In early May 2010, at the request of the Federation of Enterprises in Belgium (FEB), Accenture and INSEAD, supported by Shell and Microsoft, conducted a survey of European business leaders.
Seventy per cent of those participants representing companies that are currently experiencing revenue-growth said that innovation was their key strategy. Rudi Thomaes of FEB confirmed this: "The European CEO is not blind to what is happening…pessimism is not the main attitude we found, and there is enormous emphasis on innovation." However, he called for more support for innovation, describing this as "absolutely critical".
Here, concerns were also raised about lack of satisfaction with the reform on Europe's financial institutions. Sixty-four per cent of respondents from companies experiencing a loss of revenue felt that institutional and market issues have yet to be resolved. "There is a fear of instability in financing," Thomaes said, adding "stability is the most urgent priority".
His concerns were echoed by Amcham's Mark Spelman, who also emphasized the import role of SMEs not only in economic recovery, but also in fighting the problem of unemployment. Here, training is an issue. Europe has 20 million unemployed, but 4 million job vacancies. The flexibility of the labour market, and the need to address Europe's skills shortage, is seen as a major issue by an overwhelming majority of CEOs. On the subject of Asia, which is now recovering more quickly than Europe, the survey showed that a majority of business leaders see Asia as an opportunity rather than a threat, but Spelman stressed that we "must look beyond China and India - lets look to other countries as well".
Frank Brown of INSEAD agreed, but further stress the need for greater engagement.
Brown also raised the issue of Europe's demographic situation, but felt that an ageing population need not be a problem, but should be seen as an asset.
He added: "The quality and diversity of Europe's population is its greatest asset," although he warned of the need to manage immigration carefully. Spelman pointed out that, while the US has taken in more skilled workers, the situation in Europe is different and must be addressed. "The key issue is to get the balance right," he explained. On environmental issues, a majority of respondents support the EU's position in prioritizing the fight against climate change, and agree on the need for further investment in cleaner and more renewable energy sources. Thomaes warned: "Ecologically and technologically, Europe needs to take the lead on climate change."
And what is the biggest grumble of all among CEOs? No surprise there – an overwhelming 71% said that the biggest barrier to the success of SMEs is bureaucracy. With 95% of respondents in agreement on the importance of encouraging growth in the all-important SME sector, the survey sends out a strong message to government on the need to cut red-tape and let businesses do what they are best at – creating jobs and stability.
In conclusion, remarking on the constancy of opinion in this survey, and in comparison to previous surveys, Frank Brown laid down the gauntlet. "We know what to do – now is the time to stop talking, and to start acting!"
EBS CEO Survey results: Putting Europe Back On Track
It became clear from the results, presented at the beginning of the European Business Summit (EBS), that Europe's CEOs are confident, realistic, and broadly in agreement on the directions that they need in order to achieve recovery.
And what is the biggest grumble of all among CEOs? No surprise there – an overwhelming 71% said that the biggest barrier to the success of SMEs is bureaucracy.
By: N. Peter Kramer
