Globally as businesses ramp up investments and hiring, the technology, healthcare and industrials sectors have emerged as the most optimistic, while those involving consumer-related businesses remain more cautious, according to a recent report.

Investment appetite is strong, with 45% expecting a typical company in their sector to increase investments in the coming year, rising to a significant 85% over five years, finds Swiss bank UBS’ first-ever Global Entrepreneur Report, which surveyed 156 entrepreneur clients and network members with a combined annual revenue of US$19.1 billion. The aim of the report  is to shed light on industry confidence, hiring intentions and investment trends.

In the Asia-Pacific region, 59% of entrepreneurs, the report notes, are optimistic about their industry’s outlook over the next 12 months, closely mirroring the global sentiment of 61%, with entrepreneurs in the region focused on artificial intelligence ( AI ) and strategic acquisitions. AI infrastructure and data analytics in particular are seen by businesses as the top areas for investment.

The hiring trend is also positive, though more sedate, with 23% of Asia-Pacific entrepreneurs expecting workforce expansion in 12 months, and that figure jumping to 57% over five years.

While global hiring challenges persist, 52% of respondents report difficulties in talent acquisition; however, Asia-Pacific firms appear to be navigating this issue easier than their counterparts in the Americas and Europe.

AI is emerging as a top commercial opportunity, with 75% of Asia-Pacific entrepreneurs expecting AI to enhance productivity, surpassing the global figure of 67%. The technology’s role in customer experience and service innovation is also highly anticipated, with 63% of Asia-Pacific entrepreneurs believing it will drive improvements in this area.

“AI is one of the top-of-mind topics among Asia-Pacific entrepreneurs today, especially for its potential to deliver higher business productivity,” says Sundeep Gantori, equity strategist for global technology at UBS’ Asia-Pacific chief investment office. “Seventy-five percent foresee AI leading to improved output, and 66% believe it is the technology offering the biggest commercial opportunity. There is no doubt that AI is revolutionizing the way businesses operate.” 

Challenges

Despite strong optimism, political instability, the report points out, remains the top concern for 53% of global entrepreneurs, followed by higher taxes ( 42% ) and geopolitical risks ( 41% ).

Business leaders in Asia-Pacific are also wary of industry regulations and compliance shifts, which are cited as a major concern by 46% of respondents. Meanwhile, cybersecurity threats are increasingly pressing, particularly for technology and healthcare entrepreneurs, with 35% expressing concern over data security risks.

Beyond business growth, Asia-Pacific entrepreneurs, the report notes, are keen on diversifying their investments and achieving personal balance. Notably, 49% say they aim to invest across multiple asset classes, reflecting a broader push towards wealth preservation and expansion, while 47% are looking at private equity or angel investing, underscoring interest in fostering the next generation of businesses.

As well, several entrepreneurs says they want to give back through philanthropy ( 31% ), start a family office ( 24% ) and start or focus more on alternative business ventures not specific to their current businesses ( 32% ).

However, the report reveals, 52% of entrepreneurs say they are planning to place more focus on personal pursuits, such as travel, hobbies and family time, hinting at a shift in lifestyle aspirations.