MORE THAN 80% OF TECH LEADERS PREDICT ECONOMIC DOWNTURN, YET ARE OPTIMISTIC ABOUT THEIR BUSINESSES
New trivago study of global C-suite and founder sentiment indicates EU firms are growing more competitive in tech and are increasingly attracting top global talent
The research is designed to take the pulse of tech leaders on critical issues ranging from the global economy and the startup scene to business risks and talent. Key findings indicate that European tech firms are becoming more competitive, attracting the best and brightest global talent and offer a more diverse working environment.
At least 80% of those surveyed expect a recession or prolonged downturn within the next two years. Eighty-one percent of respondents feel these problems are likely to occur in the U.S. Yet leaders are enthusiastic about their businesses. Nearly two-thirds (61%) are very confident about where their business sits in their industry.
The survey found that Europe’s technology sector is perceived as a growing economic force with a positive long-term outlook and an edge in the “war for talent.” Fifty-nine percent of respondents “definitely” agree that European tech startups have increased competition against the U.S. over the past five years. This momentum is unlikely to slow anytime soon. When asked what region has a stronger long-term growth trajectory, more respondents cited
“It is interesting to see where global technology leaders feel competition is coming from,” said
The War for Talent
Both the vision and business models of European tech startups may be giving them advantages over their U.S. counterparts when it comes to recruiting and growth, the trivago survey suggests. Technology leaders feel that European companies are superior to U.S. firms when it comes to these factors:
- Having a greater focus on brand (97% agree)
- Benefiting from higher online marketing and sales activity in the region (93% agree)
- Focusing on international markets more quickly (85% agree)
- Spending more time on development before going to market (80% agree)
Diversity may be another key benefit for EU companies; 84% of leaders feel the EU’s working culture is attractive to global talent. However, a key advantage for U.S. firms is that they are less risk averse. Nearly nine in 10 leaders feel EU startups are more cautious than U.S. startups.
Global Risk Factors
When asked about growth risks, tech leaders surveyed cited these top concerns: lack of talent (52%), data security (52%) and government regulation (51%). In the U.S., regulation is clearly the biggest risk. Nearly three-quarters (72%) of tech leaders feel regulations have made it more difficult to access funding over the past five years. In the
“The technology industry is critical to the economies of both the U.S. and the E.U. in driving innovation, jobs and growth,” said trivago’s Hefer. “It’s important to us that we keep a pulse on the industry as it changes at such a rapid pace. The findings reflect many of the pain-points and concerns we faced starting out and becoming a fast-growing global tech company, and currently face today. For us, it is unsurprising that concerns over the wider economy are high in the minds of tech leaders on both sides of the Atlantic. However, while the wider economy is still a concern, we are enthusiastic that a majority of the leaders we surveyed have great confidence in the prospects of their own companies and of the overall industry.”
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About this research:
This survey was conducted by trivago in conjunction Censuswide, who surveyed 1,009 C-level executives and founders from technology companies in the
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