In the Innovation Economy, a segment representing early stage, venture-backed, high-growth companies in disruptive industries, more than 8 in 10 business leaders are confident about their company’s and industry’s performance in the year ahead (82%). While their upbeat outlook is refreshing after a shaky 2023, it’s balanced with realism, as executives know challenges are ahead. Leaders are most concerned about cybersecurity and fraud (29%), the adoption of artificial intelligence (AI) and rising interest rates (both 27%).
Despite several years of economic turbulence, leaders surveyed from innovation hubs around the world (Australia, France, Germany, India and the U.K.) reported confidence about the global (70%) and national (63%) economies heading into 2024. The results paint a stark contrast to sentiment in the U.S., where only 15% of Innovation Economy counterparts said they’re optimistic about the global economy.
Tied to their optimism, a majority (94%) of Innovation Economy leaders expect their revenue and sales to increase or hold steady in 2024. Similarly, 95% expect increasing or steady profits; 93% also plan to increase or maintain their capital expenditures. Approaching 2024 with a growth mindset, nearly three-quarters (74%) expect an increase in credit needs, and 86% plan to either add or maintain headcount in the year ahead.
Despite ambitious plans, these leaders indicated they’re also prepared to ride ongoing waves of uncertainty. More than half (52%) are bracing for a recession in 2024, and more than three-quarters (78%) reported costs are rising for their business due to inflation. Additionally, 47% reported having raised enough capital to hold off for the next year, and fewer plan to raise new equity (27%) or debt (20%).
Even with declining technology valuations, many Innovation Economy leaders in these markets are not worried about negative impacts. In fact, many are expecting positive impacts around new product and innovation development (57%), hiring and talent management (52%) and growth projections (49%).
Contributors
Alex McCracken
Innovation Economy, EMEA Tech Sector
Rosh Wijayarathna
Innovation Economy, U.K. and Ireland
Dorothee Stik
Innovation Economy, France, Benelux and Southern Europe
Max Hauer
Innovation Economy, DACH Region
Dhaval Shah
Innovation Economy, India
Peter Bairaktaridis
Innovation Economy, Australia
About the survey
In its first year, the Business Leaders Outlook Innovation Economy Around the World survey includes highlights capturing the concerns and expectations of senior business leaders at early stage, venture-backed, high-growth companies from major global innovation hubs.
This year, 236 respondents completed the online survey between November 16 and December 13, 2023 in Australia, France, Germany, India and the U.K. Results are within statistical parameters for validity; the error rate is plus or minus 6.4% at the 95% confidence interval.
Read our other 2024 Business Leaders Outlook Reports.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.
