Record levels of British businesses experience
extraordinary growth results as UK ranks fourth in 'super growth'
worldwide league tables
28 March 2007
- India and Hong Kong fall outside the Top 10 for
the first time -
More than a quarter of businesses in the UK (26%)
experienced well above average growth levels in 2007 which has
propelled the country to a fourth place ranking in the world league
tables of 'super growth' companies*, according to new research
published today by leading business and financial advisers Grant
Thornton UK LLP. This result now sees the UK move up two places
higher than last year's league tables, when only 23% of businesses
were classed as achieving super growth.
The Super Growth Index, now in its fourth year, forms part of the
Grant Thornton International Business Report (IBR), which surveys
more than 7,200 businesses owners from 32 countries. The survey
looks at how businesses have performed over the past year, the
issues that concern them most and their plans for the
future.
Although this is a great result for the UK, the accolade
of highest ranked EU country still remains elusive, with Ireland
securing the top spot this year.
Anuj Chande, International Business Partner at Grant
Thornton says: "This is a fantastic result for the UK and shows
what businesses can achieve when they are innovative, invest in
their employees and maximise opportunities that arise from positive
economic conditions. This record achievement positions the UK as
one of only three EU countries to make the top 10 list."
"The UK's position is a result of the significant
investment we have seen in business capital and employee numbers,
coupled with strong consumer confidence and demand. It has also
been bolstered by the substantial growth of business and financial
services," he continues. "Over the past four years, the buoyant
conditions experienced in the UK have allowed businesses to retain
a relatively stable position in the league table of super growth
countries."
Global picture
The US has topped the Index for the third year running,
with 44% of companies achieving super growth status. Much of the
US' result can be attributed to the continued dynamism which
characterises the current economic picture.
The real surprise in the global picture was Armenia, a
newcomer to the survey, with 38% of businesses achieving super
growth. Armenia knocked India from a second place ranking in 2006
to a ranking of 15th (15%) in 2007. In an equally surprising
result, Hong Kong (18% super growth companies) dropped from 3rd
place to 11th.
Other strong performers this year included the Philippines
(21%) who climbed a staggering 15 places from 23rd to 8th place,
Argentina (14%) rising from 27th to 15th, Russia (14%) from 29th to
18th place and Italy (11%) which ascended from 30th to 21st
place.
Less impressive results came from Malaysia (10%) who fell
an astounding 18 places from 8th to 26th and New Zealand businesses
(8%) which dropped from 15th to 28th place.
Commenting further Chande says: "The surprise winner of
this year's survey was clearly Armenia achieving a ranking of
second place, with 38% of businesses in the country experiencing
growth well above and beyond the norm. On further inspection this
can be explained by strong GDP growth which has exceeded 10% per
annum over the past few years."
"It would have been difficult to predict India and Hong
Kong's decline in the league tables, as one would have expected
them to continue the rampant growth they have experienced in the
past few years. However, companies there are clearly consolidating
their business models, reviewing their growth strategies and
concentrating on significantly increasing their profit levels," he
continued.
Outlook and constraints on
business
- Overall super growth companies are more optimistic than
'ordinary' businesses about a range of indicators over the next 12
months including: turnover (87% compared to 70%), profitability
(66% compared to 54%), employment (67% vs 45%) and investment in
plant and machinery (58% compared to 46%)
- The availability of a skilled workforce was the biggest
cause for concern to super growth businesses with 44% saying it
caused them problems, however, only 36% of 'ordinary business' felt
it was a constraint
- One third (32%) of super growth companies still believe
that regulation and red tape is of key concern in contrast to 38%
of 'ordinary' businesses
- Only 13% of super growth companies believed that the
ability to raise long-term finance was a constraint in comparison
to one-fifth (21%) of all businesses.