HSBC Global Private Banking has just published the “Global Entrepreneurial Wealth Report 2024,” based on research with high net worth and ultra-high net worth business owners across 10 global markets.

A new report by HSBC Global Private Banking shows that entrepreneurs globally are optimistic that their personal wealth will grow in the future, with 90 per cent thinking it will get either a lot or a little better.

The top reason for the optimism was business opportunities and performance (56 per cent), while the second highest was their abilities as a business owner (52 per cent). Notable too is that younger entrepreneurs tend to be more optimistic about future wealth than their older counterparts, the report shows. The optimism is strongly linked to technology, with nearly half of entrepreneurs in the survey (46 per cent) saying that technology will be a driver of business opportunities.

The study also reveals that 55 per cent of entrepreneurs are considering personally moving to a new location in the next 12 months. Almost one in 10 entrepreneurs in the survey would consider moving to Singapore, while similar numbers would look at relocating to Switzerland, the UK or the US.

Sixty-nine per cent are also considering moving some or all of their wealth to a new location in the next 12 months. Almost one in 10 entrepreneurs in the survey would consider moving their wealth to Switzerland, while similar numbers would look at Singapore, the UK or the US or France. Seventy-three per cent are also considering conducting business in any other market in the next 12 months, the survey shows.

When asked to select their biggest global concerns, inflation came top after being selected by 31 per cent of entrepreneurs, followed by climate change at 24 per cent.

The findings are based on extensive research carried out by Ipsos UK on behalf of HSBC among 1,798 high net worth business owners with at least $2 million of investable assets. A third (583) were ultra-high net worth with a net worth of more than $100 million. The research was conducted online in mainland China, France, Hong Kong, India, Singapore, Switzerland, Taiwan, UAE, the UK and the US. 

Family and legacy
There was broad agreement too about family and legacy. In total, 78 per cent of those surveyed said that keeping the business in the family and preserving their legacy is important. But just over half of current business owners (52 per cent) said they have no plan in place for how their business might continue after them. A further 30 per cent do have a plan to pass the business onto the family and 8 per cent have a plan to sell.

Entrepreneurs in the Asian markets, where legacy and family are traditionally important, tend to be less likely to plan, while the most likely to plan are those in the UK and the US, which is in the top spot.

Trust in the next generation also seems to be quite high, with 77 per cent of entrepreneurs in the survey saying they have complete trust in the next generation to maintain the business. However, there are also worries about the younger generation’s ability to run companies. Forty per cent of entrepreneurs said they are concerned about finding a successor and 35 per cent suggest they do not have enough confidence in the next generation.

Meanwhile, 82 per cent of entrepreneurs said they are confident that the next generation will be able to manage the family’s wealth. Yet only 26 per cent have started discussions about wealth transfer, the survey reveals. Thirty-nine per cent plan to start the discussion in the near future, but this could simply reflect the sort of good intentions we all have, the firm added.

“It’s often a double-edged sword when it comes to passing on the business to the next generation. Entrepreneurs want their children to enjoy the journey and successes that they have had, but are acutely aware of the challenges that come with it and the personal sacrifices they will need to make,” Christo Scott, managing director, HSBC Global Private Banking, said.

HSBC Global Private Banking helps clients manage, grow and preserve their wealth for generations to come. Its network of global experts helps clients access investment opportunities around the world, plan for the future with wealth and succession planning, manage their portfolio with tailored solutions, and find the right support for their philanthropy.