HSBC Global Entrepreneurial Wealth Report: U.S. Entrepreneurs Optimistic Amid Global Market Uncertainty

Rhea-AI Summary

HSBC's Global Entrepreneurial Wealth Report 2024 reveals that 94% of U.S. high-net-worth and ultra-high-net-worth entrepreneurs are optimistic about future business prospects, with 88% expecting wealth growth in the next 12 months. The study surveyed 1,798 business owners across ten markets with at least $2 million in investable assets. Key findings show that 41% of U.S. entrepreneurs actively contribute to charitable causes, while 44% plan business succession. Despite 74% feeling government support, inflation remains a major concern for 43% of respondents. Notable trends include 36% owning multiple businesses and 20% planning exits within five years.

Positive

• 94% of U.S. HNW/UHNW entrepreneurs optimistic about business prospects
• 88% expect wealth growth in next 12 months
• Advanced succession planning with only 36% lacking formal plans vs. 52% global average
• 51% cite strong business opportunities availability
• 74% acknowledge government support through regulations and policies

Negative

• 43% cite inflation as major challenge, higher than 31% global average
• Only 25% have international business ventures, showing global exposure
• 20% planning business exits within 5 years

Insights

Market Research Analyst

The survey data reveals important insights about the U.S. entrepreneurial landscape, with implications for HSBC's wealth management business and market positioning. The 94% optimism rate among HNW/UHNW entrepreneurs and 88% wealth growth expectation suggest strong potential for HSBC's private banking services.

The high philanthropic engagement (41%) and community impact focus (80%) indicate growing demand for ESG-focused wealth management solutions. The succession planning statistics - with only 36% lacking formal plans compared to 52% globally - present significant opportunities for wealth transfer and advisory services.

However, concerns about inflation (43% vs 31% globally) and relatively lower government support sentiment (74%) suggest potential headwinds. The international expansion (25%) indicates room for HSBC to leverage its global network in cross-border wealth management.

• 41% of U.S. entrepreneurs actively contribute to charitable causes—the most philanthropic group among all markets surveyed.
• 81% agree they feel valued by society, and 80% agree they actively seek to make a positive impact in their communities.
• 44% of high-net-worth and ultra-high-net-worth (HNW/UHNW) U.S. entrepreneurs intend to pass their businesses on, either within the family or to other successors.
• 36% of U.S. entrepreneurs own multiple businesses, aligning with the global average, while 20% plan an exit within five years.

NEW YORK--(BUSINESS WIRE)-- HSBC’s Global Entrepreneurial Wealth Report 2024 reveals that an impressive 94% of U.S. HNW and UHNW entrepreneurs are optimistic about future business prospects, and 88% believe their wealth will grow in the next 12 months, even as markets face uncertainties.

The study, conducted by Ipsos UK on behalf of HSBC Global Private Banking across ten markets—including the U.S., UK, Switzerland, China, and UAE—surveyed 1,798 HNW and UHNW business owners who chose to take part in the survey with at least $2 million in investable assets, and included interviews with both first-generation and multi-generational entrepreneurs. By examining entrepreneurs’ values, motivations, and ambitions, the research unveils the factors driving their optimism and the nuanced approaches to wealth management across borders.

“As a leading global wealth manager, HSBC is committed to empowering entrepreneurs across the U.S. and internationally,” said Racquel Oden, HSBC US Head of Wealth, Premier, and Global Private Banking. “This report gives us valuable insights into how these leaders view today’s business landscape, which in turn helps us better serve their evolving financial needs.”

Additional U.S. Highlights:

• A Supportive, Yet Challenging Environment: While 74% of U.S. entrepreneurs agree they feel government support (in the form of regulations, laws and policies) —slightly below the global average—their optimism is underpinned by a long-term vision rather than short-term political factors. However, inflation remains a top concern, with 43% selecting it as a major challenge, compared to 31% globally.
• Confidence in Opportunity and Ability: 51% of U.S. respondents cite the availability of business opportunities as a core driver of optimism about their business prospects, while 50% attribute their confidence to personal business acumen, showcasing faith in both the market and their own abilities.
• Succession and Expansion in Focus: While 55% of U.S. entrepreneurs are first-generation, only 25% have ventures outside the U.S. When considering international markets, France (20%) and the UK (20%) are top expansion destinations. The report also highlights the advanced succession planning among U.S. entrepreneurs, with 36% lacking a formal plan, a contrast to the global average of 52%.

About HSBC

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$3,099bn at 30 September 2024, HSBC is one of the world’s largest banking and financial services organizations.

HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through Wealth and Personal Banking, Commercial Banking, Private Banking, Global Banking, and Markets and Securities Services. Deposit products are offered by HSBC Bank USA, N.A., Member FDIC. It operates Wealth Centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc.

For more information, visit: HSBC in the USA

View source version on businesswire.com: https://www.businesswire.com/news/home/20241114826584/en/

Media enquiries to:

Matt Kozar

Vice President, External Communications

matt.kozar@us.hsbc.com

Source: HSBC Bank USA, N.A.

FAQ

What percentage of U.S. entrepreneurs are optimistic about future business prospects according to HSBC's 2024 report?

According to HSBC's Global Entrepreneurial Wealth Report 2024, 94% of U.S. high-net-worth and ultra-high-net-worth entrepreneurs are optimistic about future business prospects.

How many HSBC-surveyed U.S. entrepreneurs plan to pass on their businesses?

44% of high-net-worth and ultra-high-net-worth U.S. entrepreneurs intend to pass their businesses on, either within the family or to other successors.

What percentage of U.S. entrepreneurs in HSBC's study lack formal succession plans?

36% of U.S. entrepreneurs lack a formal succession plan, which is better than the global average of 52%.

What is the main economic concern for U.S. entrepreneurs according to HSBC's 2024 report?

Inflation is the top concern, with 43% of U.S. entrepreneurs selecting it as a major challenge, compared to 31% globally.