Ironically, entrepreneurs remain pessimists but in the mood for hiring

3 in 5 will start business.

Entrepreneurs in Singapore are positive about their business prospects in the next six months, according to the Global Entrepreneur Indicator Survey from the Entrepreneurs’ Organization (EO) released today.

Nearly eight out of ten (79%) entrepreneurs predicted that their companies’ net profit will either remain the same or increase, and only seven per cent of them plan to reduce their full-time employee headcount.

In the first half of the year, 88 per cent of the entrepreneurs surveyed were able to maintain or increase their businesses’ revenue and one fifth had their debt load increased.

Arvind Agarwalla, Communications Director of NE/SE Asia, EO Regional Council, said the positive results demonstrate Singapore entrepreneurs’ adaptability and resilience during uncertain times.

“Enterprises in Singapore have continued to see an increase in profits amid the global economic crisis, mostly due to sustained demand from the region and the Government’s strong support of local entrepreneurship.

Nearly half (41%) of the entrepreneurs, however, felt that the country’s economic environment would deteriorate in the next six months. This figure nearly doubled the global average of 23%.

“With the ongoing economic crisis and the slowdown of China and India, two of Asian economic powerhouses, Singapore’s trade-dependent economy is unavoidably influenced. At the same time, enterprises are facing the challenge of talent shortage and a high employee mobility rate.” Stated Tony Seow, Chapter President for EO Singapore

“To overcome the possible hurdles ahead, enterprises must strive to increase their productivity level. For example, entrepreneurs need to adopt flexible work practices and provide career development opportunities to their staff – this will help them to nurture and retain talent needed to grow their business.”

The Singapore survey also showed that:

· More than three fifths (61%) of enterprises planned to increase their headcount in the next half year;

· Even though 63 per cent of Singapore entrepreneurs said they would be willing to start a new business right now, the figure was much lower than the global average of 80%;

· One in five entrepreneurs was able to increase their access to capital during the past six month.