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THE POWER OF HIGH-IMPACT ENTREPRENEURSHIP

MULTIPLYING IMPACT THROUGH HIGH-QUALITY JOBS Results from Surveys of Employees of Endeavor Entrepreneurs

a report from:

supported by:


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written by Harshet Lunani Endeavor Insight


GLOBAL EMPLOYEE SURVEYS Endeavor, a global nonprofit organization operating in 14 countries worldwide, is leading the global movement to catalyze long-term economic growth by selecting, mentoring, and accelerating the best high-impact entrepreneurs around the world. Through facilitating access to mentorship, networking opportunities, and capital, Endeavor accelerates high-impact entrepreneurs’ growth despite regulatory and macro-economic barriers. Since its inception in 1997, Endeavor has selected over 750 entrepreneurs and more than 450 companies. These companies have created more than 200,000 jobs and $5 billion in revenue. Figure 1: Map of Countries Represented in Endeavor’s Global Employee Survey Source: Employee Surveys 2010–2012

The core of Endeavor’s social impact is the creation of high-quality jobs by entrepreneurs who are a part of its network. On average, entrepreneurs supported by Endeavor create jobs 5.4x faster than comparable entrepreneurs in their countries.1 To better understand the quality of jobs and the multiplier effect these jobs have had, Endeavor conducts surveys among the employees of the companies it supports. We use these surveys to measure Endeavor Entrepreneurs’ impact on their employees and their families as well as to better understand how these successful entrepreneurs are changing cultural attitudes about entrepreneurship. Over the last two years, Endeavor has carried out these surveys in the seven countries listed below: 1. South Africa (2010)

3. Brazil (2011)

5. Uruguay (2011)

2. Argentina (2011)

4. Turkey (2011)

6. Egypt (2012)

7. Jordan (2012)

The companies selected to be part of the employee survey in each country were selected randomly or constituted the entire Endeavor network in their countries. Global Endeavor Employee Surveys 1. How High is High Impact, Endeavor Insight 2012

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OVERALL SATISFACTION Endeavor measures employee satisfaction in these surveys across various metrics. In terms of overall satisfaction with their current jobs, employees of Endeavor’s entrepreneurs responded with remarkable consistency: in each country, more than three-fourths of employees reported that they were satisfied at their current jobs (Figure 2). On average, approximately 80% said that they were either satisfied or very satisfied with their current job versus 46% who were satisfied with their previous job. Satisfaction across more specific metrics, such as company culture or professional development, was also similarly high across all the countries. Figure 2: Satisfaction in Current vs. Previous Job Among Employees Source: Employee Surveys 2010–2012

Current Job: Satisfied or Very Satisfied

77%

80%

79%

80%

85%

82%

80%

ARGENTINA

BRAZIL

EGYPT

JORDAN

TURKEY

URUGUAY

AVERAGE

Previous Job: Satisfied or Very Satisfied

61%

32%

76%

19%

37%

52%

46%

ARGENTINA

BRAZIL

EGYPT

JORDAN

TURKEY

URUGUAY

AVERAGE

Figure 3: Percentage of Employees Equally or More Satisfied Compared to Previous Job Source: Employee Surveys 2010–2012 Average

Argentina 81% Brazil 96% Egypt 81% Jordan 93% Turkey 88% Uruguay 84% 0%

20%

Global Endeavor Employee Surveys

40%

60%

80%

100%

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SATISFACTION METRICS Figure 4: Percentage of Employees Satisfied within Each Category Source: Employee Surveys 2010–2012 Current Job (darker shade)

Current Job Average

Previous Job (lighter shade)

Previous Job Average

Company Culture

Company Prestige

Income

100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

Professional Development

Quality of Colleagues

Uruguay

Turkey

South Africa

Jordan

Egypt

Brazil

Argentina

Uruguay

Turkey

South Africa

Jordan

Egypt

Argentina

Uruguay

Turkey

South Africa

Jordan

Egypt

Brazil

Argentina

0%

Working Hours

100% 90% 80% 70% 60% 50% 40% 30% 20% 10%

Uruguay

Turkey

South Africa

Brazil

Argentina

Uruguay

Turkey

South Africa

Jordan

Egypt

Argentina

Uruguay

Turkey

South Africa

Jordan

Egypt

Brazil

Argentina

0%

Note: Countries are omitted where survey data does not exist

Global Endeavor Employee Surveys

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EDUCATION Education is a key factor in the development of any country, and is of particular importance in countries outside of the U.S. and Western Europe, where economic development outpaces talent development. While education of employees is important, it is also important to assess the types of educational benefits that their children received. While developing employees’ skills can drive growth of the business, providing educational benefits to employees’ children can impact the economy for decades. Entrepreneurs in all Endeavor countries enabled their employees to provide their children with a high level of educational opportunity. On average, 92% of employees said that their current job allowed their children to have a better or similar education as children of individuals with similar social backgrounds and opportunities. Figure 5: Percentage of Employees’ Children with Equal or Better Access to Education than Comparable Workers’ Children Source: Employee Surveys 2010–2012

ARGENTINA

BRAZIL

97%

91% AVERAGE

TURKEY

81%

Global Endeavor Employee Surveys

92%

URUGUAY

97%

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HEALTHCARE High-quality jobs come with more than a paycheck. Healthcare is a benefit, like education, that spills over into the wider economy. Entrepreneurs in Latin America have been particularly sensitive to their employees’ health needs, and in our global survey, five of six Endeavor Entrepreneurs were more likely to provide private healthcare than their counterparts. Endeavor firms keep their employees and their families healthy, spurring workplace productivity and economy-wide growth. Figure 6: Percentage of Employees with Access to Private Healthcare Available vs Comparable Workers Percentage of Employees Source: Employee Surveys 2010–2012 Participant (darker shade) Comparable (lighter shade)

ARGENTINA

86% BRAZIL

JORDAN

95% 63%

79%

72% TURKEY

Global Endeavor Employee Surveys

92%

AVERAGE

80%

72% URUGUAY

55%

98%

59%

99%

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INTEREST IN ENTREPRENEURSHIP Part of Endeavor’s mission is to create cultures in which people value and respect entrepreneurship as a career path. To this end, Endeavor selects entrepreneurs who will have the capacity to inspire their employees and influence their belief in the power of entrepreneurship to change economies and countries. The survey indicates that Endeavor Entrepreneurs have indeed inspired many of their employees to join the next generation of entrepreneurs. On average, 80% of employees in Endeavor companies said that they believe very strongly in entrepreneurship and approximately half were seriously considering becoming entrepreneurs in the future. Figure 7: Percentage of Employees with Interest in Becoming an Entrepreneur Themselves Source: Employee Surveys 2010–2012 *Each square represents 1% of survey participants

ARGENTINA

BRAZIL

High Interest (7-10) Moderate Interest (4–6) Low Interest (1–3)

EGYPT

JORDAN

TURKEY

SOUTH AFRICA

URUGUAY

Endeavor spreads high-impact entrepreneurship in countries around the world and its 14 offices link job creators to an unrivalled global network. These surveys contain two years of data demonstrating that employees of Endeavor companies benefit from more access to healthcare and education, and report greater job satusfaction than their peers. These employees represent the next frontier of high-impact entrepreneurship, inspired by their entrepreneurial employers and supported by Endeavor’s global reach. Global Endeavor Employee Surveys

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Multiplying Impact Through High-Quality Jobs