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November 10, 2017 at 09:02 AM
Ultra-wealthy entrepreneurs in the U.S. and around the world are exhibiting an appetite for impact through their businesses and their investments, according to a new report by BNP Paribas and Bank of the West.
Thirty-nine percent of global entrepreneurs consider positive impact core to how they assess business performance, up from 10% two years ago. In the U.S., 51% of entrepreneurs consider themselves to be responsible investors.
Recent research showed that sustainable investing is rising across the globe.
The BNP Paribas study involved 2,650 elite entrepreneurs in 21 markets across the U.S., Europe, Asia and the Middle East with a total net worth of $40 billion. It defined “elite entrepreneurs” as highly successful business owners managing companies with multimillion-dollar annual turnovers and similarly substantial personal fortunes.
Some 300 U.S. entrepreneurs participated in the survey. Their companies generated $17 million in annual revenue, on average, and had more than 200 employees.
Thirty-six percent of U.S. entrepreneurs in the study were primarily focused on job creation, another 36% on clean energy and 31% on providing clean water to communities in need.
Forty-two percent of the American contingent said their chief motivation for socially responsible investing was to have peace of mind that their investments were not causing any harm.
Thirty-six percent said they wanted to invest in a way that reflected their values, and 34% wanted to ensure that they had a positive impact for a specific set of good causes.
The American entrepreneurs reported that the socially and environmentally focused investment vehicles that most interested them were equity funding, social business investing and social impact bonds.
The survey found that wealthy U.S. entrepreneurs had very diverse portfolios: On average, they allocated 19% to their own business, 15% to stock, 13% to cash, 12% to fixed income and 11% to real estate.
