Latest / UBS Trending / See what's inside the 2025 Entrepreneurs report

Transcript

See what's inside the 2025 Entrepreneurs report · UBS Trending

• 0:00
  Entrepreneurs have
• 0:01
  a lot to consider.
• 0:02
  We're at the midpoint
• 0:03
  of a decade
• 0:03
  that has brought solid
• 0:04
  economic growth
• 0:05
  and technological breakthroughs,
• 0:07
  but which also gave us
• 0:08
  a global pandemic and ongoing
• 0:10
  geopolitical conflicts.
• 0:12
  This is the main scenario
• 0:13
  that UBS explored
• 0:15
  in the first edition
• 0:16
  of its UBS Global
• 0:17
  Entrepreneur report.
• 0:18
  So what are entrepreneurs
• 0:20
  thinking about today?
• 0:22
  We're going
• 0:22
  to get into those details
• 0:23
  and a whole lot more right now
• 0:24
  on UBS trending.
• 0:36
  Hi, everyone,
• 0:37
  and thank you so much
• 0:38
  for joining us again
• 0:39
  for another episode of UBS
• 0:40
  trending.
• 0:40
  I'm Anthony Pastore,
• 0:41
  your host,
• 0:42
  for the next few minutes,
• 0:43
  and I am back in the studio
• 0:44
  with UBS as business owners.
• 0:46
  Client segment head
• 0:47
  James Jack. James,
• 0:48
  good to have you with me.
• 0:49
  Good to see you.
• 0:50
  And thank you for having me
• 0:50
  back, Anthony. Always.
• 0:51
  So I wanted to share
• 0:53
  with our audience
• 0:53
  that you just released
• 0:54
  a global entrepreneur report
• 0:56
  for 2025.
• 0:57
  It's fantastic.
• 0:58
  Lots of great information
• 0:59
  in there,
• 0:59
  which we're going to get to
• 1:00
  right now.
• 1:01
  And I want to kind of start off
• 1:02
  with what I found
• 1:03
  to be
• 1:03
  one of the most
• 1:04
  interesting parts of the report,
• 1:06
  which was not only that,
• 1:07
  it's global.
• 1:08
  So it's for all,
• 1:09
  all of all over the world,
• 1:10
  but it's solely of UBS clients,
• 1:13
  which is a really unique
• 1:14
  survey that,
• 1:16
  we usually kind of
• 1:16
  go out to the public more talk
• 1:19
  more about that with us.
• 1:20
  Thanks again,
• 1:21
  Anthony, for having me back.
• 1:22
  The report was a really huge
• 1:24
  effort across UBS,
• 1:25
  spearheaded
• 1:26
  by our colleagues in Zurich.
• 1:28
  But yeah, you're right.
• 1:28
  The the global nature
• 1:30
  of of bringing in
• 1:31
  UBS clients
• 1:33
  is really something special.
• 1:34
  So we surveyed over
• 1:36
  150 entrepreneurs,
• 1:37
  with an average revenue
• 1:38
  of more than $120 million.
• 1:40
  It's pretty huge from all across
• 1:42
  the Americas, Europe,
• 1:43
  Switzerland and Asia.
• 1:45
  And I think that
• 1:46
  the significant
• 1:47
  size of these businesses
• 1:48
  is really something unique.
• 1:50
  It offers, I think, again,
• 1:52
  a lot of credibility
• 1:53
  in its findings
• 1:53
  for other entrepreneurs
• 1:54
  who are squarely,
• 1:56
  in the middle market,
• 1:58
  in terms of the key
• 1:59
  findings, I think a general theme
• 2:01
  about business owners
• 2:02
  is that they are optimistic
• 2:04
  about their industry's prospects.
• 2:06
  Although, like you
• 2:06
  said, it is
• 2:07
  it is tempered a bit by concerns
• 2:09
  around tariffs and geopolitics.
• 2:11
  I don't think that's
• 2:12
  too much of a surprise
• 2:13
  right there.
• 2:13
  But what's interesting
• 2:14
  is that vis-a-vis
• 2:15
  the other regions,
• 2:17
  those in the Americas
• 2:18
  showed a notably different
• 2:19
  approach, across several areas.
• 2:20
  Yeah.
• 2:21
  I wanted to break
• 2:21
  that down with you,
• 2:22
  because I do find that
• 2:23
  to be really interesting.
• 2:24
  There's some really great charts
• 2:26
  and infographics
• 2:26
  that you use within the report.
• 2:27
  So talk about that,
• 2:29
  that portion of it.
• 2:30
  What's happening in the Americas?
• 2:31
  Well, I think to start,
• 2:32
  Anthony, it is about optimism.
• 2:34
  Business owners in
• 2:35
  general are very optimistic.
• 2:36
  But 60%, of the of those that
• 2:40
  we surveyed were at least
• 2:41
  somewhat optimistic.
• 2:42
  However, those in the Americas
• 2:43
  are very optimistic
• 2:45
  about 29%,
• 2:47
  whereas their peers in Europe
• 2:48
  and Asia were a bit
• 2:49
  more muted, only, 6%
• 2:51
  and 13% of those respondents
• 2:53
  were very optimistic.
• 2:55
  But we also asked
• 2:56
  where they plan
• 2:56
  to make investments,
• 2:58
  in the next year,
• 2:58
  about a third of those
• 2:59
  in the Americas plan
• 3:00
  to significantly increase
• 3:01
  their total business investments,
• 3:03
  whereas their peers
• 3:04
  were, again, a bit more muted.
• 3:06
  Elsewhere,
• 3:06
  about 20%
• 3:08
  actually said that they plan
• 3:09
  to decrease their investments.
• 3:10
  That's that's double
• 3:12
  than that of those,
• 3:13
  from the Americas, actually.
• 3:14
  Great.
• 3:15
  I want to talk about
• 3:16
  what they're investing in.
• 3:17
  And one of the things
• 3:18
  that you talk about in the report
• 3:19
  is that entrepreneurs
• 3:20
  are expecting to invest
• 3:22
  in artificial intelligence.
• 3:23
  It's almost like an inescapable
• 3:24
  investment these days.
• 3:25
  So what
• 3:27
  what are they thinking about
• 3:28
  when it comes to AI
• 3:29
  and how are they investing in it?
• 3:30
  It's definitely something
• 3:32
  that's on on their big topics.
• 3:33
  Yeah,
• 3:33
  of course
• 3:34
  I don't think that is in general
• 3:35
  a bit of a surprise.
• 3:36
  So they have a little doubt.
• 3:38
  They have they have little doubt.
• 3:40
  Excuse me.
• 3:40
  That AI is a great potential
• 3:42
  for nearly
• 3:43
  two-thirds of them actually think
• 3:44
  it's going to be
• 3:45
  the greatest commercial
• 3:46
  opportunity for their industry.
• 3:49
  But as a result
• 3:50
  of that,
• 3:50
  just a bit less than half
• 3:51
  actually planned to invest in AI,
• 3:53
  and digital transformation
• 3:54
  in general.
• 3:55
  So that's fairly consistent
• 3:56
  across all the regions.
• 3:58
  But one area of difference,
• 4:00
  though,
• 4:00
  is that more than two thirds
• 4:01
  of Americas,
• 4:03
  respondents, actually,
• 4:04
  they plan to invest in people,
• 4:06
  so almost 20 points
• 4:07
  higher overall.
• 4:07
  So there's a lot of talk about AI
• 4:09
  and people and what that means.
• 4:10
  It's an interesting little,
• 4:12
  little difference there.
• 4:13
  Yeah.
• 4:13
  It is kind of interesting
• 4:14
  to see it that way.
• 4:15
  I think people
• 4:15
  automatically think AI
• 4:17
  and that means a de
• 4:18
  descaling of human capital,
• 4:21
  but that's not the case.
• 4:22
  And it's
• 4:22
  nice to see that business owners
• 4:23
  are keeping
• 4:25
  their human beings in mind
• 4:26
  when it comes to even
• 4:27
  investing in AI.
• 4:29
  One thing that I was
• 4:30
  really intrigued
• 4:31
  about in the report,
• 4:31
  and I guess I never
• 4:32
  really thought about it,
• 4:33
  but something
• 4:33
  that I'm sure you've come across
• 4:34
  is that,
• 4:36
  a lot of the business owners
• 4:37
  that you interviewed or surveyed
• 4:39
  in this,
• 4:39
  we're talking
• 4:39
  about their succession plans,
• 4:40
  and we've had conversations
• 4:42
  about that.
• 4:43
  But also what I found interesting
• 4:44
  is that not a lot of them
• 4:46
  that you found were
• 4:47
  investing in their own
• 4:48
  private wealth,
• 4:49
  which I found to be.
• 4:50
  So I guess they focus so much
• 4:52
  on the business,
• 4:52
  they didn't have time to think
• 4:53
  about their own personal uses.
• 4:55
  Talk about that.
• 4:56
  Because I think that's such a
• 4:57
  an interesting place
• 4:58
  for a business owner
• 4:59
  to be
• 4:59
  when they're
• 5:00
  exiting their business,
• 5:01
  but they don't
• 5:02
  really have anything
• 5:02
  on the personal side.
• 5:03
  Yeah,
• 5:04
  I think you've you've learned
• 5:05
  a lot about business owners
• 5:06
  and they kind of,
• 5:08
  you know, how
• 5:08
  they think
• 5:08
  about things in investment.
• 5:09
  So yeah, exactly.
• 5:11
  You're right.
• 5:11
  About half of the America's
• 5:13
  respondents and slightly lower,
• 5:15
  number overall
• 5:16
  say that they have not built up
• 5:18
  their wealth
• 5:19
  outside their business.
• 5:21
  I'm not surprised like that
• 5:22
  in general,
• 5:23
  like you just mentioned,
• 5:24
  but I was a bit
• 5:25
  surprised because,
• 5:26
  on the other hand,
• 5:27
  these are UBS clients.
• 5:29
  They have fairly
• 5:30
  significant businesses.
• 5:32
  So you would think they'd
• 5:33
  have a bit of a leg up.
• 5:34
  And I think it goes to show,
• 5:36
  that across the gamut,
• 5:37
  business owners,
• 5:38
  tend to be focused
• 5:39
  on the here now.
• 5:40
  So I'm sure for
• 5:41
  for most business owners
• 5:43
  in general,
• 5:43
  many of them don't likely
• 5:45
  have a formal financial
• 5:46
  advisor relationship.
• 5:47
  That number would be
• 5:48
  actually probably
• 5:49
  much, much lower.
• 5:49
  So so for me,
• 5:51
  this is why we're really pounding
• 5:53
  the pavement at UBS
• 5:54
  to try to connect
• 5:55
  with business owners
• 5:55
  and have them
• 5:56
  think about all of this.
• 5:58
  After all, I think a sale
• 5:59
  or a business owner sale
• 6:01
  may be the most significant
• 6:02
  financial
• 6:03
  event of a business owners life.
• 6:04
  So there's a lot at stake.
• 6:06
  And too often I see business
• 6:08
  owners scrambling
• 6:09
  or being reactionary.
• 6:11
  They're not being deliberate.
• 6:12
  So, with the optimism
• 6:14
  that many of these
• 6:14
  business owners have,
• 6:16
  coupled with
• 6:17
  some of the recovery
• 6:18
  in the M&A market that we saw
• 6:20
  last year,
• 6:21
  I think it's very possible
• 6:22
  that that recovery in M&A
• 6:23
  can continue.
• 6:24
  And I think many strategic buyers
• 6:27
  and private equity buyers
• 6:28
  will need to find
• 6:29
  strong acquisition targets
• 6:31
  to meet their own growth goals.
• 6:32
  That's a great place
• 6:33
  for business owners to be in.
• 6:35
  But far too often
• 6:36
  business owners,
• 6:37
  you know, haven't done
• 6:38
  the proper financial planning.
• 6:39
  They haven't talked
• 6:40
  to their advisors
• 6:41
  about advanced wealth planning.
• 6:44
  That's going to
• 6:44
  really help them maximize
• 6:45
  the proceeds that they keep
• 6:47
  from a business sale.
• 6:48
  So, you know, maybe
• 6:49
  kind of shameless plug for us is,
• 6:51
  you know,
• 6:51
  work with your UBS
• 6:52
  financial advisors to help build
• 6:53
  a fulsome deal team,
• 6:55
  do the planning,
• 6:56
  connect to an investment banker
• 6:57
  well in advance of a sale?
• 6:59
  All of that
• 7:00
  can make a huge
• 7:01
  positive impact.
• 7:03
  And hopefully that helps reduce
• 7:04
  any of the unease
• 7:05
  or agita that comes,
• 7:07
  by, you know,
• 7:08
  these entrepreneurs thinking
• 7:09
  that they don't have enough
• 7:10
  of their own private wealth
• 7:11
  to enjoy their next chapter.
• 7:12
  That's a true New Yorker
• 7:13
  who uses the word agita.
• 7:14
  And a UBS trading episode.
• 7:16
  And, you know, one of the things
• 7:17
  and just to follow up with that,
• 7:19
  I really love that in the report,
• 7:21
  you acknowledge and I quote, that
• 7:22
  most of the survey participants
• 7:25
  acknowledge the importance
• 7:26
  of expert investment
• 7:28
  guidance or advice.
• 7:29
  So clearly the shameless plug,
• 7:31
  it's true.
• 7:32
  Will they will they act on it.
• 7:33
  Will they take the next step.
• 7:34
  Right.
• 7:34
  And hopefully
• 7:35
  they will,
• 7:35
  especially as they're getting
• 7:36
  some of them
• 7:37
  are getting close
• 7:37
  to that exit plan
• 7:38
  where they could
• 7:40
  bring in a large
• 7:41
  sum of money
• 7:41
  when they sell their business.
• 7:42
  So it's a huge, huge
• 7:44
  opportunity for business owners.
• 7:45
  It would be a shame to be
• 7:47
  not thinking about it diligently.
• 7:49
  Exactly.
• 7:50
  James, thanks very much.
• 7:51
  Congratulations on the report.
• 7:52
  The Global Entrepreneur Report
• 7:53
  for 2025 First Edition.
• 7:55
  I'm sure that we many more
• 7:56
  in the years to come.
• 7:58
  Knock on wood.
• 7:58
  Fingers crossed.
• 7:59
  Thank you for having.
• 8:00
  Good to see you James
• 8:00
  Jack, very great
• 8:01
  to have you come back again soon.
• 8:02
  And thank you all for joining us.
• 8:04
  For more about the report,
• 8:05
  please speak with your UBS
• 8:07
  financial advisor
• 8:08
  or you can visit the website
• 8:09
  that is on our screen
• 8:10
  right there.
• 8:11
  Global entrepreneur
• 8:12
  Dash report Dash U.S..
• 8:15
  If you're interested in
• 8:16
  seeing what entrepreneurs
• 8:17
  are thinking about
• 8:17
  or you're an entrepreneur
• 8:18
  yourself,
• 8:19
  lots of great information
• 8:20
  in that report
• 8:21
  for you to take a look
• 8:22
  at and make sure to follow us
• 8:23
  on social media.
• 8:24
  We're on LinkedIn,
• 8:25
  Facebook, and Instagram.
• 8:26
  Plus,
• 8:27
  you can check out on Instagram,
• 8:28
  our dedicated channel at UBS
• 8:30
  Trending.
• 8:31
  Lots of great UBS Studios
• 8:32
  content there
• 8:33
  for you to take a look at.
• 8:34
  And as always again,
• 8:35
  we'll remind you
• 8:35
  for the fifth time, I think.
• 8:37
  Make sure you are chatting
• 8:39
  with your financial advisor.
• 8:40
  Until next time.
• 8:41
  I'm Anthony Pastore,
• 8:42
  you have a great rest of your day
• 8:43
  and remember
• 8:43
  to keep your eyes
• 8:44
  on what's trending.
• 8:45
  We'll see you soon.