Tech Execs Pessimistic About Economy, Optimistic About Businesses: Survey

Tech Execs Pessimistic About Economy, Optimistic About Businesses: Survey

January 16, 2020

80% expect a downturn or recession, but are confident about their businesses, Trivago study shows

Tech executives in the United States and European are expecting a significant economic downturn in the next couple of years, but most remain confident in the future of their own companies, according to a survey commissioned by online travel site Trivago.

The findings from Trivago’s survey include:

>The economy: About 80% of tech executives surveyed said they expect a recession or prolonged downturn within the next two years, with 81% saying the economic problems will likely occur in the United States.

>Their own companies: Almost two-thirds of respondents – 61% — are very confident about their businesses’ positions in the industry.

>Stronger EU tech industry: 59% of executives said European tech startups have become more competitive against their US counterparts over the past five years. In addition, 44% of respondents said Europe had the stronger long-term growth trajectory, while 41% said the United States did.

>Acquiring talent: Among the tech executives, 56% said EU companies are challenging US organizations for IT talent. They pointed to European companies having a better focus on brand (97% agreed), higher online marketing and sales activity (93%), faster focus on international markets (85%), and more time spent on development before going to market (80%).

>Diversity: 84% of respondents said the EU’s working culture is attracting global talent, though almost 90% of executives said US firms are less risk-averse, which is an advantage.

>Risk factors: The lack of talent and data security were the top concerns, with 52% of tech executives pointing to both. That was followed by government regulation, at 51%, with regulation being a larger issue in the United States. Almost three-quarters – 72% — said regulations make accessing funding more difficult.