Mindset of international entrepreneurs

On the cusp of the lifting of lockdown restrictions, Xerfi conducted a survey involving 1130 entrepreneurs (excluding agriculture) across Europe. Despite varying conditions from country to country, there’s little fundamental difference between an entrepreneur in France and one in Switzerland. The same holds true for those in Belgium, Italy, Luxembourg, and the North African markets where Actoria operates.

Insights into Entrepreneurial Sentiment

Entrepreneurs, on the brink of exiting lockdown, maintain a high morale:

1. 1. They are highly resilient (97%), albeit
   2. Concerned (~80%), and
   3. Ready to embrace bold strategies (~60%) for this phase.

• • Across all sectors, over 85% of entrepreneurs report good to excellent relations with stakeholders, demonstrating a sense of unity amidst this extraordinary situation.

• • ~25% of entrepreneurs anticipate a rebound in business in the week of May 11, with the first weeks of June and September also expected to see surges (~10% each).

• • On average, 25% of entrepreneurs anticipate a return to full operational capacity within 15 days. However, half of the entrepreneurs in the Trade-Transport-Hospitality-Restaurant sectors foresee a full return to capacity in more than 6 months. The trajectory of full capacity recovery is projected to reach 40% in 2020, with a significant acceleration in the second quarter of 2021 pushing it to 80%.

• The primary risk, for more than three quarters of those surveyed, is insufficient demand or constraints.

Business Model Considerations

Emerging from this ongoing health crisis are business models that prioritize the ability to unify companies. This is being considered across a spectrum of approaches, from partnerships to mergers, both vertically and horizontally. Such a strategy would enable companies to target different markets (in terms of size and geography), achieve cost synergies (including supplier negotiations), and leverage shared competencies. Additionally, the sense of not navigating such circumstances alone is an important factor in shaping a post-Covid-19 organizational model.

Xerfi’s analysis of entrepreneurial sentiment reveals a readiness to embrace boldness and foster good stakeholder relationships. These are crucial foundations for contemplating growth or optimization.

With its extensive experience and competencies on a European scale, Actoria is well-positioned to guide entrepreneurs in this analysis and in the execution of these models, which are vital to maintaining the economic stability of a country.