Bangkok--15 Mar--Grant Thornton
WORLD LEAGUE TABLE OF ‘SUPER-GROWTH’ COMPANIES:
US KEEPS TOP SLOT, BUT INDIA AND HONGKONG CATCHING UP FAST. THAILAND “SATISFACTORY” AT 9%
Super growth companies 23 percent more likely to export
Access to finance an advantage for super growth companies
Italy, Russia and Turkey come bottom; Greece shows sharpest fall
For the second consecutive year the US tops the Grant Thornton International Super Growth Index for the country with the highest proportion of “super growth” companies (39 percent). Despite scoring the highest ranking, the proportion of super growth companies in the US actually fell by 9 percent. In contrast, the booming economies of India and Hong Kong surged ahead to take joint second place. With more than a third of companies (34 percent) achieving super growth status, both countries were within reach of challenging the US for the top slot on the Index. Mainland China came in 14th position, with 14 percent of its companies classified as super growth.
Thailand, which was included in the survey for the first time this year, ranked just below the middle, along with Singapore and Taiwan. Of the 150 Thai companies surveyed, 9 percent surpassed average growth to be categorized as “super growth companies”. Peter Walker, Partner of Grant Thornton Thailand considers that, “Midfield is a reasonable position for an economy like ours which has, in recent years, witnessed some of the negative affects of too rapid growth in smaller, developing economies”.
Strong growth performances came from Sweden (31 percent), which climbed back up the Index to third position after dramatically falling to tenth last year from first position in 2004; and Ireland (26 percent), the United Kingdom (23 percent) and Canada (23 percent) which took the next three super growth rankings. Sweden’s resurgence was a reflection of a recovery in domestic spending and increased business investment.
The Super Growth Index, now in its third year, is a unique research project which forms part of the Grant Thornton International Business Owners Survey (IBOS) which surveys more than 7,000 business owners worldwide in 30 countries.
A ‘super growth’ company is one which has grown considerably more than the average, measured against key indicators including turnover and employment. This year the survey established that super growth companies are 23 percent more likely to export than ordinary companies. Also, super growth companies were far less constrained by the ability to finance expansion of their business. For example, cost of finance was an issue for 50 percent more ordinary companies than super growth companies; as was shortage of working capital (47 percent); and shortage of long term finance (58 percent).
Said Peter Walker, partner from Grant Thornton Thailand: "Top US companies continue to grow well in an environment of positive consumer demand, strong capital investment and export growth. However, as the Indian and Chinese economies boom, we see Indian and Hong Kong companies surging up the ranking with the possibility to surpass the US next year. It will be hard for Mainland China to achieve greater super growth status until more companies experience rapid expansion in terms of investment, turnover and employment.”
Peter Walker also noted that the correlation between strong company growth and exports is an interesting consideration for Thai companies who are looking to increase their growth. Mr. Walker said, “Taking their products and services offshore has often been a difficult challenge for many domestic Thai companies but this survey seems to show that export markets may be the place to fuel growth.”
Italy, Russia and Turkey jointly shared the bottom position in the Super Growth Index. Italy’s rank appears to reflect the sustained malaise affecting the economy with weak consumer demand, falling investment and shrinking industrial output. Italy’s ranking has fallen in each of the past three years of the Index.
Super growth companies are very positive about prospects for their business. A balance of 36 percent predict they will increase the selling price of their goods and services compared to 29 percent of companies in general. Super growth companies are also a third more positive about increasing the level of exports this year (32 percent compared to 20 percent) and are looking to make greater investments in their businesses (37 percent compared to 28 percent).
The sharpest fall in the rankings was seen in Greece, down from 9th to 21st position as the proportion of super growth companies fell from 15 to 8 percent, partly in response to the end of the Olympic Games spending windfall.
Notes to editors
The Grant Thornton International Business Owners Survey (IBOS) was carried out among more than 7,000 owners of medium-sized businesses from 30 countries during Autumn 2005. IBOS began in 2002 and builds on the European Business Survey (EBS) which Grant Thornton ran from 1993 to 2001. The research was conducted by Experian Business Strategies Limited and Harris Interactive.
About Grant Thornton International
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About Grant Thornton Thailand
Grant Thornton Thailand is well recognized by the business community as one of the leading professional service firms in Thailand and has been in Thailand since 1991. Our services include IT and business consulting, outsourced accounting and payroll, external and internal auditing services, domestic and international tax planning, corporate finance advisory, restructuring and reorganization, executive recruitment, succession and remuneration planning. To learn more about our firm, please visit our web site www.gt-thai.com .
For further information please contact:
In Bangkok:
Peter Walker or Khun , Grant Thornton Thailand
Tel: 02-654-3330 or [email protected]
In London:
Nan Williams or Paul Donlon, Grant Thornton International Press Office.
Tel: 0870 420 3256 / 07774 741 518 or [email protected]
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