Young entrepreneurs from the G20 countries see themselves as the most dynamic source of technology innovation and expect their businesses to achieve strong growth and job creation in the next two years, according to a report by Accenture (NYSE:ACN) and the G20 Young Entrepreneurs’ Alliance (G20 YEA). However, these entrepreneurs demand more support from governments and larger businesses to help them sustain their contribution to economic growth.
The survey of 1000 business owners in the G20 countries aged forty or younger revealed that more than three quarters (76 percent) believe they are the major source of technology innovation in their countries. Forty one percent expect to grow their businesses by more than eight percent annually over the next two years and 81 percent expect to create new jobs in that period. The findings were published in a report, “ Entrepreneurial Innovation: How to unleash a key source of growth and jobs in the G20 countries,” at the G20 YEA Summit in Moscow, which brings together entrepreneurs and their local representative bodies from around the world.
Young entrepreneurs see their strong contribution to economic growth increasingly dependent on working with larger businesses. Thirty-five percent of respondents claim to collaborate with large businesses today and a further 46 percent intend to do so in the coming two years. They cite access to new markets, specialist skills and more expensive technologies as benefits of working with bigger organizations. Larger businesses appear less open, however. Fifty two percent of respondents of a survey of larger companies conducted for the report said they have either no collaboration with entrepreneurs at all or just one such initiative with at least a single small company.
“Success requires autonomy and freedom to innovate, but certainly not isolation, and young entrepreneurs are no longer so suspicious of larger companies or intimidated by them,” said Bruno Berthon, global managing director, Accenture Strategy and Sustainability Services. “But the feeling is not entirely mutual and big business should see entrepreneurs as peers, not just as small suppliers or irritating threats. Technology has shifted the balance of power towards small and agile inventors and larger incumbents would do well to bring young entrepreneurs into their ecosystem and benefit from their innovation, creativity and agility. Not only will this improve competitiveness, but help create long-term value for the communities in which we live and work.”Entrepreneurs also demand more support from government. Two thirds are not satisfied with current government policies. Eighteen percent say that governments take no actions to help entrepreneurs and a further 49 percent say that while they do, their efforts are not relevant or effective. Their primary demands are for changes to tax, the development of technology training and education, and public finance for entrepreneurs and small businesses.