Business leaders’ stress levels increased by 50 per cent in 2005

The Grant Thornton International 2006 International Business Owners Survey (IBOS) reveals that stress levels among business leaders worldwide has risen by 50% over the last year. Research among more than 7,000 business owners in 30 countries around the world shows that 57% of all business owners reported higher stress, compared to 39% in 2004, and just 6% felt their stress levels had gone down. Top of the stress table for the second year are business owners in Taiwan where a remarkable nine out of ten respondents feel more stressed this year. Taiwan is followed by a range of other countries which are fast-changing economies: China (87%), the Philippines (76%), Botswana (74%), Hong Kong (69%), Singapore (67%) and South Africa (65%).

Without a doubt, the least stressed business people this year are to be found in Europe and the US, although even there stress levels have also risen dramatically. Sweden comes bottom of the table with 24% feeling more stressed, followed by Italy (40%), Spain and France (42%), the Netherlands and the UK (43%) and the US (45%). The regional comparisons show an EU average of 44% of respondents being more stressed, 46% of NAFTA respondents and 77% of respondents in East Asia.

The research also showed a direct correlation between stress and the amount of holiday taken by executives around the world (excluding public holidays). The majority of business leaders in East Asia suffered from a high stress increase in 2005, possibly as a result of the poor holiday allowance. Coming in at the bottom of the league are Thailand with just four days holiday on average, Taiwan (8 days), Malaysia and Turkey (10 days). European countries took by far the highest number of days holiday on average (22 days) compared with just 12 in East Asia. In the 'work-hard' environment of the US, average holidays taken were also lower at 14 days. Top of the worldwide holiday league table is France – with an average of 27 days – followed by the Netherlands (25), the UK and Sweden (22), Germany (21) and Italy (20).

Said Andrew Godfrey, partner Grant Thornton: "Stress levels rocketed in 2005 – all around the world, whether economic activity was picking up or slowing down. Keeping up with fast growth or combating economic weakness are both equally stressful, although Asian business leaders are under particular strain as their businesses and markets continue to show phenomenal growth."

Andrew continued: "The direct link between stress and holidays is fascinating. Do the results mean that executives who take more holiday feel less stressed? Or is it maybe that the less stressed they are, the more holiday they feel able to take? Either way, the differences in holiday patterns around the world are huge, with Europeans clearly getting the most out of their personal time. One has to question whether the European model of long holidays is sustainable in the long run, however, especially as the East Asia countries move up the knowledge and productivity ladder."

Other factors which contributed to stress in some countries included business travel and fears over job security. Business travel was most stressful for Indian executives, with 41% claiming it was very or extremely stressful, followed by the Philippines (22%), Botswana (21%) and China (20%). Japan and Thailand jointly topped the league for concerns over job security with 49% of respondents claiming it was a high or extreme factor. This was followed by India (48%) and Turkey (42%). Least stressed about job security were executives in Sweden (7%), followed by the Netherlands, the UK and Singapore (9%).

Ends

Notes to editors

The Grant Thornton International Business Owners Survey (IBOS) was carried out among more than 7,000 owners of medium-sized businesses from 30 countries during Q4 2005. IBOS began in 2002 and builds on the European Business Survey (EBS) which Grant Thornton ran from 1993 to 2001. The research was conducted by Experian Business Strategies Limited and Harris Interactive.

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