LONDON — Middle Eastern entrepreneurs are leading the way when it comes to angel investing, according to HSBC Private Banking Essence of Enterprise report. Two-thirds of entrepreneurs in the Middle East (66%) are angel investors, funneling both capital and expertise back to the entrepreneurial community, with the USA (54%) and Asia Pacific (45%) next in line.
The report, which researched the views of over 3,700 successful entrepreneurs across 11 countries globally, also found that differences exist between the generations in how they perceive and approach angel investing. Over half of younger Middle Eastern entrepreneurs (57%) view angel investing as a way to connect and collaborate with peers, staying up to date with industry progress.
In comparison, over half (52%) of an older generation of Middle Eastern entrepreneurs, view angel investing as a way to diversify and grow their investment portfolio.
When it comes to sourcing new investment opportunities, over half (53%) of Middle Eastern entrepreneurs source these through their friends, rather than using a financial advisor (38%). They also perceive their role to be supportive, cultivating business development and leadership skills.
Nearly a quarter (24%) of Middle Eastern entrepreneurs consider social responsibility, being active in the community, or environmental responsibility as their top priority as a business owner, compared to the global average of 21%.
The research also suggests a strong relationship between an emphasis on social impact and entrepreneurial ambition in the Middle East. Half of Middle Eastern entrepreneurs projecting high growth ambitions state that they started their ventures with the intention of creating positive social impact, compared to 35% of those projecting the lowest growth.
This suggests social impact should be seen as an integral part of the recipe of entrepreneurial success in the Middle East, and not separate from it.
Those entrepreneurs who project high growth ambitions are also more likely to have a mentor. In the Middle East (89%) of entrepreneurs have a mentor relationship, viewed as a highly effective tactic for learning and development, in comparison to Europe (59%) where it seems that entrepreneurs are yet to be convinced of the value of mentorship. — SG