Entrepreneurs optimistic about 2026 despite political and economic challenges

Entrepreneurs are optimistic about 2026, entering the year with momentum, growth plans, and hiring intentions, a report from UBS has shown.

Its Global Entrepreneur Report showed that 68 per cent of entrepreneurs were optimistic about their business over the year ahead, fuelled by an expected uptick in demand, with 64 per cent anticipating increased appetite for their products and services.

The other key factors driving the positivity were favourable economic conditions (34 per cent), advances in technology and innovation (34 per cent), and adopting more sustainable practices (23 per cent).

Confidence was not spread evenly among jurisdictions, with those in Europe more optimistic than entrepreneurs in Asia-Pacific, for example.

The majority of entrepreneurs planned to expand their workforce this year, including 63 per cent in Europe.

Over the next five years, 80 per cent of entrepreneurs planned to increase headcount, with the US leading the way at 94 per cent, followed by Europe (86 per cent).

Entrepreneurs were also planning geographical growth, with 45 per cent considering relocation or expanding their business to another jurisdiction, led by those in Europe (51 per cent).

This intention was strongest in the technology and healthcare sectors (54 percent), while just 33 per cent of those in the finance sector planned to relocate or expand.

Nearly two-thirds (64 per cent) of global entrepreneurs planning geographical expansion were doing so to access new customer markets, while 30 per cent wanted to be closer to clients, partners, or suppliers, 25 per cent were looking for more favourable regulatory environments, and 25 per cent wanted to reduce operating costs.

Despite the optimism and planned activity, entrepreneurs were concerned about political uncertainty, with 42 per cent citing it as a worry for the year ahead.

They also raised concerns about potential shifts in trade policy (36 per cent), the risk of global recession (35 per cent), and the possibility of major geopolitical conflicts (35 per cent).

In response, 66 per cent of entrepreneurs planned to boost operational efficiency, while 60 per cent were considering market and customer base diversification.

“Entrepreneurs are entering this year with remarkable resilience and a renewed sense of ambition,” commented UBS Global Wealth Management head of strategic clients & global connectivity and OneUBS co-head EMEA, Benjamin Cavalli.

“Despite persistent geopolitical uncertainty, nearly seven in ten remain optimistic about the year ahead, driven by strong customer demand and rapid advances in technology.”

“We’re seeing founders double down on innovation, expand into new markets, and adapt their strategies to stay ahead of shifting global dynamics.

“What comes through loud and clear in this year’s findings is that entrepreneurs are not preparing for retrenchment. They’re preparing for reinvention, and they’re doing so with the clarity and confidence that have always defined the world’s most dynamic business builders.”

---