Rising geopolitical tensions are pushing entrepreneurs to reconsider how and where they operate. According to EY’s January 2025 CEO Outlook Pulse, leaders now rank geopolitical disruption among the most pressing risks for the next 12 months. At the 2024 Strategic Growth Forum, founders shared how they’ve delayed investments, relocated assets, or exited markets entirely. But risk avoidance alone isn’t enough. Entrepreneurs need to actively evaluate policy shifts, trade disputes, and regulatory environments to protect their businesses and identify new opportunities. One business owner noted that even a domestic move like relocating a factory within the U.S. presents a tangle of tax and regulatory complexities. “We evaluated everywhere, and it’s hard now to find a place where we’re comfortable going,” he said. “We’d like to invest.”
To navigate this uncertainty, entrepreneurs can start by establishing cross-functional risk teams and governance structures that keep geopolitical threats in focus across business units. Continuous monitoring of risks from national elections to regulatory reform helps leaders stay alert to early signals of disruption. Founders are also encouraged to use quantitative tools to evaluate potential exposure, from workforce impacts to supply chain breakdowns. Regular tabletop exercises and scenario planning can foster faster, more confident decision-making. While no market is immune to volatility, businesses that plan proactively and train their teams accordingly will be better equipped to handle change and grow despite it.
