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Entrepreneurs & Angels - Rising Importance Of Peer-To-Peer Engagement - Scorpio

Sebastian Dovey

Scorpio Partnership

7 January 2015

did in producing the 2015 Global Entrepreneurialism report. That item traced the wealth creation journeys of entrepreneurs and angel investors. As always, this publication is grateful to Seb Dovey for his insights and invites readers to respond with their views.

Entrepreneurs are broadly considered to be optimistic and constantly on the lookout for new opportunities. They are also considered to be extremely self-directed. However, what is notable among the global wealthy entrepreneurs examined in our study is the extent to which they involve others in the process.

For instance, in the context of making decisions in the field of angel investing, we found that 37 per cent of all entrepreneurs fully involve their spouse in the decision-making. Alongside this and more significantly, 36 per cent fully involve professionals in the decision-making process.

Inevitably, with children, extended family and friends, this figure drops back. But it remains a significant finding showing that these leading entrepreneurs do adopt a reclusive approach to their actions.  They prefer to engage and share. Not because they lack confidence, but because they recognise they cannot act as effectively alone.

The involvement of others appears to in part be stimulated by a number of anxieties acutely present among entrepreneurs across the globe. These centre on a balance between undertaking risk and ensuring the family and next generation are informed and prepared, possibly to take on the reins.

Through the entirety of the study spanning over 2,500 entrepreneurs, it became apparent that ensuring the security of the family and the longer term family interests are of paramount concern to the entrepreneur. Notably, only 24 per cent of the total sample did not have any children at all. Therefore, while a solid return is always in the foreground, the sense of family obligation is never far from the front of mind.

This agenda no doubt goes some way to explaining the revelation that the spouse of the entrepreneur is typically a central part of the decision-making process. In essence, the results from the research process in 2014 suggest that the view of the entrepreneurial worlds is that behind every good entrepreneur is an even greater family.

In tandem with the importance placed by successful entrepreneurs on interacting with their family or financial professionals, entrepreneurs showed a desire to exist and communicate within a likeminded community. It came as no surprise when research showed that there is a clear sense of future entrepreneurs increasing the value they place on interacting with their peers.

To date peer-to-peer engagement is still relatively haphazard, explained several successful entrepreneurs. But it is an area of importance for the future. A community of this type (typically accessed through angel networks), explained the entrepreneurs, enables the entrepreneurs to stay inside the information flow.

Most of the entrepreneurs interviewed consider this to be critical in order to capitalise on both the opportunities they are already engaged with and new ones that emerge. In fact, there is a relatively strong undercurrent of concern among the entrepreneurs of today that they are potentially not being completely effective when it comes to maintaining in the “information loop”.

This has led to an increased interest in how angel investment communities can be accessed by them. In particular, the opportunity to access networks through digital communities. While still a relatively new concept, it is noteworthy to consider the level of interest among the newer generation of entrepreneurs.

Today, approximately 40 per cent of the under 40s, for instance, consider the future of peer-to-peer communities to be directly linked to digital access. Among Chinese entrepreneurs this figure rises to a striking 51 per cent. Looking to the future, based on the input, our expectation is the role of digital communities supporting global entrepreneurs is going to rise in both supply and demand.

Indeed, the generation under 40 are already driving this. We expect, therefore, to dig deeper into this phenomenon with the global entrepreneurs and angels in the years to come as it rises up the agenda of wealth creation.