The entrepreneurship spirit and long-term outlook as a drive for sustainability
The skills required to launch a business from scratch and guide it toward success on the market fit a certain type of character. Persistence through tough times tends to be a key tenet of the personality of successful entrepreneurs. Other common characteristics include the ability to navigate periods of uncertainty, leadership, and the ability to take hard decisions and capacity to juggle with responsibilities in fields as diverse as human resources, product development, capital raising, reporting, management or sales, in businesses experiencing fast growth over time.
Entrepreneurs strive to adapt their businesses and their business models to a constantly evolving environment in which they operate while focusing on the long-term performance and resilience of their company.
This long-term perspective, alongside their ability to apply learning from professional life to personal investments, is part of the reason why entrepreneurs are increasingly interested in sustainable investments. BNP Paribas Wealth Management’s 2020 Global Entrepreneur Report highlighted that 70% of entrepreneurs are much more willing to invest sustainably than 18 months ago. As society increasingly understands the imperative of a the knowledge related to the need of the planet to transition to a more sustainable economy permeates across society, and the opportunities brought by this transition start to materialize, entrepreneurs are adapting fast and are ready to orient their investments and their behavior.
Interestingly, the report also highlights the residual hurdles for even greater allocation of assets by entrepreneurs to sustainable and responsible investments. For example, 58% of entrepreneurs polled believe that doing so would require some sacrifice in terms of return. Such data demonstrates that further information is required to highlight the value of sustainable investments as a solid source of long-term return, in line with portfolio risk/reward criteria.
Successful entrepreneurs often keep deep ties with their business as it grows. Retaining their equity ownership, they also contribute their ability to think through strategic challenges, and a keen insight on operating issues. As a result, their needs in terms of wealth planning and wealth management often require a deep understanding of both their personal and professional situation. Therefore, expertise of both personal finance and corporate finance is critical to serve them.
In that context, private banks like BNP Paribas Wealth Management have set-up dedicated teams across divisions to assist these entrepreneurs. with all their needs, from corporate credit and merger advisory for their businesses, to financing requirements and wealth planning on their personal life. In addition, acting as a leader in the promotion of the United Nations’ Sustainable Development Goals, we have also established a team focused on sustainable and responsible investments. As a result, we ensure our clients can access some of the best opportunities in this area, as well as benefit from tailored advice and cutting-edge tools to assess their appetite for these investments.
Entrepreneurs have been at the front of economic growth for the past decades. They are now also leading the charge in the transition to a more sustainable economy, both through their business management and through their personal investments. BNP Paribas Wealth Management is by their side to help them fulfill their ambitions.