A recent HSBC Private Bank study found that the Middle East has the largest proportion of millennial entrepreneurs in the world.

1. Who Has the Largest
Proportion ofUnder-
35 Entrepreneurs?
Ehsan Bayat

2. Who Has the
Largest
Proportion of
Under-35
Entrepreneurs
?
 More than half of the population in the Middle East is under the
age of 25, and this incredibly large population of young people has
raised a number of concerns over the past few years. However,
many people see the region’s demographics as an asset, especially
in terms of entrepreneurship.A recent study by HSBC Private
Bank has affirmed this view by finding that the Middle East boasts
a higher proportion of millennial entrepreneurs than any other
region in the world.
 The study looked at more than 2,800 business owners with
organizations valued between $250,000 and $20 million.
Researchers found that the average entrepreneur in the Middle
East employs about 100 individuals and generates more than $10
million in revenue.These figures are nearly double the averages
found in the United States, France, Germany, and the United
Kingdom. Moreover, the average age of entrepreneurs in the
region is only 26.

3. Who Has the
Largest
Proportion of
Under-35
Entrepreneurs
?
 HSBC Private Bank also found an important distinction between
how people in various regions evaluate success. In the Middle East,
as in many regions in Asia, success is judged by the actual size of
the business created. In contrast, entrepreneurs in NorthAmerica
and Europe tend to use personal wealth as the primary marker of
entrepreneurial success.This finding is especially interesting since
startups in the Middle East andAsia tend to be both much larger
and much more effective at generating income.
 The oldest entrepreneurs were found in the United States with 62
percent of them over the age of 55. In the United Kingdom, nearly
half of all entrepreneurs are in this oldest age group. In France and
Germany, the majority of entrepreneurs were considered “middle-
aged,” meaning that they were between the ages of 35 and 55.

4. What
Millennial
Entrepreneurs
Looks Like in
the Middle
East
 Middle Eastern youth are clearly enterprising.The study revealed that
nearly half of all entrepreneurs in the region decided to create their
own businesses during their high school or college years.This number
is significantly higher than the number of young entrepreneurs in
other parts of the world. Further, about a quarter of Middle Eastern
business owners turned to entrepreneurship after making some
headway in their careers.These individuals had thought about
entrepreneurship at earlier stages of life but wanted to get firsthand
professional experience before creating their own ventures.
 The impulse for entrepreneurship among people under the age of 30
is growing around the world, but is seen most strongly in the Middle
East perhaps because of the extremely young average age in the
region. Economic engagement like this is key to the development of
countries in the region.The HSBC Private Bank study found that
younger Middle Eastern entrepreneurs are creating foundations and
estate plans to give back to the community at rates much higher than
their older counterparts. In addition, younger entrepreneurs tend to
be more interested in social change and more engaged in addressing
social issues.Older generations are more likely to donate money, but
younger generations prefer donating time and knowledge.

5. What
Millennial
Entrepreneurs
Looks Like in
the Middle
East
 When HSBC released the report, its Global Market Head of Private
Banking, Middle East explained why we should view Middle
Eastern youth as an asset. He also described how the
entrepreneurial drive of the young population has the power to
reshape the region’s economic future.The approach to
entrepreneurship among the young is marked by creativity, and
governments have been shifting policies to support millennial
entrepreneurs as they launch their first businesses.While the
sincerity of such programs has been called into question, the fact
that governments are making any effort is a testament to how
important entrepreneurship is for the future of the region. It is also
likely a motivational factor in so many young people choosing to
become entrepreneurs.

6. TheStrong
butShifting
Entrepreneuri
al Legacy in
the Middle
East
 Moving forward, it may prove helpful to consider the role that family
plays in business in the region. More than 60 percent of active
entrepreneurs in the Middle East come from families who own
businesses. However, only about a quarter of millennial entrepreneurs
are shareholders or executives in the family business. Evidently,
millennial entrepreneurs find it important to prove their own ideas
and grow their own market share. At the same time, these individuals
responded that they are more likely to bring family members into
their business than to leave their business to be with family members.
 The HSBC Regional Head of Corporate Banking and Structured
Finance for the Middle East and North Africa says that young
entrepreneurs are more likely to embrace a collaborative approach to
business as they take over family businesses or create their own.
Creating circumstances that promote collaboration could open
pathways to business for people who would not otherwise consider
entrepreneurship. In a way, collaboration is seen as a natural
progression as the Middle East business landscape evolves. More
options are becoming available, but competition is also increasing.
People need to adapt aggressive, creative growth strategies, which
often involves casting a wider net among friends and family for
support and input.