91% of wealthy individuals in the Middle East believe viewing failure positively is essential for an economy to grow, according to the latest edition of Barclays Wealth Insights

74% of respondents in Saudi Arabia agree that if their business is failing, an entrepreneur should persist rather than cut their losses

73% of Qatari respondents, the highest globally, believe they have learnt a great deal from their past setbacks, and 85% feel they have bounced back quickly from them

Dubai - UAE, 12th November 2012: Ninety one per cent of Middle East high net worth individuals (HNWIs) agree that viewing failure positively is essential for an economy to grow, in comparison to 74% globally. Compared to those in Western economies, respondents from the MENA region tend to have a more positive view of setbacks, show greater persistence and better see the benefits of overcoming adversity, according to the latest report in the Barclays Wealth Insights series.

The overwhelming majority of respondents in the Middle East (91%) and Asia (80%) believe that viewing failure positively is essential for an economy to grow, whilst these figures drop to 71% and 69% in the US and Europe. In addition, respondents in Asia and Central & South America are far more positive about the opportunities presented by the recent global crisis (53% and 60%) compared to the US and Europe (44% and 42%).

Launched today (12 November 2012) and based on a global survey of more than 2,000 HNWIs comprising entrepreneurs, business leaders and investors, the report, If at First You Don't Succeed... Mapping Global Attitudes to Adversity, provides an in-depth study into the different ways in which individuals around the world view and respond to setbacks.  The report explores how different cultures value traits such as persistence and optimism, the role of luck and how entrepreneurs view setbacks as a stepping stone to future success.

More respondents in the Middle East (81%) than any other region believe that past failure in entrepreneurial endeavours increases the chance that a new business will succeed. This attitude to failure is further demonstrated when respondents were asked whether they would hire an individual who had experienced entrepreneurial failure; within the MENA region, Saudi (89%) and Qatari (86%) respondents confirmed that they would, compared to 61% of UAE respondents. Elsewhere, just 42% and 47% of respondents in the UK and Japan respectively would hire someone with a failed enterprise on their CV. This figure drops to just 25% in Monaco.

The research on persistence reveals that 74% of Saudi HNWIs are of the view that entrepreneurs should persist if their business is floundering, as opposed to cutting losses. Within the MENA region, 36% of Qataris are most likely to cut their losses when the business is underperforming. However, an overwhelming 100% believe that past failure will increase chances of future success in entrepreneurial endeavours.

The report reveals that respondents believe that being successful is significantly reliant on 'skills/intelligence' and 'effort/hard work. On average, over a third of respondents attributed success to these factors (35% each). Chance and connections, on the other hand, are seen as much less important factors, at 16% and 15% respectively. In the MENA region, the UAE ranks highest when it comes to belief in 'skills/intelligence' and 'effort/hard work', at 35% and 36% respectively. In Qatar, respondents believe that 34% of success is due to chance which is the highest of all countries surveyed.

Dr. Greg B. Davies, Head of Behavioural Finance at Barclays, warns against being too self-assured, commenting: "Strong belief in skill rather than luck could give you a degree of over-confidence in future decisions.  This mindset can be hazardous to the long-term security of a business, or to an investor, as you end up taking more risks on the assumption that your success has been wholly attributed to your own good decisions."

When asked about learning from failure there are variations within the MENA region amongst respondents who have experienced failure. Respondents in Qatar 73% (the highest globally), UAE 45% and Saudi 34% cite that they have learnt a great deal from past failures. When these respondents were asked if they were able to bounce back quickly from failure the responses were similar; 85% in Qatar agreed with this statement, compared to 45% in Saudi and 37% in UAE.

The report reveals a contrast in the number of people who see themselves as entrepreneurs in Western versus Eastern economies. According to the research, just 29% of respondents in the US and 30% in Europe regard themselves as entrepreneurs, compared to 47% in Asia, 50% in the Middle East and 55% in Central & South America.  In addition, 56% of these entrepreneurs globally say that they learned a great deal from failure, compared with 41% of non-entrepreneurs.

Rory Gilbert, Managing Director and Head of Wealth and Investment Management, Barclays, Middle East and North Africa, said: "Traditionally, many regard Europe and North America as entrepreneurial hotbeds, but these findings support the widely held belief that we are seeing a global shift, with a fear of failure perhaps holding these 'established' economies back.  Governments across the globe have highlighted the crucial role that entrepreneurs will play in kick-starting the global economy, so understanding their psyche, their culture of perseverance and how this differs across regions will be critical in making this opportunity become a reality."  

Global Grit

The report reveals some significant findings relating to the mindset of individuals in different regions.  In the Middle East, 83% of respondents agree that anyone who works hard enough can become a successful entrepreneur.  The corresponding figures from the US and Europe are just 49% and 44% respectively.  

The report reveals the personalities of entrepreneurs in different regions of the world, with those in the East determined to overcome setbacks and persevere.  There is perhaps another element at play though, as the broader economic climate and mindset of governments, regulators and businesses impact on the ability of entrepreneurs to succeed.  Paul Ormerod, an economist and author of Why Most Things Fail...And How to Avoid It, suggests that setbacks are inevitable and long-term success relies on having clear risk mitigation policies in place.  He comments, "The usual approach is to try to predict potential problems and then put plans in place to stop them happening.  But you cannot avoid failure.  You'll never get round this fundamental problem, no matter how smart you are.  It's inherent to all evolving systems, which is exactly what human social and economic systems are.  Therefore, we come back to the power of persistence, which the East appears to be embracing.  The questions are what the West needs to do counter this potential power shift, and what the longer term implications are."

-Ends-

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Kiran Makhija 
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Memac Ogilvy PR Dubai
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© Press Release 2012