The rise and rise of the entrepreneur

A SHIFT in the source of wealth creation in Yorkshire has occurred, according to a new report, with “a significant number” of high net worth individuals now accruing their assets through entrepreneurial ventures or personal investments, rather than inheritance.

Entrepreneurship is the most prevalent source of wealth among high net worth individuals in Yorkshire, the latest report in the Barclays Wealth Insights series reveals, as nearly half of those surveyed in the region say that one of their main sources of wealth is the sale of, and/or the profits from a business, compared to 13 per cent who say it is from inheritance.

In the UK as a whole, 45 per cent of high net worth individuals cite entrepreneurship as one of their main sources of wealth, whilst 14 per cent cite inheritance.

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Martin Cuthbert, director, wealth and investment management for Barclays in Leeds and Sheffield, said: “This report shows us that the order of wealth creation is shifting in Yorkshire, with a significant number of high net worth individuals accruing their assets through entrepreneurial ventures or personal investments, rather than inheritance.”

Barclays Wealth said that the findings reflect expert views that the growth of global wealth is now being driven by entrepreneurship, rather than inheritance, as entrepreneurs are found to accumulate wealth faster than high net worth individuals who have made their money through earnings, bonuses or inheritance.

In Yorkshire, nearly one in five of high net worth respondents reported that they had accumulated the majority of their wealth in under 10 years.

In line with this, a third of respondents in Yorkshire agree that wealth can be created faster today than in the past.

Aside from entrepreneurship, other common sources of wealth in Yorkshire are personal investments – 48 per cent – and savings from income and bonuses over time – 44 per cent.

Meanwhile, in total, more than half of high net worth individuals in Yorkshire plan to give a proportion of their wealth to charity, the highest of all UK regions, and 94 per cent to family and friends either during their lifetime or through inheritance. Mr Cuthbert said: “It is encouraging that this new generation of wealthy individuals is focused on using their wealth to help others, with a number of those in Yorkshire putting aside a large proportion of their assets for philanthropic giving or helping family and friends.

He continued: “These findings help us to understand how the picture of wealth is changing in the region, and, ultimately, how this affects business and investment decisions.”

Launched this week and based on a global survey of more than 2,000 high net worth individuals comprising entrepreneurs, business leaders and investors, the report, Origins and Legacy: The Changing Order of Wealth Creation, provides an in-depth study into how wealth is now being made, spent and shared across the world. Of the 2,000 people interviewed globally, 101 were from the UK, of which 52 were from Yorkshire.

The report navigates the global landscape of wealth, examining how different cultures prepare for the future and consider their legacy through wealth and inheritance planning and philanthropy.