Entrepreneurs Can Find Gems of Opportunity in Downturn

FF Fashion

Thu, Dec 04, 2008
The Straits Times
By Elizabeth Wilmot



AN ECONOMIC downturn offers entrepreneurs a time for opportunities, providing fertile ground for the strongest ideas and enterprises to thrive, a top regional banker said yesterday.

'In this situation, it's perseverance, the ability to spot opportunities, sometimes asking the questions that no one is asking, daring to take a different path from what the majority of people are taking,' said Mr Didier von Daeniken, the chief executive of Barclays Wealth Asia Pacific.

He spoke at the release of The Entrepreneur In Adversity, a new report published by Barclays Wealth and the Economist Intelligence Unit.

The report was based on a survey conducted earlier this year of 2,300 affluent investors around the globe with investable assets of £500,000 (S$1.16 million) to over £30 million.

The authors also interviewed experts on entrepreneurship.

The survey found 54 per cent of those surveyed in Singapore said the environment for entrepreneurs in the country had improved significantly over the last decade.

This was just above the regional average but well above Hong Kong's 35 per cent. It was, however, well behind the likes of Indonesia, which recorded 71 per cent, and Malaysia, which had 68 per cent.

North Africa and the Middle East showed the greatest improvements in the environment for entrepreneurs, the survey found.

The top two advantages of being an entrepreneur cited by respondents in Singapore were: making large sums of money, and the quest for financial independence.

Another key advantage, they said, was the ability to create influential new products and services.

One of the most widely cited advantages in other countries - the ability to be your own boss - came in only fourth among respondents in Singapore, who believed the top traits of a successful entrepreneur instead were perseverance and a willingness to take risks.

This assessment was similar to responses given by those who were surveyed elsewhere.

'For some entrepreneurs, a challenging economic environment is a time of opportunity,' said Mr von Daeniken.

'And while success is far from guaranteed in these conditions, previous downturns have been fertile breeding grounds for the strongest ideas and enterprises.'

He said successful entrepreneurs give themselves a three- to five-year horizon to spot opportunities that will help them come out stronger.

'Typically, a successful entrepreneur will ask himself how the situation will evolve from next week, or four or five years. They will really stick to their core competencies and are very focused.

'We are now going through unprecedented times. We hope that many of those surveyed will continue to be tenacious and emerge stronger once the storm is over.'

Mr von Daeniken concluded on a positive note: 'There is an opportunity in every environment. Often, the more difficult the environment, the more successful the entrepreneurs turn out to be.'