Global Expansion Enthusiasm Among Executives Remains High Despite Challenges

The Factum Global Business Survey, published last month by consultancy Factum Global, indicates an 8 percent decrease in its overall “sentiment score”—a measure of leaders’ attitudes across various business factors—compared to last year. Despite this decline, a significant 77 percent of respondents plan to continue or increase their international activities in the coming six months. The report is based on a survey of 150 business executives from both for-profit and nonprofit sectors conducted between March and May.

This dip in sentiment reflects uncertainties related to global tensions and the ongoing post-pandemic recovery. However, Factum Global founder and CEO Francisco Gomez emphasized the resilience of global initiatives despite these challenges. He highlighted that leaders see adaptability and innovation as crucial to success and recognize the benefits of international expansion outweighing the risks.

The survey also identified a shift in risk perception, with 75 percent of leaders now considering international business less risky, down 8 percent from the previous year. The report advises associations hesitant about global ventures to maintain international connections amid complexities, with one respondent noting the heightened risk of not having global counterparts in a rapidly changing environment.

Gomez echoed this sentiment, stressing the importance of proactive engagement despite geopolitical issues. He warned that the risks of inaction are higher than ever, urging associations to address global challenges head-on.

The survey found that most respondents view their organization’s global performance positively or neutrally, emphasizing the necessity of a clear strategy for international efforts. Gomez pointed out that many organizations undertake international activities without a proper strategy, which is essential to mitigate risks and ensure resource allocation leads to substantial returns.

Respondents were optimistic about technological advancements, agreeing that tech breakthroughs will enhance their ability to navigate the fast-paced digital transformation. Gomez noted that associations, with their strong focus on ethics and standards, are well-positioned to manage these shifts responsibly while expanding globally. He highlighted that associations are implementing robust risk management frameworks, balancing innovation opportunities with awareness of potential risks and biases.

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