Inside Money: Entrepreneurial study finds where angels look for higher returns

A just-released study found Polish angels expected returns of 34 per cent on their investments - the highest of all. Photo / Thinkstock

Start-ups should tread carefully when Polish angels step in, if the inaugural BNP Paribas Global Entrepreneurialism Report is any guide.

The just-released study, which surveyed over 2,500 wealthy entrepreneurs in 17 markets, found Polish angels expected returns of 34 per cent on their investments - the highest of all and well above the angelic average expectation of 27.7 per cent return on capital.

Hong Kong-based angels were almost as demanding, targeting 32.1 per cent returns on their speculative investments, the BNP Paribas report says.

"More conservative expectations are set by German angels (15.7 per cent), Swiss angels (19.2 per cent) and French angels (22.5 per cent)," the study says. "Younger entrepreneurs target 30.1 per cent while older angels target 18.4 per cent."

But apart from investigating the "expectations, allocations and risk levels of the angel", the study examines other entrepreneurial spirits.

"... we believe entrepreneurs are among the most important 'pollinators' of future global wealth creation, both for themselves and those around them," the report buzzes on.

"These individuals drive global wealth creation, often singlehandedly, in a way that is distinct from the rest of the population."

The BNP Paribas-sponsored study, produced by "global wealth industry" research firm Scorpio Partnership (whose website address www.scorpiopartnership.com went AWOL when I clicked on it) offers an almost romantic view of the entrepreneurial class.

"They will step into the unknown to pursue success. The strength of their motivation marks them out as remarkable people," the report goes on.

The rest of us, including aspiring entrepreneurs - the wantrepreneurs - can only wonder: "What motivates them? What drives them on? What makes them happy? What worries them? What will they do next?"

On the agenda for many entrepreneurs (whatever their emotional states), the study says, is a foray into financial services, which ranked as the top-rated target sector after garnering the interest of 16 per cent of those surveyed.

"The significance of this is the fact that, given the previous five years of tense situations among the financial industry, it appears that entrepreneurs could be starting to turn their attention to this sector as they scent opportunities," the report says. "Given these are also wealthy individuals in their own right, it will be fascinating to determine how they will deploy their capital and skills as owners and angels to build on their successes to date."