22 percent global average.

"While facing challenges from global economic uncertainty, entrepreneurs in the Chinese mainland remain optimistic about growth prospects for 2025 and will continue to drive investment and international expansion plans," according to Jackie Mau, head of HSBC Global Private Banking in the Chinese mainland.

However, in terms of long-term wealth planning, Chinese entrepreneurs still need more comprehensive preparation for the future direction of their family businesses and generational succession, he added.

The survey also highlighted Chinese entrepreneurs' strong desire to create a positive societal impact, at 84 percent overall and 91 percent among female entrepreneurs. Six in 10 feel their social value is not limited to the companies they run.

Around 73 percent expressed a willingness to pursue new opportunities after exiting their businesses, rather than viewing it as the end of their careers — exceeding the 60 percent global average.

Conducted for HSBC Global Private Banking by Ipsos, a global leader in market research, across 10 markets including Asia, the Middle East, Europe and the United States, the survey polled 1,798 high-net-worth entrepreneurs with at least $2 million in investable assets.